According to two individuals close to the matter, Apple will not be using Qualcomm Chips in the upcoming iPhone and iPad models. Instead, the company is looking forward to Intel and MediaTek’s modem chips as a replacement.
The move is likely going to affect the next models of iPhones which are going to be launched in the fall of 2018. However, Apple could still change the decision by then, according to the unnamed sources.
Reuters has reported that the disagreement has been triggered primarily due to a change in supply arrangements under which Qualcomm has ceased offering some software for Apple. As a result, the tech giant cannot test the chips in its iPhone models.
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Dispute between Qualcomm and Apple
The clash between the two companies has been raising since the beginning of 2017. In those days, Apple kicked things off by documenting a $1 billion claim assuring Qualcomm directed it to pay unjustifiable licensing royalties for tech ‘they don’t have anything to do with.’ Things turned nastier still when Apple quit making installments to the chipmaker – the resulted in a drop in Qualcomm Q3 2017 income.
Both Qualcomm and Apple are engaged in a multinational legal dispute since and the reason is former’s licensing terms to Apple.
In a statement, Qualcomm said:
“We are providing fully tested chips to Apple for iPhones. In addition, we are committed to supporting Apple’s new devices consistent with our support of all others in the industry.”
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Apple’s decision is not surprising
Apple’s decision to discontinue Qualcomm Chips in its future devices is not a surprising one, according to Bernstein analyst Stacy Rasgon. He said:
“Though Qualcomm has for several years supplied Apple’s modems – which help Apple’s phones connect to wireless data networks – Intel has provided upward of half of Apple’s modem chips for iPhones in recent years. Intel in 2015 acquired a firm that would let it replace more of Qualcomm’s chips in iPhones.”
According to Rasgon, it would be premature to be absolutely sure whether Apple has planned to drop Qualcomm for good. The tech giant has the tendency of coming along with multiple contingency plans for different suppliers.
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He stated:
“Apple is big enough that they want to support multiple paths, they can do that. Samsung did this too. A couple of years ago, Samsung designed Qualcomm out; but Qualcomm didn’t even know until it was close to time to ship Samsung’s phones.”
Do you think Apple would be using Qualcomm Chips for its future devices?