The legal battles between Apple Inc. and Qualcomm, chips’ provider, started in January of this year when Apple Inc. decided to sue the company for withholding $1 billion because Apple Inc. helped the regulators from South Korea to investigate the business of Qualcomm. Chips’ provider answered that Apple Inc. did not execute the conditions of the contract appropriately.
Thus, Apple Inc. took a decision to withhold the royalty payments. It meant that Chips’ producer had to pay authorial fees this time, and, actually, had to revise the forecasts regarding the future earnings. They guaranteed the smaller amount of income than before. Therefore, Apple Inc. was a reason for it since it was one of the greatest sources of the income. So, the Apple Inc. manufacturers got engaged in a legal fight. Including the number of the main Apple’s competitors, most part of businesses supported Apple in this war.
The Outcome of the Legal Battle
From the very beginning, Apple keeps using chips of Qualcomm. They cooperated since the first model of the iPhone. However, the things started to change in this area since the release of iPhone 7 and other future devices that used chips from Qualcomm as well as Intel chips.
With legal battles between the two giant companies, there were no signs of possible compromise. A new report asserts that Apple Inc. actually works on the development of new iPhones and iPads after 2018. They will not use any chips of the previous chips’ provider anymore. Since then, a battle grew, and Apple’s previous chips’ provider tried to forbid an import of iPhones to the USA if Apple wanted to use chips “other than those provided by Qualcomm.” Absolutely not so a long ago, Qualcomm attempted to appeal to a court for Apple Inc.’s actions in China trying to temporally reduce a production and sale of iPhones in one of the most essential markets for Apple Inc.
While Apple (obviously) did not do any official announcements, there are rumours that Apple Inc. values chips from Intel and Mediatek. The main reason of the Qualcomm’s chips unavailability could be a mutual decision of both companies. Apple Inc. does not want to continue its work with the old chips’ provider, and Qualcomm withholds important software provided for the tests of the latest chips within iDevices. Having spoken recently at the Techlight conference of a Wall Street Magazine, CEO of the Qualcomm Company, Steve Mollenkopf reported that he, actually, believed that this technological “war” between two large companies can be settled and ended up. However, he added that there should be a discussion of correct payment.