Friendly settlement with Apple enables Qualcomm to take over the G5 market
Intel Corp., the world's largest chip maker, has decided to stop all its data-generation chipsets in its fifth-generation mobile phones, known as the G5 modem. On the same day,
Intel Corp., the world's largest chip maker, has decided to stop all its chip-and-transceiver business in its fifth-generation mobile phones known as the G5 modem.
The same day Apple and Qualcomm announced they had reached a friendly settlement of their years-long litigation over patents on smartphones, including the G5 modem, To work with iPhone phones, in particular the fifth-generation support phones.
Two sudden developments
The two developments are surprising, and they are important in the march of smart phones operating on the fifth generation of mobile, Intel's decision is a very serious bomb exploded in the face of the fifth generation of mobile, being the largest manufacturer of electronic chips in the world, and at the time of preparation This technology is a powerful entry into practice and widespread deployment, especially since Intel has reverted its decision to reasons for the lack of a clear path to profitability and positive returns from the manufacture of the fifth-generation modem.
Apple, the maker of the most popular iPhone phones and Qualcomm, the world's largest maker of smartphones, is bringing Qualcomm back to the iPhone market and pave the way for an almost complete dominance and dominance of the modem chipset market. "After Intel came out.
The relationship between the two events
Analysts said, according to several technical sites, that the announcement of the two events in one day was not coincidental, but there is a relationship between them and one degree or another. "It is not clear who came first, what development can be the cause, and what can be the result," said the president and chief analyst of Moore, Inc., a research and consulting firm specializing in IT research and consulting. "It can be explained that it was Intel's decision that made it easier for Qualcomm and Apple to reach a compromise, because Apple no longer had access to Qualcomm after Intel announced its exit from the scene, The settlement between Apple and Qualcomm led Intel out of the field, as the settlement reinstates Qualcomm as the main supplier of its chipset For working with any (iPhone) ».
"Apple thought it might be risky to continue to have a strong partnership with Intel and to rely on its chips, or Intel saw that it did not convince it to inject more resources into it," Morehead said.
Intel's decision was made in a statement posted on the company's official Web site, saying that Intel was planning to go out of the manufacturing of the fifth-generation smart modem modules and complete an assessment of the opportunities for the fourth- and fifth- Personal and Internet devices, as well as other data-based devices, and Intel will continue to invest in infrastructure work for the fifth generation networks.
The statement said the company will continue to meet its current customer obligations with respect to the 4G modem line of the 4G smartphone, but will not release the fifth-generation Modem products, including those initially planned for next year.
«Qualcomm» and «Apple»
As for the compromise between Qualcomm and Apple, the dispute between the two companies broke out two years ago when Apple accused Qualcomm of using illegal patent practices to preserve the monopoly of modem segments that connect phones to mobile data networks. When Qualcomm accused Apple of using its technology without paying.
As a result of the dispute, Apple used Intel's Intel modem chipsets, stopped using Qualcomm chipsets, and stopped paying Qualcomm license fees starting in 2018.
The dispute between the two companies came to court. The results came in favor of Qualcomm, the latest of which was an order by the judge in charge of the case to stop the manufacture of the iPhone phones containing Qualcomm chips, as well as the ban on their use unless Apple paid the fees due. The recent amicable settlement came dramatically, as the litigation was in session, and the court was preparing to hear the jury in the new chapter on the execution of a previous court order in favor of Qualcomm. The news of the agreement reached the courtroom so abruptly that the judge He was informed for the first time of the journalists in the hall and was forced to suspend the hearing. The lawyers of the two companies were also forced to stop and discuss the matter in order to ascertain the news of the agreement.
Apple and Apple have signed a six-year patent licensing agreement and a two-year extension agreement with Qualcomm, according to leaks on a compromise between Qualcomm and Apple. Intel lost its only big customer in the modem segment of smartphones, and Qualcomm made a big victory that led to a 22 percent rise in shares following the announcement of the settlement.