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Intel gives up on making 5G modems for smartphones

Intel gives up on making 5G modems for smartphones

But following Apple's increasing concerns that current iPhone modem chip supplier Intel would not be able to fulfil 5G orders in time, the Cupertino corporation has made a decision to settle up.

Apple will make a one-time payment to Qualcomm, and the two reached a multiyear agreement whereby Qualcomm will supply chips and license its technology to Apple in exchange for royalty payments, the companies said Tuesday in a statement.

Qualcomm had accused Apple of violating around 16 patents, and Apple, in turn, imposed further accusations of infringement of about seven to eight patents based on power management.

Earlier in the day, Qualcomm shares surged 23 percent following the disclosure that Apple will pay the chipmaker as part of a settlement.

"Apple and Qualcomm both had more to lose in trial than if they just settled". Qualcomm had said Apple was using its technology without paying for it.

This week, after years of open litigation, Apple and Qualcomm finally chose to bury the hatchet, just as the two were entering a possible new phase of continuing lawsuits in U.S. federal court.

Numerous company's customers will attest that the quality of Apple's wireless chipsets in the iPhone and iPad have declined substantially since the company switched entirely over to Intel baseband processors in late 2018, with the introduction of the iPhone XR, iPhone XS and iPhone XS Max.

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The interesting thing is that Intel announced it was pulling out of the mobile 5G business *before* the settlement.

But while LTE baseband performance and reliability is important, the real key developments are going to occur over 5G. The companies said their litigation around the world will be dismissed, but didn't disclose details of the payments or fees. We have the likes of Samsung Galaxy S10 5G version, Huawei Mate X, OPPO Reno 5G version, Xiaomi MIX 3 5G version, ZTE AXON 10 Pro, Lenovo Z6 Pro, and other 5G flagships.

If Intel had failed to provide Apple with 5G chips in a timely manner, that would have put Apple in an untenable position.

Apple's iPhones earlier used only Qualcomm's modem chips.

Regardless, this is all in the past and Apple can now move forward.

"In the USA, around 5G it's Qualcomm's world and everyone else is just paying rent", said Dan Ives, an analyst with Wedbush Securities. And Apple's customers can now breathe a collective sigh of relief that this unfortunate and counterproductive period of the company's history is finally over. Talk Back and Let Me Know.