An Apple vs. Qualcomm Refresher, Apple Extends Qualcomm Supplier Agreement, The WSJ’s Apple Modem Hit Piece
Hello everyone. Today's update will be dedicated to discussing the latest developments in the ongoing feud between Apple and Qualcomm.
We begin with a refresher on how the two companies got to where they are today regarding their multi-year license and chipset supply agreement.
The discussion then turns to Neil’s thoughts on the WSJ’s strange article about Apple’s modem efforts.
Let's jump right in.
An Apple vs. Qualcomm Refresher
(The following snippet was from the November 17th, 2021 daily update. Check out the full update here.)
With the exception of the iPhone 11 line, Qualcomm has supplied modems for at least one flagship iPhone model each year going back to 2011. Before 2011, Apple relied on Infineon chips. (Intel later acquired Infineon’s baseband chip business.) The switch to Qualcomm from Infineon was due to Apple needing a CDMA network-equipped modem for iPhone.
In 2016, Apple shocked many by including Intel modems in iPhone 7 units that used non-CDMA networks (AT&T and T-Mobile). The move was a precursor to Apple suing Qualcomm in 2017, accusing the company of a variety of things. In a nutshell, Apple went after Qualcomm’s business model, not just a few patents, or recovering missing rebates. Apple had been in a weak position, dependent on Qualcomm for its chips with little to no recourse unless it was willing to risk its iPhone and iPad businesses. Intel gave Apple the leverage to go after Qualcomm.
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