Qualcomm Refuses to Supply Modem Chips to Apple

Qualcomm, a modem manufacturer, refused to supply its chips for the latest iPhone models after Apple accused it of anti-competitive behavior. It was stated by Apple's Chief Operating Officer Jeff Williams...

Qualcomm, a modem manufacturer, refused to supply its chips for the latest iPhone models after Apple accused it of anti-competitive behavior. It was stated by Apple's Chief Operating Officer Jeff Williams during the trial.

Apple was initially going to buy modems from Intel and Qualcomm to diversify the supplies, but the row between the two companies has forced Apple to abandon these plans and switch completely to Intel LTE.

The situation creates many risks for Apple, as it is known for certain that Intel’s modems are slower compared to Qualcomm’s. Moreover, unforeseen circumstances may affect the release of 5G smartphones that are about to become the hottest trend in the mobile technology world.

Intel’s 5G chips are not expected to come to the market until 2020 at the earliest. Therefore, the release of iPhones providing a qualitatively new level of communication is out of the question until then. All this puts the company in a difficult position.

As part of its testimony, Apple disclosed the modem price: $ 7.50 apiece. Apple’s management found it to be excessively high, which was the reason for the disagreement. According to Williams, Apple had no other way of getting the chips than to refer the matter to the US Federal Trade Commission which will handle the settlement of the dispute.