When two companies are locked in legal disputes, it’s never a good idea to keep doing business together if you can help it. To that end, a new report indicates that Apple may be reducing its reliance on Qualcomm for iPhone modems and giving the orders to Taiwan’s MediaTek.
According to a report from DigiTimes, MediaTek “has a chance” at winning the orders for Apple’s iPhone modems in 2018. Apple already transferred half of its modem orders from Qualcomm to Intel in 2017 following the lawsuit Apple filed in January over unfair royalty calculations.
MediaTek reportedly meets Apple’s three key criteria for choosing a new supply chain partner: leading technological competitiveness, comprehensive product blueprints, and reliable logistic support.
Should this deal go through, it’s also possible Apple and MediaTek would cooperate on future products such as smart speakers and wireless charging devices. All of this could be important as the Qualcomm issues may disappear in the not-to-distant future as the company is currently the target of a potential hostile takeover by Broadcom at a deal said to be valued at over $100 billion dollars.
Until such a deal happens, Apple needs supply partners, and if MediaTek is able to deliver in this pinch, it could go a long way to a longer, more lucrative partnership between the two companies.
It should be noted that DigiTimes has a spotty track record when it comes to Apple device rumors, but it does fare better when it comes to stories about Apple’s overall supply chain.