Qualcomm and Apple won’t be involved with each other any longer. The relationship is over, according to Qualcomm CFO George Davis. Following a tumultuous period in which the companies have gone back and forth in the courtroom, Apple has decided to spend its money on someone else.
The new iPhone models are expected to ship with Intel-made modems. It’ll be one of the rare times that Apple hasn’t split an order between multiple suppliers, but Qualcomm engaged in a dispute with the Cupertino-based company that put it on the outs.
As the two sides are engaged in a dispute over patent infringement and royalties, Qualcomm confirmed it lost Apple’s business. Davis, who’s been at Qualcomm since 2013, said this:
“Apple intends to solely use our competitor’s modems rather than our modems in its next iPhone release.”
While the competitor isn’t explicitly named, everyone knows he is referring to Intel. Apple’s been submitting an increased amount of orders as its relationship with Qualcomm continued to sour.
This week hasn’t been an easy stretch for Qualcomm. The company also announced it would no longer acquire NXP Semiconductors after facing pushback from Chinese regulators. Because the deal fell through, Qualcomm will be paying a $2 billion cancelation fee. In late 2017, Broadcom attempted to purchase Qualcomm but was denied the opportunity by the U.S. government.
Based on everything we’ve seen lately, Qualcomm is stumbling to figure out its future. Yet there remains to be a strong commitment to 5G connectivity. Many of the hardware manufacturers in the mobile industry also continue to rely on Qualcomm for Snapdragon chips.
Meanwhile, Apple could even add another up-and-coming supplier if necessary. There was a report a few weeks ago revealing that MediaTek is trying to woo Apple for future iPhone modems. But, for now, it seems that Apple believes Intel can handle its current demands alone.
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