The truth about the conflict between Apple and Qualcomm and its consequences

In recent times, the spotlight has been brought up in the conflict between the "well-known" Apple company, and Qualcomm, "the company specializing in the production of semiconductors and wireless communications, which also produces smart phone processors based on the ARM architecture and the production of the Snapdragon processor, which has witnessed a large turnout in recent times." .

Apple and Qualcomm

On the fourth of last October, the international news agency Bloomberg unveiled the truth about the conflict between the American technology giant Apple, whose official headquarters is in the American city of Cupertino, and the semiconductor giant Qualcomm, which has its official headquarters in the coastal city of Sandiego in southern California as well.


How did the conflict start?

Since the dawn of wireless technology, Qualcomm has maintained a monopoly on patents in the main semiconductor industry used in mobile phones. Since the first iPhone, Apple has relied on Qualcomm in the production of the modem that allows the iPhone to receive data wirelessly, and Qualcomm has received revenues from every iPhone that was sold until its highest revenue reached nearly $ 30 per unit.

But this coexistence changed in 2015 when Apple began to deal with Intel to develop the modem, which was used in some versions of the iPhone 7. Apple's advisor Bruce Sewell told International News Agency Bloomberg, "Apple should provide it with a second source."

This year, the dispute turned into a full-scale war, as Apple filed a lawsuit against Qualcomm, accusing it of blackmailing it and imposing high fees on it because of its use of basic patents monopolized by Qualcomm in a way that disrupts innovation, as well as making licenses more expensive, as Qualcomm pursued a policy of "No license, no chips" This led to an increase in licensing fees to use its own patents, and it also forced the companies that produce phones to pay more fees in order to pressure these companies not to use processors for other companies.

And last July, Qualcomm filed a lawsuit against Apple, claiming that Apple was violating its patents. US World Trade Commission By opening an investigation and imposing a ban on the import of some iPhones produced by Apple in the United States, as these phones are equipped with electronic chips from Intel and thus violate Qualcomm's patents.


Results of the conflict between Apple and Qualcomm

That Apple CEO Tim Cook allied with Samsung against Qualcomm, and it is known that Samsung and Apple have the longest lawsuits in the history of Silicon Valley over patent infringement, but in this war they are allies against Qualcomm.

◉ In 2015 Tim Cook met with Samsung CEO Jay Y Lee who is currently in custody over a bribery case - they met in Idaho to put pressure on the South Korean antitrust organization according to Qualcomm's legal allegations.

◉ In December 2016, the Korean antitrust organization fined Qualcomm $ 853 million.

◉ The following month, the US Federal Trade Commission accused Qualcomm of working on deterrent tactics for its competitors.

◉ This month, the Taiwan Trade Commission decided to punish Qualcomm and fine it $ 773 million for violating the antitrust law. The authority said Qualcomm is carrying out monopolistic practices and has raised 400 billion New Taiwan dollars (13 billion US dollars) from companies in exchange for licensing fees.


The iPhone uses an "Intel X modem" which may make it slower than its competitors

Although Intel's modem gave Apple the courage to ditch Qualcomm, it is not as good as Qualcomm's.

For the iPhone X, Apple chose not to add the GigaByte LTE network technology to Qualcomm, which means that the iPhone X will be slower than its competitors in terms of data transfer speeds.

It is worth noting Gigabyte LTE technology is still a little common technology, and the first phone to support this technology is the Samsung S8, which is an advanced technology of 4G networks and named Gigabyte because the highest connection speed reaches 1 GB per second, while the regular 4G LTE network has a speed between 100 MB and 300 MB.


Did you know that the Apple Watch Series 3 has LTE? Thanks to Qualcomm

Apple Watch Series 3 features GPS + Cellular, a full LTE mobile network, and switches to the mobile network when the watch is away from the iPhone, and thanks to Qualcomm, the Apple Watch is not restricted to the iPhone.


Qualcomm believes that the innovation of 5G technology will make the iPhone X rudimentary in data communication, which could be a painful blow to Apple in this legal war.

Double strikes from Apple and Samsung also severely damaged Qualcomm, in addition to a fine for South Korean regulators, and Apple's refusal to pay dues, which led Qualcomm to lose a quarter of its market value.

◉ Also in July of this year, Huawei, the second largest seller of smartphones in the world, stopped paying financial dues to Qualcomm, following in Apple's footsteps, which led to the decline of Qualcomm's shares in a short period.


We summarize the history of the conflict between Apple and Qualcomm in the dates next:

The battle between Apple and Qualcomm raged in 2017

 

???? January 17, 2017:
The US Trade Commission is suing Qualcomm for forcing Apple to use its chips in its devices.

 

???? January 20, 2017:
Apple filed a billion-dollar lawsuit against Qualcomm, where Apple accused Qualcomm of imposing high fees and royalties on it for its use of technologies and patents.

 

???? January 22, 2017
Apple has filed a full lawsuit against Qualcomm in this regard.

 

???? 25 Jan 2017
Apple has filed two lawsuits against Qualcomm in Beijing, China, and in the first lawsuit, Apple alleges that the chip maker Qualcomm is misusing its market position, claiming about $ 145 million. In the second lawsuit, Apple accused Qualcomm of failing to fulfill its promises to license essential patents at low cost, according to Reuters reports.

 

???? 2 March 2017
Apple launched a new lawsuit against Qualcomm in the United Kingdom.

 

???? 11 April 2017
Qualcomm has sued Apple for breaching the terms of the agreement in their contract.

 

???? 3 May 2017
Qualcomm planned to take revenge on Apple and ask the International Trade Commission to stop sales of the iPhone.

 

???? 6 July 2017
Qualcomm has filed a complaint against Apple with the International Trade Commission for patent infringement.

 

???? 19 July 2017
Apple joins a new lawsuit against Qualcomm filed by suppliers:

  • Foxconn, a multinational electronics manufacturer.
  • Pegatron Corporation, a Taiwanese manufacturer of electronics.
  • Western Corporation, a financial transaction and communication service company.
  • Kampal Corporation, a company that produces laptops, monitors and televisions.

 

???? 21 July 2017
Intel has filed a statement with the ITC claiming that Qualcomm is trying to force it to cancel production of modems for Apple.

 

???? 14 2017سطس XNUMX
The US Securities and Exchange Commission called on Qualcomm to provide more information about the dispute with Apple.

 

???? October 12, 2017
The Taiwan Trade Authority has decided to punish Qualcomm and fine it $ 773 million for violating the antitrust law.

 

???? October 13, 2017
Qualcomm is suing Apple to prevent it from producing and selling iPhones in China.


And the conflict is still going on ... Do you think such conflicts affect smartphones, especially the iPhone? Do companies write the beginning of their end with these struggles? Share your opinion in the comments

Source:

thestar|patentlyapple|bloomberg

25 comment

comments user
ali omer

From the first iPhone, people say Yvonne fails, but it is better and more successful than it was ..

comments user
 MohammedD

I think Apple's fate is like Nokia's 🌚
An arrogant company that loves money more than anything else and is always fighting in court.
I love Apple and I have an iPhone, but Apple has gone too far 😣 and I consider this year to be a failure for Apple
And a year will come if Apple does not do something special, I think it will suffer a lot

comments user
Brooke

Excellent article and beautiful narration
شكرا لكم

comments user
Happy

In fact, I see that Apple and Samsung are the ones who left Qualcomm a whale in the market, even if the orders and sales of these two companies will be, Qualcomm is still a small fish versus the giant Intel, and in all cases, imagine conflicts between major companies that result in competition for the benefit of the customer ,, And we do not know the secret that made Qualcomm savage in this way, maybe Apple provoked it, or Qualcomm was in danger

comments user
Ali Al-Kazem

I feel that Apple will happen to it as it did to Nokia (just a feeling), and I also feel that Qualcomm will beat Apple (also just a feeling)

    comments user
    Humo

    Apple has $ 250 billion in cash
    Impossible fall

comments user
majeed

Excellent article by God

comments user
Amr Yousry

When comparing the iPhone 8 with the Note 8, the result was in favor of the Note in terms of speed and performance, I was shocked 😐 But everything has become clear now !! And now waiting for iPhone X, they will be shocked when they buy the most expensive phone in the world, but it is slower than the Samsung phone, even the feature that Apple has been boasting about until now (speed) is no longer present !! 🙁

    comments user
    branches

    My friend, the speed is only in transferring data and not the speed of the phone in general
    In speed tests, the iPhone XNUMX outperformed all its competitors in terms of data processing

    comments user
    Majid Al-Brahim

    It is true that Apple is generally in the downward path of the last three years in terms of the level of devices and their development .. But what we always hear is that Samsung devices are fast, first you only buy them, and after 6 months of use, problems start, slow down and hang, and if someone has a background on modern Galaxy devices? First

    comments user
    Mahmoud honor

    Your words are correct, and the data speed will not reach in any way one gigabyte, given the considerations of the number of shared phones at this speed. The more phones, the lower the speed.

comments user
Majid Al-Brahim

A beautiful article and an excellent narration of the events and details of the problem, and I believe Qualcomm should have been more diplomatic, flexible and intelligent by dealing with major companies such as Apple and Samsung and cooperating with them and making them friends, allies and partners of success instead of entering into lawsuits and problems that led to them losing a lot as such very successful companies that sell dozens Millions of devices annually are considered an attractive and profitable partner for any company that works with them. It is foolish to lose them and enter into lawsuits and pleadings that may cost them a lot and miss them a lot of profits because of greed and the abhorrent monopoly policy. Thank you for this good article 🌹

comments user
Ali

Oh my God, today I don't have enough money to buy a screen and my worries are reaching the sun, and there are companies that are being hustled around and paying billions, and the most important thing is that they pay it with a smile on their face, haha. Pottery will break itself, God willing. I'm sorry for the flatterers only, who if they flattered themselves with devices that were given to them for free, then flattery would be something logical.

comments user
Rashid Bakhit

What I liked about it was the theft of Apple and Huawei, because you have taken the processors and they did not pay 😂

comments user
Zoom

And all this and we are paying more money for the iPhone X 😡
I mean, the chip in it is cheaper, the device is slower, and its price is more expensive

comments user
Abdallah

Now you understand why Apple's executive vice president of legal affairs has resigned
A headache

    comments user
    Mahmoud honor

    Hahaha. Are right

    comments user
    Zoom

    😄
    👍🏻

    comments user
    Light • O God, forgive my parents and siblings

    😂👍🏻

    comments user
    Happy

    I specialize in this work ,, the word easy headache

comments user
Abdallah

Intel is a big and powerful company and it will definitely improve its modems in order to come close - at least - to competing with that of Qualcomm.
But I personally think that the speed of 300 Mbps is very excellent, but are we really reaching this speed in Arab countries with poor internet? So why do we need gigabits of technology if we are only going to get to it in dreams?
So this conflict is of no interest to us
God bless you

comments user
Light • O God, forgive my parents and siblings

Today morning coincides with an article from a source in Zaman about the new conflict of Qualcomm and Apple, and I wished to see an article explaining the problem from beginning to end
Today appeared, I will see you. I have downloaded the summary, Masha Allah
Thank you very much effort

comments user
$ Kenan $ 💥

I see that Colcom is unnaturally stupid ... although it has a high position in the arena, but I do not know how to think. Honestly, I do not know. I did not try to resist while all its cards are exposed and all right is with Apple .. now it is time to pay the price of its greed, but from my follow-up to Qualcomm I noticed It may not calm down, and it may be hate for Apple here. Apple may not be able to take advantage of Qualcomm’s technologies, especially as it is also working to reach under-screen fingerprint reader technology before Samsung and the fifth generation networks as well .. In general, Qualcomm deserved the slap, and it must now think carefully. It was said that Apple is suing again.

    comments user
    Mahmoud honor

    You are right. The problem is if other companies want to make something, then Qualcomm has a patent on it. They cannot even invent something like it because it monopolizes everything

comments user
Suleiman Mohammed

A monopolistic legal business system for the owner of the invention and the forerunner, and this is one of the effects of relying on external technology
There is no use in these conflicts in my opinion, and Apple, as a company that aspires to the future, is to manufacture its own architectures. It is true that the higher cost, but if the Apple devices are either at the mercy of Intel and its regular processors, or Qualacom and its future and expensive technologies, the solution is to break the monopoly by using its innovative method of manufacturing new and revolutionary processors. This monopoly technology or alternative industry is being washed away from China
But one lesson remains: the innovator is the winner, especially with the commercial and legal systems that support the invention rights
Only 13 billion from Korean companies to Qualcomm is a number worth considering by Apple instead of looking at buying the cheapest processor, i.e. the internal and short-term view. In the long term, Apple can benefit if it puts this issue under its arm to manufacture and sell the rights to the Koreans, which increases the effectiveness of this solution.

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