SoylentNews

takyon writes:

Apple is considering completely switching away from Qualcomm components, such as modems, in future iterations of the iPhone. Intel modems have already been used in some iPhones, and MediaTek is also under consideration:

Apple Inc has designed iPhones and iPads that would drop chips supplied by Qualcomm Inc, according to two people familiar with the matter. The change would affect iPhones released in the fall of 2018, but Apple could still change course before then, these people said. They declined to be identified because they were not authorized to discuss the matter with the media.

The dispute stems from a change in supply arrangements under which Qualcomm has stopped providing some software for Apple to test its chips in its iPhone designs, one of the people told Reuters.

The two companies are locked in a multinational legal dispute over the Qualcomm's licensing terms to Apple.

Qualcomm told Reuters it is providing fully tested chips to Apple for iPhones. "We are committed to supporting Apple's new devices consistent with our support of all others in the industry," Qualcomm said in a statement.

Apple and other companies are suing Qualcomm over licensing fees. Apple has had similar hardware-level disputes with Samsung in the past. Apple designs its own ARM chips but has to have them manufactured by Samsung or TSMC.

Also at Bloomberg and 9to5Mac.

Original Submission

takyon writes:

Intel has announced that it will speed up the launch of its 5G modem "by more than a half-year". It will have peak speeds of up to 6 Gbps:

2019 is shaping up to be a big year for 5G, and Intel — one of tech's biggest mobile players — has finally announced its plans for the next-generation network in the form of its new XMM 8160 5G modem. The XMM 8160 modem is set to be released to manufacturers sometime in the second half of 2019, with the first devices using the chip coming in early 2020.

Intel has big ambitions for the XMM 8160 5G. It envisions using it across phones, PCs, and broadband hubs, with peak speeds of up to 6 gigabits per second. The modem will support both the standalone and non-standalone specs for the 5G NR (New Radio) standard, as well as legacy support for 4G, 3G, and 2G networks all in one chipset. Additionally, Intel says that the modem will support both millimeter wave (mmWave) spectrum as well as lower-band parts of the spectrum.

Qualcomm's Snapdragon X50 5G NR modem will be available to device makers that want to introduce 5G support in 2019.

Also at EE Times and Engadget.

Previously: Apple Could Switch From Qualcomm to Intel and MediaTek for Modems
Intel Announces Development of 5G Modems (Due in 2019)

Related: Intel Integrates LTE Modem Into Custom Multi-Chip Module for New HP Laptop

Original Submission

Submitted via IRC for Bytram

A billion-dollar question: What was really behind Qualcomm's surprise ten-digit gift to Apple?

The chip industry's strong-arm tactics have been laid bare this month in the anti-trust legal battle brought by America's Federal Trade Commission (FTC) against Qualcomm.

[...] Qualcomm had sought to hide the fact that it paid $1bn to Apple to secure a five-year exclusive agreement with the company to introduce its cellular broadband modem into the iPhone. Even the judge at one point wasn't sure whether that fact has been disclosed or not.

The payment is critical in that the FTC claims that it proves Qualcomm was using its position as the owner of several "standard-essential patents", or SEPs, on communications technologies to cut deals it would never have been able to negotiate otherwise.

Qualcomm has refused to license that technology to its competitors and, since the patents are critical for smartphones, has used that position to force companies into signing contracts that they would never agree to otherwise, i.e. it is using its monopoly position to distort the market and is damaging competition. That's the FTC's case.

But Qualcomm paints the payment quite differently: it says that Apple insisted on the $1bn payment as an "incentive" and to cover the costs of switching to its radio modem chips from Infineon to Qualcomm in its new phone designs.

Such payments are apparently relatively common in the industry but Qualcomm CEO Steve Mollenkopf admitted in court that it was far bigger than normal. As Mollenkopf tells it, Qualcomm only pushed to become a sole supplier of chips to Apple after that $1bn incentive was insisted upon in an effort to recoup such a massive outlay. It wasn't, he claims, an effort to shut out rivals.

[...] The FTC wants to be able to force Qualcomm to license its SEPs (standard-essential patents) to competitors at a reasonable rate: something that it says would force greater competition into the market and remove Qualcomm's monopolistic hold.

It's not clear yet whether the FTC has managed to make a strong enough case but truth be told it doesn't look good for Qualcomm. In the end, it may all revolve around how the court decides to view the fact that it paid Apple a billion dollars to get its chips into iPhones. ®

Original Submission

upstart writes:

Submitted via IRC for SoyCow1984

Apple's internal hardware team is working on modems now, likely to replace Intel

Apple will design its own modems in-house, according to sources that spoke with Reuters. In doing so, the company may hope to leave behind Intel modems in its mobile devices, which Apple has used since a recent falling out with Qualcomm.

Qualcomm forces Apple to stop selling iPhone 7 and 8 in Germany According to the sources, the team working on modem design now reports to Johny Srouji, Apple's senior vice president of hardware technologies. Srouji joined Apple back in 2004 and led development of Apple's first in-house system-on-a-chip, the A4. He has overseen Apple silicon ever since, including the recent A12 and A12X in the new iPhone and iPad Pro models.

Before this move, Apple's modem work ultimately fell under Dan Riccio, who ran engineering for iPhones, iPads, and Macs. As Reuters noted, that division was heavily focused on managing the supply chain and working with externally made components. The fact that the team is moving into the group focused on developing in-house components is a strong signal that Apple will not be looking outside its own walls for modems in the future.

In recent years, Apple has been locked in a costly and complex series of legal battles with Qualcomm, the industry's foremost maker of mobile wireless chips. While Apple previously used Qualcomm's chips in its phones, the legal struggles led the tech giant to turn instead to Intel in recent iPhones.

Late last year, Apple announced that it would greatly expand hiring in San Diego, where Qualcomm is based. All of the areas where Apple announced plans to build out new campuses or launch major hiring initiatives appeared to be chosen because of their large pools of high-skilled workers in certain fields that Apple could potentially poach from competitors like Qualcomm.

Original Submission

takyon writes:

Pictured: Intel and Qualcomm to offer 5G Modules for M.2 Slots

Last week we reported on that Fibocom, an Intel partner, had announced a new M.2 module featuring the Intel XMM8160 5G modem to be used in CPEs as well as upcoming PCs and laptops. During the Mobile World Congress show, we actually saw this M.2 module on the Fibocom booth, but to our surprise, we also saw a similar M.2 module for Qualcomm's X55 modem over at the Qualcomm booth.

These modules fit the widest possible M.2 standard, coming in at 30mm wide, which is 8mm wider than the storage based drives we normally see in this form factor. When looking at the Fibocom module first, it was unclear why the module had to be this wide – surely the modem as not 30mm wide, I thought. At the Fibocom booth, we also got hold of a specification list, confirming that the module was to support both SA and NSA networks, and also cover both 5G in the mmWave bands as well as sub 6 GHz.

[...] The unit will support 2x2 MIMO, 4x2 MIMO, and 4x4 MIMO modes for download, but only 2x2 MIMO for upload. The 4x4 MIMO download mode will only be applicable on bands 1, 2, 3, 4, 7, 25, 30, 34, 38, 39, 40, 41, 42, 48, 66, n77, n78, n79. The unit also integrates support for GPS, GLONASS, Beidou, and Galileo. Drivers will be available for both Windows 10 and Linux.

Coming soon... to every new laptop.

Original Submission

martyb writes:

Intel Quits 5G Modem Business Hours after Apple Settles with Qualcomm:

Intel says it is canceling a line of smartphone 5G chips that had been slated for 2020 launches. The announcement comes on the same day Apple announced a wide-ranging settlement with Qualcomm over patent issues.

Qualcomm has long been a dominant player in the wireless chip business for smartphones. Apple worries about becoming too dependent on a single supplier. So in recent years, Apple has encouraged Intel to expand its wireless chip offerings and offered Intel a significant share of its business for 4G chips in the iPhone.

Then last year, as Apple's legal battle with Qualcomm heated up, Intel became Apple's sole supplier for 4G wireless chips in the iPhone. Intel additionally was working to develop 5G chips for Apple to use in future versions of the iPhone. But recent reports have indicated that Intel was "missing deadlines" for the wireless chip that was slated to go into the 2020 model of the iPhone.

[...] If Intel had failed to provide Apple with 5G chips in a timely manner, that would have put Apple in an untenable position. The iPhone's competitors would be able to offer 5G capabilities using Qualcomm chips, while Qualcomm could have denied Apple access to 5G chips as long as the patent battle continued.

[...] Still, it's not clear whether Apple's settlement with Qualcomm forced Intel to leave the 5G market or whether Intel's impending exit from the 5G market forced Apple to settle with Qualcomm. It's likely that the causation ran a bit in both directions.

There are other handset makers as well as other kinds of devices that would use 5G so I would be surprised if Intel gave up entirely on the market.

Original Submission

martyb writes:

Qualcomm Will Pocket Almost $5 Billion from Apple Settlement this Quarter:

Qualcomm will make nearly $5 billion in the current quarter from the settlement of its licensing dispute with Apple.

During its quarterly earnings report on Wednesday, the mobile chipmaker said it will record revenue of about $4.5 billion to $4.7 billion from Apple in its third fiscal quarter, which ends in June. That includes a cash payment from Apple and the release of money it had to reserve to pay or refund Apple and the contract manufacturers for certain customer-related liabilities.

Overall, Qualcomm's third-quarter revenue should total $9.2 billion to $10.2 billion, a 65% to 83% jump from the previous year when Apple wasn't paying Qualcomm's licensing fees.

"We believe the settlement is a win for both companies, and we are pleased with the result and pleased to have it behind us," Qualcomm CEO Steve Mollenkopf said during a call with analysts. "We are committed to a strong partnership with Apple."

Apple and Qualcomm last month settled their patent licensing battle, ending a two-year dispute the day after their trial kicked off in San Diego. The two sides announced the surprise agreement through a joint press release at the same time lawyers were presenting their opening arguments in a courthouse in Southern California. Apple and its contract manufacturers had given their statements, and Qualcomm's head lawyer had nearly finished his remarks when the courtroom buzzed with the unexpected news.

Excluding that benefit from Apple, though, Qualcomm expects its third-quarter revenue to slide from the previous year's $5.6 billion by as much as 16%. It cited a slowdown in the handset market, especially China. Qualcomm expects third-quarter revenue, excluding the Apple payment, to total $4.7 billion to $5.5 billion. Analysts polled by Yahoo Finance expected sales of $5.08 billion.

Know when to hold 'em, know when to fold 'em.

Original Submission

Fnord666 writes:

In 2005, Apple contacted Qualcomm as a potential supplier for modem chips in the first iPhone. Qualcomm's response was unusual: a letter demanding that Apple sign a patent licensing agreement before Qualcomm would even consider supplying chips.

"I'd spent 20 years in the industry, I had never seen a letter like this," said Tony Blevins, Apple's vice president of procurement.

Most suppliers are eager to talk to new customers—especially customers as big and prestigious as Apple. But Qualcomm wasn't like other suppliers; it enjoyed a dominant position in the market for cellular chips. That gave Qualcomm a lot of leverage, and the company wasn't afraid to use it.

[...] Last week, a California federal judge provided the FTC and Apple with sweet vindication. In a scathing 233-page opinion [PDF], Judge Lucy Koh ruled that Qualcomm's aggressive licensing tactics had violated American antitrust law.

[...] "Qualcomm has monopoly power over certain cell phone chips, and they use that monopoly power to charge people too much money," says Charles Duan, a patent expert at the free-market R Street Institute. "Instead of just charging more for the chips themselves, they required people to buy a patent license and overcharged for the patent license."

Now, all of that dominance might be coming to an end. In her ruling, Koh ordered Qualcomm to stop threatening customers with chip cutoffs. Qualcomm must now re-negotiate all of its agreements with customers and license its patents to competitors on reasonable terms. And if Koh's ruling survives the appeals process, it could produce a truly competitive market for wireless chips for the first time in this century.

Source:
https://arstechnica.com/tech-policy/2019/05/how-qualcomm-shook-down-the-cell-phone-industry-for-almost-20-years/

Original Submission