Apple says Qualcomm refused to provide modem chips for last year's iPhones

Apple says Qualcomm refused to provide modem chips for last year's iPhones

Apple says Qualcomm refused to provide modem chips for last year's iPhones

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. The revelation was made by the chief operating officer at Apple, Jeff Williams in his testimony to the US Federal Trade Commission.

He added that Apple had looked at using Intel chips for the iPad Mini 2 in 2013 but abandoned the idea because it would be required to forfeit those rebates.

Qualcomm was the sole supplier of modem chips for the 2011 iPhone 4S up to the iPhone 6S/Plus in 2015.

In October 2017, however, Qualcomm said it had already "tested and released to Apple", modems that could be used in the new iPhones.

At a federal courthouse in San Jose, California, Mollenkopf testified that Apple demanded the $1 billion without any assurance of how many chips it would buy, which pushed the chip supplier to pursue an exclusivity arrangement in order to ensure it sold enough chips to recover the payment.

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Qualcomm is now under investigation on charges of refusal to license patents to other manufacturers of processors and the promise of transactions with such clients as Apple, if they would only use Qualcomm's chips. While Qualcomm has sued Apple for certain IP violations, the chipmaker is in the dock for having agreed to pay $1 billion as an incentive to Apple Inc if it desisted from using any other chip on its devices, mainly the iPhones.

Qualcomm Lawsuit Against Apple continues to be the focus as the battle reached China now. This is not the first time Qualcomm is facing such suit. "We are committed to supporting Apple's new devices consistent with our support of all others in the industry", the chipmaker said in a statement at the time to Bloomberg News. "We wanted both Qualcomm and (Intel) in the mix", Blevins said.

How much was Apple paying Qualcomm? Here, the team will aim to prove the royalty payments are justified, such is leadership position Qualcomm has worked up in the segment, and the licensing arrangement is the most beneficial and simplistic way to do business.

The FTC lawsuit has accused Qualcomm of abusing its monopoly to engage in unfair business practices and damaging the competition. Apple has filed an appeal against the ruling. It is reported that Qualcomm will appeal the decision.

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