Global Thread

How 10 years old rivals turned promising friends

Why would Apple, the world’s first trillion-dollar company, back down? The answer has to do with 5G

Lets put the full stop we can not put billion of dollars on stake. The money can be used in a better way than lawsuits certainly. Tech giant Apple and Largest chip maker ended up their all on going cases.

Well its not something unusual in recent times as we have seen such transforming relations among corporate such as Uber bought Crime in UAE. We have seen Such rivalries turning in love stories in Banking sector, moreover Jazz taking on UAE based telecom company so on and so forth.

This time the thought travelled through Global tech giant which was lingering since approximately 10 years among Apple and Qualcomm. Both of them stayed stubborn globally and continued in the same manner but things never remain same perhaps during last appearance in court when they revealed not to behave same in future. Apple and Qualcomm have duelled on three continents over the division of billions of dollars of smartphone profits and even how much consumers pay for their phones.

On Tuesday, just as a trial had begun in a federal courtroom in San Diego over a suit Apple had filed against Qualcomm, the two companies said they had essentially made up.

The surprise settlement brings an end to a long-running battle over the cost of the processors that phones use to connect to mobile networks.

Apple accused chip-maker Qualcomm of overcharging, a claim the firm denied.

The settlement includes a payment from Apple to Qualcomm, but the firms did not disclose its size. 

The two firms have also agreed a six-year global patent licensing agreement and also agreed for Qualcomm to supply parts to Apple for multiple years

The companies, one the maker of iPhones and the other one of the largest providers of mobile chips, said they had agreed to dismiss all litigation between them worldwide. They added that they had reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

In a surprise move, Apple settled its patent lawsuit with Qualcomm this week. The settlement sent Qualcomm stock soaring over 30%, and it marked a big defeat for Apple. The company will now have to pay the IP licensing fees it was suing Qualcomm to avoid.

Why would Apple, the world’s first trillion-dollar company, back down? The answer has to do with 5G.

Qualcomm is the leading producer of 5G chips, which Apple will need if it wants to bring the iPhone to 5G networks. Apple has no other immediate options for these chips either—shortly after Apple’s settlement, Intel announced it was scrapping its 5G plans, and buying from Huawei, the other major 5G chip manufacturer, could introduce political and security risks for Apple.

All of this turmoil highlights just how important 5G is for the future of mobile technology.

While 4G networks are powerful enough to, say, stream Netflix on the bus, more ambitious technology—like Nissan’s plan to put a three dimensional, AR-powered driving assistant in your passenger seat—will require 5G networks. Google’s Stadia, which streams graphically intense video games, is also expected to be an early beneficiary.

The future of mobile technology, it seems, is going to happen in 5G. And as of now, if you want to manufacture a 5G phone, there are only a few companies to go through. That means makers like Qualcomm and Huawei are effectively the gatekeepers for a new generation of mobile technology.

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