On Tuesday, Apple and Qualcomm had a two-year bitter legal battle. Shortly thereafter, Intel Corporation said that they are moving away from the 5G modem business on the smartphone. And this whole drama was staged when smartphone companies are moving towards 5G technology.
Apple quoted the US Federal Trade Commission as saying that Qualcomm was using their patent license to monopolize the modem chipset business, which could connect devices like iPhones to the wireless data network. On the other hand, Qualcomm claims that Apple used their valuable technology without paying any money. As a result, Apple announced the use of Intel's supplied chips after the Qualcomm chip in their spare parts.
However, Apple and Qualcomm have finally announced to suspend all the cases, signing a license agreement with Apple Qualcomm for six years and wishing to buy Qualcomm's chip. In a few hours, Intel said that they are moving away from the business of the modem chip.
What is the 5G? 5G is the fifth-generation wireless network technology that will be 100 times stronger than the current 4G network. This technology will start in the United States, China, South Korea and more in some places this year, but not expanding before 2020. Special type of modem chips will help to connect devices to this network.
Who are the rivals in 5G technology?By Tuesday, five companies had planned to make their 5G modem chips. They are Qualcomm, Intel, MediaTek Inc., Huawei Technologies and Samsung Electronics Company Limited. Samsung and Huawei are just making chips for their own smartphones.
Why is Apple thinking about 5G? Apple has been announcing that Samsung will release 5G technology in the market from competing companies such as Samsung, which could put pressure on Apple to keep pace with its features. Many SIM companies are making big investments for the 5G network, from which the 5G market is seen as an attempt to make everyone's interest.
Can Apple bring 5G phones this year?The company has to do unthinkable. It may take a few months to test whether the new modem is useful on mobile. According to Apple's culture, since last year, this experiment was about to begin. But their main chip maker is still not ready to make 5G modem chips.
Will Apple lose the market without 5G phones? Apple was lagging behind 4G technology and did not pay any price. Apple and other companies, including Samsung, used their mobile phones in 2010 with the introduction of 4G technology in the market, where Apple was using it in 2012 after spreading worldwide. Many analysts are convinced, Apple may have been walking the same way this time.
Apple Qualcomm chip needed?Intel's chief chip provider Intel said they will not be able to offer any 5G modem chips before 2020, which means Apple will not be able to market any 5G phones before 2021. Then this slowdown will have a bad effect on Apple in the market. On the other hand, Qualcomm is ready to supply its second generation 5G modem chip, which can meet the needs of Apple.
Apple will use only Qualcomm chips? Of course not. When Apple and Qualcomm signed the contract, Apple has already started to innovate their own modems, and in the court last year, they said that their talks with MediaTek and Samsung were suspended.
After the announcement of the modem to move out of business, Intel's share price increased?
Intel's chief Bob Swann told investors that the demand for the modem chip in the past was not so much like the CPU chip. There are more ways to do Intel business from 5G. Selling programmable chips like CPU sold at 5G network base stations and network equipment makers.
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