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News Apple, Qualcomm drop litigation as Intel drops modems

Discussion in 'Article Discussion' started by bit-tech, 17 Apr 2019.

  1. bit-tech

    bit-tech Supreme Overlord Lover of bit-tech Administrator

    12 Mar 2001
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  2. edzieba

    edzieba Virtual Realist

    14 Jan 2009
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    On the one hand, bad news for Intel not winning the bid for the next iPhone. On the upside for Intel, that relieves their packaging capacity pressure from huge numbers of low-margin parts, and should push up their future gross margin (they already have more demand than they can supply, so can eliminate low-margin chip sales in favour of more high margin chips) as sales of current-gen iPhones die down.

    [conspiracy nonsense] Intel announced the shuttering of their entire 5G MODEM program - which from the outside had no sign of ever having actually produced so much as a prototype - immediately upon the suit being settled. While it's possible Intel's poor timing in just happening to decide to drop their 5G program right as the trial started was the impetus for Apple to settle, I'm inclined to think things were the other way around: Apple hired Intel not so much so produce a viable 5G MODEM, but just to have a nominal "you're not the only game in town" competitor to wave in Qualcomm's face. This would be backed up with Huawei's public announcement that they had no communication with Apple on use their 5G MODEMs, an otherwise rather bizarre non-sequitur. [/conspiracy nonsense]
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