Apple says it wanted to use Qualcomm modems in the iPhone XS, XS Max and XR – but Qualcomm refused to sell them after Apple sued licensing practices. "In the end, they would not support us or sell chips," Apple's chief operating officer Jeff Williams said today in his statement to the US Federal Trade Commission as discovered by CNET . Apple had to fall back on Intel's LTE chips instead.
Qualcomm is currently in a lawsuit sued for applying monopolistic practices, including unusually high royalties, refusing licenses to other chip makers, and pledging to customers such as Apple if used exclusively by Qualcomm chips.
While it initially appeared that Apple had used Intel modems for a combination of defiance and competition reasons, Apple said in the courtroom that it did not. According to Williams, Apple originally planned to split the latest modem order between Qualcomm and Intel. It was only for Intel to deliver all the modems after Qualcomm refused to sell.
Dependence on Intel could also hurt Apple's chances of bringing a 5G iPhone fast Intel's 5G chips are not expected until 2020. Intel's LTE modems are also known to be slower than Qualcomm's. Back then, when Apple was procuring both Qualcomm and Intel modems for its phones, the company had to adjust the speeds of the Qualcomm modems so that one iPhone had no higher speeds than the other.
Apple has also communicated the price Qualcomm modems paid: $ 7.50 per device, says Williams. That's five times more than what Apple wanted to pay-just $ 1
The conflict began in 2017 when Apple sued Qualcomm for unfair licensing conditions. Qualcomm disagreed saying that Apple had violated its patents and shared information with Intel. In October 2018, Qualcomm said Apple owes him $ 7 billion in royalties. Since then, Qualcomm has fought international courts in Germany and China and successfully obtained bans on older iPhones, which are sold in both countries. Apple had to pull iPhone 7 and iPhone 8 in Germany and issue a software update for iPhones in China to bypass a ban on most iPhones except the latest.