Apple is ready to exclude Qualcomm components from future iPhones and instead rely on Intel for the parts. The move is the latest development in Apple's and Qualcomm's fierce litigation over royalties. ( Don Emmert | AFP / Getty Images )
Apple's relationship with Qualcomm comes to a bitter end. On a recent profit call, Qualcomm CFO George Davis confirmed that the Cupertino brand intends to separate their modems from future iPhones.
Apple will instead rely on other companies to further develop the component. While Qualcomm does not mention Intel, it is the only other vendor of this component for Apple's smartphones.
"We believe that Apple intends to use only the modems of our competitors and not our modems at the next iPhone release," Davis said as CNET reports. "We will continue to provide modems for older Apple devices."
Apple is ready to drop Qualcomm
If that's true, that's not surprising. In early July this year, Apple analyst Ming-Chi Kuo said that Apple would give up Qualcomm as the only provider of mobile modems after the legal fallout with the chipmaker.
Apple has used both Intel and Qualcomm modems since the introduction of 4G networks. The latter company has long been aggressive, claiming that its components are faster. Just recently, it demonstrated test speeds for the upcoming Snapdragon 845 chip, claiming that its products are superior to Intel.
How Qualcomm Makes Money
Most of Qualcomm's profits come from licensing smartphone radios and chips to other companies and Apple is one of the biggest customers. However, since 201
Qualcomm has also tried to ban iPhone sales in the United States, but to no avail.
What happens when 5G rolls around?
The relationship between the two companies has turned into nothing but ashes, which could affect Apple significantly as soon as Qualcomm's 5G modems ship later this year. Intel, however, has said that there will be no 5G chips until 2019. There's a chance that Apple will try to calm down on Qualcomm if it's a little behind the 5G move, as the relationship does not seem to be rescuing at the time.
Apple will also explore other Qualcomm components that can be dropped, such as Bluetooth chips and Wi-Fi modems. Generally, however, Apple wants to be as independent as possible. It is even rumored to develop a proprietary chip for MacBooks.
Do you think it's wise for Apple to drop Qualcomm, especially with the upcoming arrival of true 5G? As always, if you have something to share, feel free to unsubscribe in the comments below!
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