ATEP429 Qualcomm vs. Apple – what has happened so far

Last week there was a new confrontation between Apple and Qualcomm. While the first day of the grand jury process was used for the jury's appointment, the two companies apparently negotiated behind the scenes. The dispute has finally been settled – worldwide. I would like to use the episode today for a little criticism.

The dispute has been going on for years now, as in many disputes, and it's the same here: in the end, many have forgotten how it started.

The commercial relationship between Apple and Qualcomm

For the most part, the argument concerns modems – Apple has its chips manufactured by subcontractors. The licenses are owned by Qualcomm, the subcontractor manufacturers have to pay a fee to Qualcomm, which in turn charges them to Apple. In addition, Apple must pay directly to Qualcomm licenses, with a focus on the use of various software features. Qualcomm grants group discounts, which the group then limits.

The path to Intel – the beginning of the end

The beginning of the end was Apple's move to source modems from other sources, in the specific case of Intel. In early 2017, the lawsuit began, Qualcomm has retained the discounts. Apple is then complaining – because of this step and high licensing costs.

The withdrawal fee is deducted

In the end, the amount in dispute of several billion dollars, Apple has also accused Qualcomm of unfair trade practices. The patentee made significantly larger discounts when the manufacturers purchased everything from a single source. Thus, the path of competition, as in this case, the transition to Intel, was much more difficult.

Payments withheld and patents broken

As a result, Apple has decided to withhold royalties because of Qualcomm's rebates. Qualcomm took this opportunity and also complained that Apple should use patents and not pay them.

The highest point in Germany

The conflict has gone around the world and many markets have been affected. Although the import controls were discussed on several occasions, the culmination of the dispute finally took place in Germany. At the beginning of the year, a ban on sales was imposed on the iPhone 7, iPhone 8 and iPhone X – but this affected only the Apple stores and the online store.

Apple then changed the models, a few weeks later, they were offered again.

Here you come for the discussion in the forum

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