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Apple's chief operating officer, Jeff Williams, said his company wanted Qualcomm's modem chips to be placed on the latest Xs, XS Max and XR phones. Monopoly against.
In his testimony before the US Federal Trade Commission, Williams said Apple's goal was to get modem chips from two sources: Qualcomm and Intel, but Qualcomm refused to sell, forcing his company to request the supply of all Intel parts. This will affect the company in the future, especially since the launch of phones with 5G technology that fifth generation Intel has not yet reached, contrary to what Qualcomm had announced by the end of the year.
Williams explained that the amount paid by the company as a loyalty scheme for each modem rose to $ 7.5, but that he only wanted to pay only $ 1.5 per modem, which means that Qualcomm was worth five times the amount paid by Apple (loyalty system for each phone sold). Williams, however, reiterated his company's lack of options: "We had to be excited, if we sued them we would never have been able to get them." But Apple seems to have opted for the toughest solution that that is, to plead the case before Qualcomm.
In recent years, sales of iPhone phones have exceeded hundreds of millions. Therefore, paying $ 7.5 per phone is equivalent to exceeding the money paid to Qualcomm Technologies for $ 1 billion, which Williams compared to a "shotgun in the head."
For its part, as proven by Williams' testimony, Apple wanted to pay a loyalty fee for each modem – equivalent to 5% of its price – but Qualcomm wanted to get 5% of the value of each phone for the iPhone – which, according to Williams, was not logical, but in the end it was agreed to $ 7.5 for each device. If Apple sees this as a monopoly and exploitation, Qualcomm believes that it has the right to control its own technology in the same way as other companies.
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