Here’s why Apple and Qualcomm face off in court next week with billions of dollars at stake – Phone Arena

This coming Tuesday, the biggest hockey fight in tech history makes its way to a San Diego courtroom. Once again, Apple and Qualcomm get to square off in court, but this time billions and billions of dollars are at stake. According to the Wall Street Journal, there isn’t much of a personal relationship between the CEOs of both firms. As a result of the animosity between Apple’s Tim Cook and Qualcomm’s Steve Mollenkopf, there seems to be no common ground for settlement talks. As one unnamed Apple executive notes, “It’s personal. I don’t see anybody who can bridge this gap.”With that in mind, you have to wonder why Mollenkopf told a CNBC audience last November that Apple and Qualcomm were “on the doorstep” of resolving their issues. Cook doesn’t see why Qualcomm should be allowed to take a 5% cut of the sales price of an iPhone. And that brings us to the major issue between the two tech giants, at least in this suit. Apple says that Qualcomm asks too much to license its chips, and Qualcomm says that Apple owes it a ton of cash because it stopped paying royalties to the chip maker. No one could foresee this acrimony between the two firms growing when Qualcomm was the lone supplier of modem chips for the iPhone from 2011-2015. In 2016 and 2017, Intel and Qualcomm shared this business. By January 2017, Apple filed its first suit against Qualcomm, and by 2018 Intel was the sole supplier of modem chips for Apple’s handsets. Since Intel won’t have its 5G modem chips ready to ship until later this year at the earliest, a 5G iPhone isn’t expected until next year. Apple is reportedly designing its own 5G chip for use as soon as 2021.Back before the original iPhone launched
Read More