Qualcomm and Apple end all litigation; Intel exits 5G modem market

Sean Kinney | April 17, 2019

Qualcomm and Apple end all litigation; Intel exits 5G modem market
Qualcomm and Apple agree to six-year patent and chipset supply: A long-brewing, global battle between Qualcomm and Apple ended yesterday with the two companies agreeing to end all ongoing litigation related to allegations from Apple that Qualcomm took a monopolistic stance with a “no license, no chips” policy related to Qualcomm’s extensive standard essential patent portfolio and pole position in the cellular modem market. Qualcomm previously provided modems for Apple’s iPhones but the Cupertino firm and its contract manufacturers cut off royalty payments. Apple then switched over to Intel modems. As it relates to 5G, Qualcomm has modems, RF front end components and SoCs in-market today, while Intel has yet to ship a 5G modem. Shortly after Apple and Qualcomm announced their accord, which also includes a one-time payment from Apple to Qualcomm and a six-year patent license and chipset supply agreement, Intel announced it will exist the 5G modem business. Intel’s new CEO Bob Swan, in a statement, said the company will focus its 5G-related efforts on cloud computing infrastructure rather than handsets. “In the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns. 5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.” Qualcomm share prices jumped more than 20% on the news, Apple prices were largely flat and Intel was down slightly.

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Traditional IT server configurations, hypervisor environments and storage silos do not work well for modern scale-out applications and open source frameworks such as Apache Spark because they are not optimized for distributed computing. They are optimized for traditional workloads such as email, SQL


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