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Qualcomm Refused Apple to Provide Chips for 2018 iPhones

Intel Corp. modems has been used in 2018 iPhones

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After Apple sued the Qualcomm Inc in 2017 over the Dispute the Qualcomm Inc. refused to provide cellular modems for the 2018 iPhones according to Chief Operating Officer of Apple Jeff Williams.

According to Jeff Williams Testimony in Federal Trade Commission, the Qualcomm forced Apple to use Intel Corp. modems in the latest flagship phones of Apple like iPhone XS, iPhone XS Max, and iPhone XR which were released in September and October of 2018.

According to Jeff Williams, Apple tried to negotiate with Qualcomm to provide Apple with chips for the latest iPhones which were released in Sep last year, but the Qualcomm refused to provide chips to the Mobile Manufacturer.

As per the reports, the Qualcomm’s royalty fee of $7.50 per iPhone is too high and impacting the manufacturing cost of iPhones which ultimately increasing the retail price of the smartphones and squeezing the customers.

The government has accused the Qualcomm of misusing its dominant position as the world’s leading chipmaker of smartphone chips to force customers to use its products and making them pay the high patent licensing fees by making high-cost devices.

According to Apple, The company prefers to source components from multiple hardware providers. This helps Apple to drive down the costs, but also provides a contingency plan if there is an issue with one of the suppliers and prevent the manufacturing blockage issues.

However, The largest chipmaker Qualcomm said it had already “tested and released to Apple,” modems that could be used in the latest iPhones which were released in 2018.

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