The relationship between Apple and Qualcomm has become “much more natural” following the settlement of all legal disputes between the two companies. This was revealed by Qualcomm’s CEO Steve Mollenkopf in an interview with Bloomberg.
Apple and Qualcomm were engaged in an intense legal battle after an FTC complaint said that Qualcomm forced Apple to use its modem inside iPhones. This led Apple to sue Qualcomm for $1 billion which then snowballed into a multi-billion dollar lawsuit between the two companies. Apple also stopped using all Qualcomm products and modem inside its devices and switched to Intel modem for iPhones.
However, with Intel engineers falling behind on their promised 5G modem development timeline, Apple ultimately decided to settle matters with Qualcomm by allegedly paying $4.7 billion and signing a six-year licensing agreement and a multiyear chipset supply agreement.
During the course of their legal battle, things got really rough between the two companies and they called out each other multiple times. However, now that things have settled, Qualcomm’s CEO Mollenkopf says that the relationship between the two companies is “much more natural” now. The discussion is now more about products and how they could be launched as fast as possible.
The CEO also details in the interview as to how the COVID-19 pandemic in China affected sales as they dropped dramatically in February. Surprisingly though, they also rebounded pretty quickly and in about five weeks, they were back to nearly the same level as a year ago.
Apple is going to use Qualcomm’s 5G modem inside its iPhone 12 lineup due to launch later this year. Despite things being a lot more natural between the two companies, Apple is still working on its in-house modem which is rumored to make an appearance inside one of its products in 2022.[Via Bloomberg]