Apple & Qualcomm settles patent dispute as Intel quits 5G baseband R&D

There has been a long-standing patent dispute between Qualcomm and Apple. While it appeared as though there is no way back for both companies, Apple’s desire for a 5G chip and the lack of viable options in the market meant that it had to go back to Qualcomm. Today, Apple and Qualcomm announced that the two sides have reached an agreement and they have abandoned the pending lawsuits. In addition, both companies signed a six-year agreement.

At the same time, Intel announced its withdrawal from the 5G modem business. The exact reason for Intel’s withdrawal is not far fetched. The official announcement of Intel is indeed for commercial reasons. Intel CEO, Bob Swan, has this to say concerning the company’s withdrawal

“We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business, it has become apparent that there is no clear path to profitability and positive returns”

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As one of the few remaining players in the industry, Qualcomm believes that 5G chips must have excellent performance. In addition, 5G chips need to support 2G/3G/4G multiple modes. Without the accumulation of 2G to 4G communication technology, it is impossible to directly carry out 5G research and development. Presently, Qualcomm has invested hundreds of millions of dollars in R&D expenses in the field of 5G chips. In addition to R&D expenses, the team has also expanded continuously.

Recall that after the lawsuit between Qualcomm and Apple started, the latter dropped Qualcomm for Intel’s chips. However, Intel’s inability to produce the modems on time meant that Apple was left with no choice but to settle with Qualcomm. With this current report, Apple is now on track to unveil a 5G iPhone by 2020.