Apple vs Qualcomm vs Intel: What is 5G, who are the players and how top tech cos battled each other
Apple Inc and Qualcomm Inc on Tuesday settled an acrimonious two-year legal dispute. Shortly afterwards, Intel Corp said it will exit the smartphone modem chip business. The entire drama played out as the mobile phone industry prepares to shift to a technology called 5G. Echoing complaints from the U.S. Federal Trade Commission, Apple had alleged that Qualcomm used its patent licensing business to keep a monopoly on modem chips that connect devices like the iPhone to wireless data networks. Qualcomm insisted that Apple was using its valuable technology without proper payment, and Apple later dropped Qualcomm`s chips in favor of those from Intel. In the end, Apple and Qualcomm ceased all litigation, with Apple signing a six-year licensing deal with Qualcomm and also agreeing to buy Qualcomm chips. Hours later, Intel said it was getting out of the modem chip business.
WHAT IS 5G?
5G is a new network technology for wireless communications that could be up to 100 times faster than current 4G networks. The networks are coming on line in the United States, China, South Korea and other places this year, but probably will not be widespread until 2020. Modem chips connect devices like phones to these networks. (Reuters)
WHO ARE THE PLAYERS IN 5G?
WHY DOES APPLE CARE ABOUT 5G?
WILL APPLE HAVE A 5G PHONE THIS YEAR?
WILL APPLE LOSE MARKET SHARE WITHOUT A 5G PHONE?
WHY DOES APPLE NEED QUALCOMM'S CHIPS?
Apple`s only current modem supplier, Intel, said that it would not have a 5G chip ready until 2020, which could have pushed Apple`s launch of a 5G iPhone into 2021 - a long enough delay that it could hurt sales. Qualcomm, on the other hand, is preparing to ship its second generation 5G chip and can meet Apple`s needs with its current products. (Reuters)
WILL APPLE EXCLUSIVELY USE QUALCOMM'S CHIPS?
WHY DID INTEL SHARE RISE AFTER IT EXITED THE MODEM BUSINESS?
Intel Chief Executive Bob Swan has told investors in the past that modem chips are not likely to fetch the same high margins as its CPU chips. Intel has plenty of other ways to make money from 5G, like selling CPUs to makers of base stations and so-called programmable chips to makers of networking gear. (Reuters)