Recently, Mobile giant Apple and Qualcomm ended a dispute regarding Qualcomm’s processors’ cost which Apple uses in its mobile handsets. Previously, a spokesperson of Apple had accused the processor manufacturing company of overcharging for their product. Due to settlement, Apple was bound to pay a considerable amount to Qualcomm.
During the settlement, both of the companies have agreed on a global-patent which has a limit around 6 years. Furthermore, another deal has been signed in which Qualcomm will manufacture phone parts for Apple in upcoming years. Back in 2016, iPhones have started to use chips manufactured by Intel but now the mobile giant has switched once again to its old partner.
After the news was made public, a spokesperson of Intel stated that the company will not manufacture 5G modems for mobile phones. Due to present patch-up between the two giants, Qualcomm had got a considerable hike of 23% in its shares.
During a press meet, Ben Wood said that the present settlement is a huge achievement for Qualcomm. He also said that the present settlement has also taken place since there was no other option left for Apple. Mr. Wood further stated that Intel wasn’t a profitable option for Apple as it was lacking to provide genuine 5G modems to the mobile manufacturing giant.
Few analysts are also stating that the present dealing is very beneficial for Apple as it will help the company to manufacture excellent smartphones for its users. They also said that due to the present settlement between Apple and Qualcomm it is Intel who has to pay the price.
The settlement is also beneficial for Apple as Qualcomm has several patents under its sleeves which are very useful in making a great handset. Previously, Apple had been accused by Qualcomm for paying less fees for the technology which the mobile manufacturing company is using.