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Chipset maker Qualcomm confirmed that Apple intended to use Intel modems in the 2018 iPhones which are expected by the end of this month. The company has made this confirmation during the FY Q3 2018 earnings call on July 26. The same was also reported by Apple analyst Ming-Chi Kuo at the starting of this year. However, Qualcomm has also mentioned that it will continue providing modems for Apple legacy devices.
"Despite lower Apple business, both quarter over quarter and year over year, you're seeing strength in the 700 and 800 tiers in China in the chip business, and that's actually really moderated what otherwise would have been a more difficult margin story," said Qualcomm.
During the earnings call, Qualcomm has also said that it expects litigation expenses to be similar in the next quarter because the against Apple is still continuing.
Last year in November KGI analyst came up with a report which claimed that the 2018 iPhone models will use a faster modem from Intel called XMM 7560.
This might be the done because of the patent infringement and royalty dispute between Apple and Qualcomm. Apple filed a lawsuit against Qualcomm saying that the company has been charging royalties for technologies they have nothing to do with.
Later Qualcomm also filed a lawsuit in China against Apple, seeking to halt the manufacture and sale of Apple Inc's iPhones in the country. Qualcomm has reportedly said that Apple is in violation of three non-standard essential patents. The patents are said to cover power management and the iPhone's Force Touch feature.
However, in response, Apple has stated that the claims were "meritless," and that it would take great effort to stop its business. The company has suggested that Qualcomm's effort was opportunistic because in many years of ongoing negotiations Qualcomm hadn't brought up the patents and had now issued them just recently.
Let's see where this battle is going to end and who will win the battle of lawsuits. In both, the case any of the company has to face loss in their market.