Close ad

A few days ago we wrote about a major change that will largely affect future iPhones and iPads. After years of wrangling, Apple has (surprisingly) reached an agreement with Qualcomm to settle lawsuits and future cooperation. As it is now gradually coming to light, this move by Apple will be very expensive.

It came out of the blue, although in the end it's probably the best move Apple could have made. It settled with the technology giant Qualcomm, which will supply data modems for Apple's mobile products for the next six years. After the problems with Intel, it seems that everything could be solved. However, it is now becoming clear at what cost.

According to estimates by the American CNBC Network, Apple and Qualcomm have agreed to pay additional license fees in the amount of approximately five to six billion US dollars. That's a thing of the past, from the start of sales of the next devices, which will again have Qualcomm data modems in them, the company will collect an additional $8-9 for each device sold. Even in this case, hundreds of millions of dollars will be involved.

If we look back to when Apple used modems from Qualcomm, then the Cupertino company paid about 7,5 USD per product sold. Given the current climate, Apple has not been able to negotiate the same terms it had before. But this is understandable, because Apple is kind of pushed to the wall and there was not much else left for the company. Qualcomm is certainly aware of this, which logically strengthened their position in negotiations.

Apple should launch the first products supporting 5G networks next year. If the company were to maintain cooperation with Intel, the deployment of support for 5G networks would be delayed by at least a year, and Apple would thus be at a disadvantage compared to competitors. This is probably the most important reason why Apple has decided to straighten out relations with Qualcomm, even if it will be very expensive.

Qualcomm

Source: Macrumors

.