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Qualcomm CEO Steve Mollenkopf Shares Thoughts on Apple Deal but Declines to Give Specific Details
Following yesterday's surprise announcement of a settlement between Qualcomm and Apple, Qualcomm CEO Steve Mollenkopf sat down with CNBC to share a few more details about the new agreement between the two companies.
According to Mollenkopf, after "a lot of talking" both between teams and with Apple CEO Tim Cook, Apple and Qualcomm came to an agreement that "both companies like." Qualcomm and Apple are now focusing on getting new products out, such as the 5G iPhone coming in 2020 that Qualcomm will supply chips for.
Each side "found something that was useful" in the deal, and according to Mollenkopf, Apple and Qualcomm "want to work together on products," as evidenced by the multiyear product deal the two signed as part of the settlement.
Part of the agreement between the two companies included a payment from Apple to Qualcomm, but Mollenkopf declined to provide further details on the size of the payment. He also refused to reveal how much Apple is paying Qualcomm per phone.
On the topic of 5G chips for future iPhones, Mollenkopf said that Qualcomm is "excited" and has the "entire team" working to support Apple. Unsurprisingly, no details were given on Apple's product plans or launch timelines for 5G connectivity.
While Apple settled with Qualcomm, Qualcomm continues to face an FTC inquiry into anticompetitive business tactics, which Mollenkopf says is still a risk to Qualcomm. He doesn't believe the Apple decision will impact what the FTC decides.
According to Mollenkopf, after "a lot of talking" both between teams and with Apple CEO Tim Cook, Apple and Qualcomm came to an agreement that "both companies like." Qualcomm and Apple are now focusing on getting new products out, such as the 5G iPhone coming in 2020 that Qualcomm will supply chips for.
And really, if you look at the focus of that energy now, it's very much on, 'Let's get these products out.' You know, it really clears the way for, I think, a much more natural relationship between the two companies. One that we certainly enjoy working on products together. And that's what we're doing now.Apple and Qualcomm have established a "very broad deal" across all of Qualcomm's technologies, which Mollenkopf says is the first direct license that Qualcomm has had with Apple rather than contract manufacturers.
Each side "found something that was useful" in the deal, and according to Mollenkopf, Apple and Qualcomm "want to work together on products," as evidenced by the multiyear product deal the two signed as part of the settlement.
Part of the agreement between the two companies included a payment from Apple to Qualcomm, but Mollenkopf declined to provide further details on the size of the payment. He also refused to reveal how much Apple is paying Qualcomm per phone.
On the topic of 5G chips for future iPhones, Mollenkopf said that Qualcomm is "excited" and has the "entire team" working to support Apple. Unsurprisingly, no details were given on Apple's product plans or launch timelines for 5G connectivity.
While Apple settled with Qualcomm, Qualcomm continues to face an FTC inquiry into anticompetitive business tactics, which Mollenkopf says is still a risk to Qualcomm. He doesn't believe the Apple decision will impact what the FTC decides.
I don't think so. I think when we look at this deal, we're just happy to be able to do it. The environment with which we were able to put the deal together is obviously right in the middle of a trial. But, you know, the court is going to make its decision.Mollenkopf's full interview, which includes additional details about Qualcomm's relationship with Apple and Qualcomm's goals moving forward, can be watched on CNBC's website.
Tags: Qualcomm, Apple vs. Qualcomm
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Top Rated Comments
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10 months ago
Mollenkopf's full interview, which includes additional details about Qualcomm's relationship with Apple and Qualcomm's goals moving forward, can be watched on CNBC's website ('https://www.cnbc.com/video/2019/04/17/watch-cnbcs-full-interview-with-qualcomm-ceo-steve-mollenkopf.html').
They could be each others "it's complicated" on Facebook.
10 months ago
It’s a win win win
Win for Apple to power their product
Win for Qualcomm in essentially guaranteed revenue
Win for the consumer.
Intel was later to the game and wasn’t able to provide the bit for bit quality and performance.
Win for Apple to power their product
Win for Qualcomm in essentially guaranteed revenue
Win for the consumer.
Intel was later to the game and wasn’t able to provide the bit for bit quality and performance.
10 months ago
How is it a win for Intel? lol
They can fail a little more quickly and quit throwing money down the toilet.
10 months ago
Apple has learned a lesson from this.
Apple has learned that Tim Cook made things worse by shifting away from fair dual sourcing of both Qualcomm and Intel that has worked for years to manipulation that backfired with unintended consequence of creating a monopoly. Fire Tim Cook.
10 months ago
Maybe Intel will sell their IP to Apple since they are exiting that arena. That would likely help give Apple a boost.
Help me understand this. Intel couldn't make their own IP successful. How would Apple get a boost from IP that the creators couldn't make work? The only value I can think of is a blueprint for what not to do.It would seem to me to be like some company buying the AirPower IP to get a boost.
10 months ago
It's presumptuous to think they won't. Two years is a LONG time in chip development.
That is true. It's 2019 and to have a product ready for 2020, means they need the first silicon stepping taped out by the end of the year. They need to do carrier testing and certification of the modem and possibly do a second stepping and start production by July of 2020.
At 7nm wafer process time is about .8 days per layer and somewhere at 80+ layers means 64 days to fab a wafer. If they start in July they will start seeing production wafers at the beginning of Sept.
They still need to do characterization, skew lots, etc. Now they could take the second stepping and presume that it will be production and start risk wafers early. But 2020 seems way aggressive for this.
Also a 2020 Apple chip means they weren't planning on Intel.
If they weren't planning on Intel, that begs the question, why did they sign a chip deal with Qualcomm?
I won't say it's impossible but I wouldn't want to be on that silicon team.
10 months ago
('https://www.macrumors.com/2019/04/17/qualcomm-ceo-apple-deal-interview/')
Following yesterday's surprise announcement of a settlement between Qualcomm and Apple, Qualcomm CEO Steve Mollenkopf sat down with CNBC ('https://www.cnbc.com/video/2019/04/17/watch-cnbcs-full-interview-with-qualcomm-ceo-steve-mollenkopf.html') to share a few more details about the new agreement between the two companies.
According to Mollenkopf, after "a lot of talking" both between teams and with Apple CEO Tim Cook, Apple and Qualcomm came to an agreement that "both companies like." Qualcomm and Apple are now focusing on getting new products out, such as the 5G iPhone coming in 2020 that Qualcomm will supply chips for.
Apple and Qualcomm have established a "very broad deal" across all of Qualcomm's technologies, which Mollenkopf says is the first direct license that Qualcomm has had with Apple rather than contract manufacturers.
Each side "found something that was useful" in the deal, and according to Mollenkopf, Apple and Qualcomm "want to work together on products," as evidenced by the multiyear product deal the two signed as part of the settlement.
Part of the agreement between the two companies included a payment from Apple to Qualcomm, but Mollenkopf declined to provide further details on the size of the payment. He also refused to reveal how much Apple is paying Qualcomm per phone.
On the topic of 5G chips for future iPhones, Mollenkopf said that Qualcomm is "excited" and has the "entire team" working to support Apple. Unsurprisingly, no details were given on Apple's product plans or launch timelines for 5G connectivity.
While Apple settled with Qualcomm, Qualcomm continues to face an FTC inquiry into anticompetitive business tactics, which Mollenkopf says is still a risk to Qualcomm. He doesn't believe the Apple decision will impact what the FTC decides.Mollenkopf's full interview, which includes additional details about Qualcomm's relationship with Apple and Qualcomm's goals moving forward, can be watched on CNBC's website ('https://www.cnbc.com/video/2019/04/17/watch-cnbcs-full-interview-with-qualcomm-ceo-steve-mollenkopf.html').
Article Link: Qualcomm CEO Steve Mollenkopf Shares Thoughts on Apple Deal but Declines to Give Specific Details ('https://www.macrumors.com/2019/04/17/qualcomm-ceo-apple-deal-interview/')
I wouldn't get comfortable if I were Mollenkopf. Apple has learned a lesson from this. They're not going to rely on third parties who own a virtual monopoly on a major part — certainly not on one as hostile as Qualcomm. Apple isn't going to stop developing their own modem. They'll order from Qualcomm for as long as they need them but then kick them to the curb. Qualcomm better think of diversifying because their modem won't be needed for that much longer.
10 months ago
Of course Mollenkopf is excited, it's entirely possible he might have ended up out of a job if Intel hadn't failed to produce 5G modems. He should send a fruit basket to 2200 Mission College Blvd.
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