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Qualcomm and Apple Partnership Crumbled Over Fears Apple Would Leak Qualcomm Software to Competitors

Apple and Qualcomm are embroiled in a bitter legal battle over licensing and royalty fees that's lasted for two years now and has led to the breakdown of the relationship between the two companies, but there may have been other factors in the breakup. Leaked emails between Apple COO Jeff Williams and Qualcomm CEO Steve Mollenkopf seen by Bloomberg suggest the two companies may have cut ties over software access. Williams wanted to continue to work with Qualcomm despite the legal battle, but Qualcomm accused Apple of leaking Qualcomm computer code needed to customize mobile chips. Williams offered to "firewall" the Apple engineers using the Qualcomm software and said nothing of value could be obtained from the code anyway."In my wildest imagination of some evil intention of Apple, I have trouble coming up with a real scenario where anything of significant value could be leaked based on this code," Williams wrote in September 2017.Mollenkopf told Williams that he was concerned about protecting Qualcomm's proprietary information, and while he offered to provide software access to Apple, he asked Apple to commit to using Qualcomm chips in at least 50 percent of iPhones over the next two years. Qualcomm in September 2018 accused Apple of stealing confidential information and trade secrets and passing it on to rival chipmaker Intel. From Qualcomm's lawsuit against Apple:Although discovery is ongoing, it is clear that Apple's conduct went far beyond simply breaching the contract originally sued on. Indeed, it is now apparent Apple engaged in a years-long campaign of

Apple Ordered to Retract Part of Press Release in Ongoing Qualcomm Battle

Apple has been ordered to stop using a part of a recent press release that claimed the iPhone 7 and iPhone 8 would still be available in Germany through carriers and resellers, reports Bloomberg. Apple released the statement following a preliminary injunction in December that prevented the company from selling older iPhones in Germany. Apple at the time said that while it would stop selling the devices at its own retail stores, they would remain available via other means. Qualcomm yesterday got another preliminary injunction to stop Apple from using that statement because it was "misleading." The court's ruling, said Qualcomm, also required Apple to stop offering the iPhone 7 and iPhone 8 via resellers, too, and the court agreed."The press release is misleading because it contains statements that are at least potentially deceptive about the availability of the goods," the judges wrote. "The statement conveys the impression of unlimited availability."Apple has not been selling iPhone 7 and iPhone 8 models in its retail stores or online in Germany since January and prior to the order about the press release, was also ordered to pull iPhones from partner stores. Some German resellers have continued to sell the devices, however. Apple's newest iPhones, the XR, XS, and XS Max are not affected by the sales and import ban and continue to be available in the country. Qualcomm also won a preliminary injunction against the iPhone 7 and iPhone 8 in China, but Apple was able to skirt the ruling via a software update that removed patented

Barclays: There's Still a 'Good Chance' Apple Will Have to Use Qualcomm 5G Modems in 2020 iPhones

While recent reports have suggested Intel will supply Apple with 5G modems for 2020 iPhones, the chipmaker has struggled with its consumer 5G modems, to the extent that Apple has allegedly "been unhappy" with Intel's progress. Despite its apparent displeasure with Intel, a report in November claimed that Apple had not considered reopening conversations with Qualcomm about supplying 5G modems for 2020 iPhones. Instead, Apple recently testified that it held conversations with Samsung and MediaTek as potential alternative suppliers. In a research note obtained by MacRumors today, however, analysts at investment bank Barclays said they "still believe there is a good chance Apple will have to use Qualcomm for the 5G modem in their 2020 phones." They also believe such a deal may result in the two companies settling their ongoing lawsuit. It's a bold claim, as Apple and Qualcomm are engaged in a bitter legal battle around the world. The saga began in 2017 when Apple sued Qualcomm over anticompetitive business practices related to royalties. Qualcomm has denied the allegations and says the iPhone wouldn't exist without its innovations. Apple COO Jeff Williams recently testified that Qualcomm has been unwilling to provide Apple with any new wireless chips since the legal battle began, with each company seemingly trying to gain the upper hand on the other. As of now, neither company appears willing to back down. Qualcomm is widely considered to be leading the industry with its 5G efforts though, and there's a good chance its 5G modems will outperform similar

German Court Throws Out Latest Qualcomm Patent Case Against Apple

A German court on Tuesday threw out a new patent lawsuit filed by Qualcomm, which the U.S. company claimed was violated by the use of its chips in Apple's iPhones (via Reuters). The regional court in the city of Mannheim dismissed the Qualcomm suit as groundless in an initial verbal decision, saying the patent in question was not violated by the installation of its chips in Apple's smartphones.This is just the latest in a string of lawsuits from Qualcomm, which remains locked in a worldwide patent battle with Apple. The chipmaker said it would appeal today's decision, after winning a separate case before a German court in December that enabled it to enforce a ban on the sale of older iPhones in the country. "Apple has a history of infringing our patents," said Don Rosenberg, Qualcomm's executive vice president and general counsel. "While we disagree with the Mannheim court's decision and will appeal, we will continue to enforce our (intellectual property) rights against Apple worldwide."Apple declined to comment on the Mannheim decision and instead referred to a statement issued in response to the December ruling. Apple is appealing the preliminary injunction which blocks the import and sale of infringing iPhone models in Germany, but it has already been forced to pull the iPhone 7, iPhone 7 Plus, iPhone 8, and iPhone 8 Plus from sale in the country. Meanwhile, Qualcomm has put aside €1.34 billion in security bonds in order to enforce the preliminary injunction. The bonds will be put towards the cost of the lost sales if Apple successfully appeals the

Apple Wanted to Use Qualcomm Chips for 2018 iPhones, But Qualcomm Wouldn't Sell Them

As the FTC's antitrust trial against Qualcomm continues, Apple's chief operating officer, Jeff Williams, has taken the stand to share details on the terms of Apple's contracts with Qualcomm. There's no live feed of the trial, but reporters including CNET's Shara Tibken and Florian Mueller of FOSS Patents are attending and sharing details on what Williams has to say. Most interestingly, Williams says that Apple had wanted to use both Qualcomm and Intel chips in the iPhone XS, XS Max, and XR despite the ongoing legal battle between Apple and Qualcomm, but Qualcomm ultimately would not sell it the modems because of the fight. "The strategy was to dual source in 2018 as well," said Williams. " "We were working toward doing that with Qualcomm, but in the end they would not support us or sell us chips." Williams went on to explain that after Qualcomm CEO Steve Mollenkopf refused to sell Apple the chips, Apple had to contact Intel CEO Brian Krzanich to supply LTE chips for all of the 2018 iPhones. "We would have loved to continue to have access to Qualcomm's tech," said Williams. Williams also detailed many of Apple's past interactions with Qualcomm. In 2011, when Apple negotiated a contract to use Qualcomm as a supplier for modems instead of Infineon because of Apple's need for CDMA-compatible chips, Qualcomm demanded a percentage of the iPhone's cost. The two companies ultimately negotiated a rebate that brought the total royalty fee down to $7.50 per iPhone, though Apple had wanted to pay $1.50 per phone, equivalent to 5 percent of the value of the baseband

Qualcomm Calls Tim Cook's Statement on Settlement Talks 'Misleading'

Apple CEO Tim Cook in an interview yesterday said that Apple had not been in any kind of settlement talks with Qualcomm since the third calendar quarter of 2018, which ended in September. Cook was referencing November comments from Qualcomm CEO Steve Mollenkopf, who said during a November 7 earnings call that Qualcomm has "continued to have discussions with Apple to try and reach a resolution" and in an interview later in the month that the two companies were "really on the doorstep of finding a resolution." After Cook made it clear yesterday that no settlement talks had taken place when those comments were made, Qualcomm in a statement told Reuters that what Cook had to say was "misleading" and that the company stands by Mollenkopf's statement."We have been consistent for the last 18 months in making clear that we have, at various times, been in discussions with Apple about a possible resolution to our licensing dispute," a Qualcomm spokesperson said in a statement. "We have also stated clearly on several occasions that we believe it will be resolved, one way or the other, in the near future, either through a settlement or court decisions."In response, Apple said that Cook's comments were accurate. "Qualcomm is desperate to obfuscate the tales it has been telling its investors. Their accusations are a red herring," said Apple. Cook yesterday had no kind words for Qualcomm, calling its policies "illegal."The issues that we have with Qualcomm is that they have a policy of no license, no chips. This is, in our view, illegal. And so many regulators in many

Apple's Legal Dispute With Qualcomm to Continue as Tim Cook Says Claims of Settlement Talks Are False

In an interview today with Mad Money's Jim Cramer, Apple CEO Tim Cook shared some details about the company's ongoing legal battle with Qualcomm. Despite rumors of settlement talks, Cook says that Apple has not been in any settlement discussions with Qualcomm since the third calendar quarter of last year. And in response to a question about whether Apple will cave and enter into a settlement with Qualcomm given the import bans in China and Germany, Cook said "no." He then went on to blast Qualcomm for its pricing and licensing practices, calling them "illegal," and he commented on Qualcomm's tactic of spreading fake news, calling it "not how things should operate" and saying it "should be beneath companies."The issues that we have with Qualcomm is that they have a policy of no license, no chips. This is, in our view, illegal. And so many regulators in many different countries agree with this. And then secondly, the obligation to offer their patent portfolio on a fair, reasonable, and nondiscriminatory basis. And they don't do that. They charge exorbitant prices. And they have a lot of different tactics they use to do that. And that's not just us saying that. I mean, you can see what's coming out of the FTC trial here in the United States.Apple and Qualcomm have been involved in an increasingly bitter legal battle since 2017. Qualcomm has resorted to filing lawsuits against Apple for patent infringement and has won preliminary import bans against older iPhones in China and Germany. The FTC's antitrust lawsuit against Qualcomm kicked off this week, with the FTC

Qualcomm Facing Off With FTC in Antitrust Trial That Kicks Off Today

With the intense ongoing legal battle between Qualcomm and Apple, it's easy to forget that Qualcomm is also facing an FTC antitrust lawsuit for using anticompetitive tactics to remain the main supplier for baseband processors for smartphones. The FTC hasn't forgotten, though, and FTC lawyers are in a Northern California courtroom before well-known judge Lucy Koh, who also presided over the Apple-Samsung legal fight. Lawyers for Qualcomm, the FTC, Apple, and other manufacturers have gathered as the trial commences, with the FTC set to argue that Qualcomm refused to provide chips to OEMs without a patent license, refused to license its technology to rivals, and set exclusive deals with Apple. Manufacturers like Huawei and Lenovo will testify that Qualcomm threatened to disrupt their chip supply during licensing negotiations, forcing them into signing deals. The FTC first filed a complaint against Qualcomm in January 2017, which was actually the catalyst for Apple's own lawsuit against the company just a few weeks later. In that complaint, the FTC said that Qualcomm uses its position and its portfolio of patents to impose anticompetitive supply and licensing terms on cell phone manufacturers, impacting its competitors. Part of the complaint addressed a deal with Apple in which Qualcomm required Apple to exclusively use its modems from 2011 to 2016 in exchange for lower patent royalties. Qualcomm is also accused of refusing to license its standard-essential (FRAND) patents to competing suppliers and implementing a no license, no chips policy to drive up

Apple Pulls iPhone 7 and iPhone 8 Models From Sale in Germany Amid Legal Battle With Qualcomm

Yesterday chipmaker Qualcomm announced that it posted €1.34 billion in security bonds required for the chipmaker to enforce a preliminary injunction on select iPhone models in Germany, after a court in the country found Apple to be infringing Qualcomm patents related to power savings technology in smartphones. The injunction blocks the import and sale of infringing iPhone models in Germany while Apple appeals the verdict, and accordingly, Apple has now pulled the iPhone 7, iPhone 7 Plus, iPhone 8, and iPhone 8 Plus from sale in the country. Those four iPhone models are no longer available to order via Apple.com in Germany and they have also been pulled from sale at all 15 of Apple's retail stores in the country until further notice. The latest iPhone XS, iPhone XS Max, and iPhone XR models are not impacted by the verdict and remain available. Qualcomm's equivalent of $1.5 billion in security bonds will be put towards the cost of the lost sales if Apple successfully appeals the verdict. Apple was also ordered to recall infringing iPhone models from third-party resellers in Germany, according to Qualcomm, but as noted by TechCrunch and Reuters, some German resellers continue to sell iPhone 7 and iPhone 8 models. In a statement, Apple said this verdict is another "desperate attempt" by Qualcomm to distract from the "real issues" between the two companies:Qualcomm's campaign is a desperate attempt to distract from the real issues between our companies. Their tactics, in the courts and in their everyday business, are harming innovation and harming consumers.

Qualcomm Puts Aside $1.5B in Funds Required to Enforce iPhone Sales Ban in Germany

Qualcomm today announced that it has posted €1.34 billion in security bonds required for the chipmaker to be able to enforce a preliminary injunction on select iPhone models in Germany, after a court in the country found Apple to be infringing Qualcomm patents related to power savings technology used in smartphones. Last month, a German court ordered Apple to cease the import and sale of all infringing iPhone models in Germany. Apple was also ordered to recall those iPhone models from third-party resellers in Germany, according to Qualcomm. In a statement, Apple said it is "disappointed" by the verdict and plans to appeal. The company also confirmed that the iPhone XS, iPhone XS Max, and iPhone XR are not affected by the preliminary injunction, but it has temporarily halted sales of iPhone 7 and iPhone 8 models at its 15 retail stores in Germany. Apple's full statement:Qualcomm's campaign is a desperate attempt to distract from the real issues between our companies. Their tactics, in the courts and in their everyday business, are harming innovation and harming consumers. Qualcomm insists on charging exorbitant fees based on work they didn't do and they are being investigated by governments all around the world for their behavior. We are of course disappointed by this verdict and we plan to appeal. All iPhone models remain available to customers through carriers and resellers in 4,300 locations across Germany. During the appeal process, iPhone 7 and iPhone 8 models will not be available at Apple's 15 retail stores in Germany. iPhone XS, iPhone XS Max and iPhone

German Court Issues Sales Ban on Select iPhones Violating Qualcomm Patent, Apple Plans to Appeal [Updated]

A court in Germany today ruled that some iPhone models equipped with Intel modems infringe on a Qualcomm hardware patent, and issued a preliminary injunction on those devices, according to Reuters and CNBC. However, the reports claim the ruling will not go into immediate effect if Apple appeals, and it almost certainly will. Matthias Zigann, the judge presiding over the case, ruled that iPhones that contain a combination of chips from Intel and Apple supplier Qorvo violated one of Qualcomm's patents around so-called "envelope tracking," a feature that helps preserve battery life when sending and receiving wireless signals. The preliminary injunction would prevent affected iPhones, excluding the iPhone XS, iPhone XS Max, and iPhone XR, from being sold in Germany. Last week, a Chinese court also issued a preliminary injunction on the iPhone 6s through iPhone X after the court found those devices violated two separate Qualcomm patents related to app management and photo editing. Apple continues to sell those iPhone models in China, though, despite the ruling. Apple said it believes it is in compliance with the Chinese court order, but it later released iOS 12.1.2 with minor changes to address the Qualcomm patents, including a new animation for force closing apps and tweaked settings for contact and wallpaper images. The changes were only made in China. In a statement issued on Tuesday, Qualcomm's chief lawyer Don Rosenberg said that Apple continues to "flout the legal system" by violating the preliminary injunction in China and by releasing misleading

Apple Confirms iOS 12.1.2 Addresses Qualcomm Patents, Introduces New Force Closing App Animation in China

Apple on Monday released iOS 12.1.2 exclusively for iPhones. The software update fixes bugs related to eSIM activation on the iPhone XR, iPhone XS, and iPhone XS Max, and addresses an issue that could affect cellular connectivity in Turkey on those devices, according to Apple's release notes. In China, as planned, iOS 12.1.2 also implements minor changes to address two Qualcomm patents that led to a Chinese court issuing a preliminary injunction on the iPhone 6s through iPhone X last week, according to Apple's release notes in Chinese. These changes were not mentioned in any other countries. A translation of the iOS 12.1.2 release notes in China:iOS 12.1.2 includes iPhone bug fixes. This update: - Fixes bugs with eSIM activation for iPhone XR, iPhone XS, and iPhone XS Max - Addresses an issue that could affect cellular connectivity in Turkey for iPhone XR, iPhone XS, and iPhone XS Max - Introduces a new animation when force closing apps - Updates share sheet for setting contact and wallpaper imagesMacRumors uncovered a video on Weibo of the new animation for force closing apps on an iPhone running iOS 12.1.2 in China. Rather than moving up and off the screen when swiped closed, which looks familiar to Qualcomm's patent in China, apps now appear to shrink into themselves when swiped closed. Video Credit: 灰原帆 / Weibo As noted on Twitter by our editor-in-chief Eric Slivka, it appears that Apple may have rushed the release of iOS 12.1.2 to address the Qualcomm patents and possibly other time-sensitive bug fixes. The update that was previously intended to be

Qualcomm Claims Apple is Still Violating Chinese Court Order Despite Software Update to Remove Patented Features

Qualcomm on December 10 scored a victory in its ongoing legal battle with Apple after winning an import ban on the iPhone 6s through the iPhone X. The ban was enacted after a Chinese court said that the older iPhones infringe on two of Qualcomm's patents related to resizing and reformatting photos for wallpaper and switching between apps. After the court's ruling, Apple said that the patented features were software related rather than hardware related, and that it would release a software update for iPhone users in China to remove any infringing functionality. Apple today pushed an iOS 12.1.2 update that presumably includes the promised OS tweaks in China (Apple has not confirmed iOS 12.1.2 includes these fixes), but Qualcomm says that despite the software update, Apple is still violating the Chinese court's order. In a statement to Reuters, Qualcomm said that Apple continues to "flout the legal system" by violating the injunction and releasing misleading statements about the ruling."Despite Apple's efforts to downplay the significance of the order and its claims of various ways it will address the infringement, Apple apparently continues to flout the legal system by violating the injunctions," Don Rosenberg, Qualcomm's general counsel, told Reuters in a statement on Monday. "Apple's statements following the issuance of the preliminary injunction have been deliberate attempts to obfuscate and misdirect," Qualcomm's Rosenberg said in a statement on Monday.Apple last week said that "based on the iPhone models" currently offered in China, that it believed it

Apple Seeking to Shift iPhone Production to Pegatron to Offset Chinese Qualcomm Ban

Apple is reportedly looking to shift production of older iPhones to Taiwanese supplier Pegatron in an effort to avoid losing billions in revenue as a result of its patent dispute with Qualcomm. Earlier this week, Qualcomm was granted an import ban on the iPhone 6s through iPhone X in China after the court found those devices violated two Qualcomm patents. However, according to documents seen by Nikkei Asian Review, smartphones produced by Pegatron are exempt from the ban because the Taiwanese supplier paid license fees for the contested software, whereas rival iPhone assemblers Foxconn and Wistron did not. One of the sources with direct knowledge of the situation said Apple had held initial discussions with Pegatron about whether the Taiwan-based company could take on more iPhone production to make up for the impact of the ban. No decision has yet been taken, however. [...] Taking into account a consumer shift to newer models, it is estimated that the order barring production of older iPhone models by Foxconn and Wistron could hit Apple's sales by some $5 billion in 2018 or 3% of total iPhone revenue. This could be halved to about $2.5 billion if Pegatron is exempted, two sources said. And if Apple later decides to ask Pegatron to step up production, the impact would be even less, the sources added.Apple has warned that upholding the iPhone ban would cause "truly irreparable harm" to Apple, other companies, and consumers if it is forced to withdraw its devices from the market. Late on Thursday, Apple said it will release a software update to iPhone

Apple Warns Chinese iPhone Ban Would Force a Settlement With Qualcomm, Result in 'Irreparable Harm' to Apple and Others [Updated]

In a court filing related to the ongoing dispute with Qualcomm that has resulted in a partial ban on iPhone sales in China, Apple this week warned that upholding the ban would cause "truly irreparable harm" to Apple, other companies, and consumers if Apple is forced to withdraw its devices from the market, according to Bloomberg. The ban would cost Apple millions of dollars a day and affect both the Chinese government and consumers, the company added, noting it has created 5 million jobs in China across the supply chain and third-party software developers. The Chinese government "may suffer hundreds of thousands of tax losses" from the iPhone ban because of lost taxes from sales of the devices, the company also said, citing estimates of 50 million units sold in the country in 2017. [...] "Apple and many other companies, consumers, and government will suffer truly irreparable harm," the company said in the filing.As a result, Apple says the ban would force Apple to settle with Qualcomm, a move that would lead the entire mobile phone industry to "relapse into the previous unreasonable charging mode and pay high licensing fees." Apple and Qualcomm have been locked in a patent battle over chip-related license fees, but the current issue instead stems from separate patents that cover allowing users to "adjust and reformat the size and appearance of photos" and "managing applications using a touch screen when viewing and navigating apps." Qualcomm earlier this week won an import ban on iPhone 6s through iPhone X models, although Apple has argued the ban does not

Qualcomm Now Seeks iPhone XS and iPhone XR Sales Ban in China as Legal Battle With Apple Intensifies

Qualcomm plans to file for an injunction on the iPhone XS, iPhone XS Max, and iPhone XR in China, which would theoretically prevent the sale of those devices in the country, a lawyer for the company told the Financial Times today. Earlier this week, a Chinese court granted an injunction on older iPhone 6s through iPhone X models in China after it ruled that those devices violated two Qualcomm patents, and the chipmaker now plans to assert those same patents against the latest iPhones amid an escalating legal battle with Apple. The first Qualcomm patent reportedly enables users to "adjust and reformat the size and appearance of photos," while the second is said to relate to "managing applications using a touch screen when viewing and navigating apps." In a statement issued following the ruling earlier this week, Apple said all iPhone models remain available for customers in China:Qualcomm's effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world. All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated. We will pursue all our legal options through the courts.Apple has continued to sell the affected iPhone models in China because it believes the patent infringement ruling does not apply to iOS 12, leading Qualcomm to call on the Fuzhou Intermediate People's Court to enforce the injunction. Reports suggest that Qualcomm's latest efforts are an attempt to

Qualcomm Wins Import Ban on iPhone 6s Through iPhone X in China, Apple Says All iPhone Models Remain Available

CNBC and Reuters today report that the Fuzhou Intermediate People's Court has granted Qualcomm an import ban on the iPhone 6s through iPhone X in China after the court found those devices violated two Qualcomm patents. This could result in those iPhone models being unavailable to purchase in China. However, in a statement issued to those publications, Apple said all iPhone models remain available for customers in China:Qualcomm's effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world. All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated. We will pursue all our legal options through the courts.The first Qualcomm patent reportedly enables users to "adjust and reformat the size and appearance of photos," while the second is said to relate to "managing applications using a touch screen when viewing and navigating apps." Qualcomm issued the following statement:We deeply value our relationships with customers, rarely resorting to the courts for assistance, but we also have an abiding belief in the need to protect intellectual property rights. Apple continues to benefit from our intellectual property while refusing to compensate us. These Court orders are further confirmation of the strength of Qualcomm's vast patent portfolio.The ruling does not apply to the new iPhone XS, iPhone XS Max, or iPhone XR, nor does it apply to iPhones running iOS 12, which is

Qualcomm Says Every Android Manufacturer Will Have 5G Flagship Phone by End of 2019

Apple is reportedly waiting until at least 2020 to roll out next-generation 5G cellular data technology in its iPhone lineup, but according to Qualcomm president Cristiano Amon, "every" Android handset manufacturer will have a flagship phone with 5G support across U.S. carriers by the end of next year, reports CNET. By the holidays next year, every flagship handset -- at least when it comes to those running Google's Android software and using Qualcomm's Snapdragon processor -- will tap into 5G, said Qualcomm President Cristiano Amon. "When we get to exactly this time of year one year from now … we will see every [handset maker] on the Android ecosystem, their flagship across all US carriers will be a 5G device," he told CNET in an interview Tuesday at Qualcomm's Snapdragon Technology Summit in Hawaii. "Every Android vendor is working on 5G right now."Apple is of course embroiled in a patent dispute with Qualcomm that has seen the iPhone maker shift its modem orders over to Intel. Apple is said to be targeting Intel's upcoming 8160/8161 5G modem for the iPhone, but that part won't enter mass production the second half of 2019, which means it won't start appearing in devices until the first half of 2020. Regardless of its dispute with Qualcomm, Apple has historically not been on the cutting edge of adopting the latest cellular standards, preferring to wait until they've matured and chips have been better optimized before including the technologies in its devices, so it shouldn't necessarily come as a surprise that Apple will likely lag behind other manufacturers in

Apple Hunting for Wireless Modem Engineers Near Qualcomm's San Diego Headquarters

According to a new report out today by Bloomberg's Mark Gurman and Ian King, Apple is aggressively hiring engineers in San Diego, the headquarters of Qualcomm. Apple is looking for designers in San Diego who will help develop wireless components and processors for its iPhones, a move that would further weaken Qualcomm. Apple posted 10 job listings in San Diego over the past month, looking for engineers to work on the company's Neural Engine artificial intelligence processor and wireless modems. This is the first time Apple has publicly recruited for these types of jobs in San Diego. Apple is said to be working on building its own wireless chip for future iPhone models, but as of yet the company has relied on companies like Qualcomm and Intel for such technology. Following the dispute with Qualcomm, Apple made Intel the exclusive supplier of wireless modems for the iPhone XS, XS Max, and XR in 2018. The two companies have been embroiled in a legal dispute since early 2017, with the most recent news suggesting that Apple is not in talks "at any level" to settle the dispute. Next, Apple is gearing up for a full legal trial with Qualcomm. The lawsuits started when Apple in January 2017 sued Qualcomm for $1 billion, accusing Qualcomm of charging unfair royalties for "technologies they have nothing to do with" and failing to pay quarterly rebates. Apple and its suppliers stopped paying licensing fees at that time. Qualcomm eventually filed a countersuit claiming that Apple had infringed on several of its patents, and attested that its technology is "at the

Apple is 'Not in Talks' to Settle Legal Dispute With Qualcomm and is 'Gearing Up For Trial'

Apple and Qualcomm are not in talks "at any level" to settle a wide-ranging legal dispute spanning multiple countries, according to Reuters. The report cites an unnamed source on Apple's side who said "there is absolutely no meaningful discussion taking place between us and Qualcomm, and there is no settlement in sight," with Apple "gearing up for trial." The case is set to go to trial early next year, should the companies fail to reach a resolution, according to the report. Qualcomm CEO Steve Mollenkopf had told investors on the company's quarterly earnings call in July that the two companies were in talks to resolve the litigation. "We hope that through the combination of either those paths, we could get to a resolution, and we're confident that we will," he said at the time. The saga began when Apple sued Qualcomm in January 2017 for allegedly withholding nearly $1 billion in royalty rebates as retaliation for Apple "responding truthfully to law enforcement agencies investigating them," referring to the FTC's investigation into Qualcomm's anticompetitive business practices. Qualcomm countersued Apple in April 2017, accusing the company of failing to engage in good faith negotiations for a license to its 3G and 4G standard essential patents on fair, reasonable, and non-discriminatory terms. Qualcomm also accused Apple of encouraging regulatory attacks on its business in multiple countries. Qualcomm's countersuit said Apple "could not have built the incredible iPhone franchise" without relying upon the chipmaker's "fundamental cellular technologies."