Faizel Patel, Radio Islam News – 31-10-2017

It’s emerged that Apple has decided to drop chips supplied by Qualcomm which powers its iPhones and iPads.

According to two people familiar with the matter the change would affect iPhones released in the fall of 2018, but Apple could still change course before then.

The sources declined to be identified because they were not authorized to discuss the matter with the media.

It’s understood the dispute stems from a change in supply arrangements under which Qualcomm has stopped providing some software for Apple to test its chips in its iPhone designs.

Reuters reports the two companies are locked in a multinational legal dispute over the Qualcomm’s licensing terms to Apple.

Qualcomm told Reuters it is providing fully tested chips to Apple for iPhones.

“We are committed to supporting Apple’s new devices consistent with our support of all others in the industry.”

Bernstein analyst Stacy Rasgon says Apple’s move is not totally unexpected.

“Though Qualcomm has for several years supplied Apple’s modems – which help Apple’s phones connect to wireless data networks – Intel Corp has provided upward of half of Apple’s modem chips for iPhones in recent years.”

Intel recently acquired a firm that would let it replace more of Qualcomm’s chips in iPhones.

Rasgon says it’s too early to say definitively whether Apple fully intends to drop Qualcomm next year because Apple can likely make multiple contingency plans for different supplier scenarios.

“Apple is big enough that they want to support multiple paths, they can do that. Samsung did this too. A couple of years ago, Samsung designed Qualcomm out, but Qualcomm didn’t even know until it was close to time to ship” Samsung’s phones.”