Apple demanded $1 billion incentive fee from Qualcomm to provide iPhone modems – Neowin

0
35
Apple demanded $1 billion incentive fee from Qualcomm to provide iPhone modems – Neowin

Apple Demanded $1 Billion Incentive Fee From Qualcomm To Provide IPhone Modems - Neowin

Within the ongoing legal tussle between Qualcomm and Apple, Qualcomm CEO Steve Mollenkopf has testified at a federal courthouse in San Jose, California, that Apple demanded a $1 billion ‘incentive fee’ for an opportunity to provide the iPhone modems. The fee would ease the technical prices Apple would face switching from its then present provider Infineon Applied sciences.

Mollenkopf said that Apple offered no assurance as to the quantity of chips it will be ordering and that whereas incentive funds are widespread apply, the quantity Apple was demanding was not. This pushed Qualcomm to pursue an exclusivity settlement with Apple to make sure sufficient of its modems have been offered to cowl the price of the inducement fee.

Qualcomm grew to become the only provider of modems for Apple merchandise in 2011, and in alternate, Qualcomm would provide a rebate, though it is unknown simply how huge the low cost could be.. Beneath the phrases of the deal, Apple might pursue different suppliers for its merchandise, nevertheless, they’d lose the rebate, primarily making Qualcomm’s chips way more costly if different suppliers have been used.

Apple’s provide chain govt, Tony Blevins, had additionally testified earlier, saying that Qualcomm “made it very unattractive for us to make use of one other chip provider” since “these rebates have been very, very giant.”

Antitrust regulators have mentioned the deal Qualcomm struck with Apple was anti-competitive conduct on Qualcomm’s half and designed to make sure its dominance within the modem provider house and block rivals such as Intel.

Supply: Reuters

Source

News Comments
0 Shares

Apple Demanded $1 Billion Incentive Fee From Qualcomm To Provide IPhone Modems - Neowin
Apple Demanded $1 Billion Incentive Fee From Qualcomm To Provide IPhone Modems - Neowin
Apple Demanded $1 Billion Incentive Fee From Qualcomm To Provide IPhone Modems - Neowin
Apple Demanded $1 Billion Incentive Fee From Qualcomm To Provide IPhone Modems - Neowin
Apple Demanded $1 Billion Incentive Fee From Qualcomm To Provide IPhone Modems - Neowin

Apple Demanded $1 Billion Incentive Fee From Qualcomm To Provide IPhone Modems - Neowin

Apple Demanded $1 Billion Incentive Fee From Qualcomm To Provide IPhone Modems - Neowin

No tags for this post.