One lawsuit brought to light new details about the previous partnership between Apple and Qualcomm: Apple requested a $ 1 billion incentive payment in 2011 to integrate Qualcomm's wireless chips into the iPhone, said Steve Mollenkopf, Qualcomm's CEO , in a lawsuit with the Federal Trade Commission (FTC) of the United States Commercial Commission testified in court.
These payments are common in the industry, but not the amount, said Mollenkopf. To recover the money, Qualcomm aimed to become the exclusive supplier of iPhone radio chips, said the CEO as a defense, as the press agency Reuters reported. This was not an attempt to exclude competitors from the iPhone, said Mollenkopf. Regulators like the FTC have argued that the agreement with Apple is an example of Qualcomm's anticompetitive behavior that serves to consolidate the Group's dominant position and exclude its competitors.
Apple received substantial discounts – as long as only Qualcomm chips were used
In exchange for the exclusive restriction granted to Qualcomm Apple apparently a significant discount on the radio chips. How tall this was, it was not known until now. His company had therefore refrained from integrating an Intel modem into the iPad mini 2 released in 2013, an Apple manager had previously stated in the lawsuit. Apple generally strives to have at least two suppliers for one component, said the manager, but because of the repayment agreement with Qualcomm it was "very uninteresting" to resort to other chip makers.
Meanwhile Qualcomm has lost important iPhone business
The iPhone was originally a Infineon baseband modem, in 2011 Apple then switched to Qualcomm's radio chip. The billions required should also serve to alleviate the cost of necessary change, as the press agency notes. Only since the iPhone 7 arrived as the second supplier of Intel chips for the train, for the iPhone 2018er Apple has relied exclusively on Intel Baseband processors.
A few days after the filing of a lawsuit by the FTC, Apple also sued Qualcomm at the beginning of 2017. With the sale of wireless chips and licensing of the technology that Qualcomm has granted twice, Apple has declared that it was inadmissible. Due to a patent infringement, Qualcomm currently has a ban on some old iPhone models in Germany.