Ever since Apple filed a lawsuit against Qualcomm early this year accusing them of withholding nearly $1 billion in rebates, both parties continue to step on each other toes and it’s apparently getting messier than we all anticipated. A recent report has it that Apple may be dropping Qualcomm as its iPhone modem chipsets supplier. Apple’s decision doesn’t come as a surprise since the legal battle between them continues and the possibility of settlement isn’t near for now.
A new report which appeared on Digitimes suggests that upcoming iPhone models which are expected to launch in 2018 will have its modem chipset supplied by MediaTek. Apple is planning to use Intel to augment 50% of its modem orders; the Cupertino, Calif-based company also believes that MediaTek will have the capacity to deliver as expected.
The sources said the Apple’s switching 50% of its orders for iPhone modem chipsets to Intel from Qualcomm is part of its self-protection efforts made after filing a lawsuit in January 2017 against Qualcomm’s allegedly unfair patent royalty calculation formula involving modem chipsets used in iPhone devices.
As the legal battle rages on, Apple is reportedly actively seeking new chip suppliers to absorb more of the remaining orders. And MediaTek, with its technology, capacity and pricing advantages, is a candidate to becoming a supplier modem chips for Apple in 2018, the sources continued.