Speaking on a conference call regarding Qualcomm earnings, George Davis, Qualcomm’s chief financial officer, said: “We believe Apple intends to solely use our competitor’s modems rather than our modems in its next iPhone release.”
Given the ongoing legal dispute between Apple and Qualcomm, it should come as no surprise that Apple would choose to distance itself from its rival at this time. The two companies are waging a global legal war against each other over patents and royalties.
In January 2017, Apple launched a $1bn (£760m) lawsuit, claiming Qualcomm abuses its “monopoly power” to demand high royalties from companies using its products and force chip buyers to license patents. Qualcomm responded in turn and a succession of complaints has been filed in both US and international courts, inevitably dragging in other Apple suppliers.
Prior to 2017, Apple was obliged to honour an exclusive arrangement with Qualcomm, although the latter’s modems were...