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Apple To Quit Qualcomm Parts Upcoming Year



Apple Inc has manufactured iPhones and iPads that could drop chips supplied by Qualcomm Inc, according to the insider peoples with the matter.

Huge change would affect iPhones released in the end of 2018, but Apple could still change decision before then, according to these people. They refused to be identified because they were not allowed to discuss these matters with the anyone outside company.

The dispute stems from a change in supply arrangements under which Qualcomm has stopped giving some softwares for Apple to test their chips in its iPhone designs, one of the people said.

The two companies are not over in a multinational legal dispute over the Qualcomm’s license terms with Apple.

According to Qualcomm 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,” Qualcomm said in a statement clearly.

The Wall Street Journal first reported that Apple could give up Qualcomm chips Monday.

Bernstein analyst Stacy Rasgon said this Apple’s move is not completely unexpected.

Though Qualcomm has supplied Apple’s modems for several years - which help Apple’s phones connect to wireless data networks - Intel Corporation has provided upward of half of Apple’s modem chip parts for iPhones in recent years, Rasgon said. Intel in 2015 has acquired a firm that would let it replace more of the Qualcomm’s chip in iPhones, Rasgon said.

Rasgon said it’s too early to say that definitely whether Apple completely intends to quit Qualcomm upcoming year because Apple can likely make multiple alternative plans for different supplier scenarios.

“Apple is big enough that they want to support multiple choices, they can do that,” Rasgon said. “Samsung (Electronics Co) also did this too. A couple of years ago, Samsung designed Qualcomm out, but Qualcomm didn’t even have knowledge until it was close time to ship” Samsung’s phones, Rasgon said.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop, manufacture and sell personal computers. It was incorporated as Apple Computer, Inc. in January 1977, and sales of their computers saw significant momentum and revenue growth for the company. Within few years, they hired a staff of computer designers and had started a production line for their company.
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