How Apple started this relation
Apple and Qualcomm meet at a bar. They find many similarities of interest, so they decided to go on a second date. They finalized many successful deals over the course of time. Their relationship was going strong until they got into a fight over the money. They argue why should we pay Qualcomm THIS MUCH. Yeah, that was the gist of the current situation we’re dealing with. Like all corporate breakups, Apple decides to move on with another with effect from fall of 2018.
The world largest phone maker is upset over Qualcomm charging a percentage on the whole iPhone. CEO of Apple, Tim Cook said in one of his statements that they do appreciate the breakthroughs made by Qualcomm in its performance. But it’s just a small part of the whole phone. And those innovations come not even close to breakthroughs like TouchID and FaceID. Well, that sounds kind of fair, not too bloated.
And things got worse for them
To make things worse. Qualcomm also stopped proving the software to Apple. For testing the performance of their chips in iPhones. Qualcomm says they are strongly committed towards the success of their partner’s missions. They ensure the quality of their products. It’s not a new story, Apple already had filed a lawsuit with Qualcomm for $1 billion regarding the payments. In return, you know as normal people do. Qualcomm filed a lawsuit with their rivals in China asking for halting the sales and manufacturing of iPhones and iPads.
How this will affect Qualcomm
This move could affect the growth the Qualcomm. They have to present a plan, a future without Apple (which is not possible for some of us). Qualcomm recently saw a drop in the shares by 15% following the China lawsuit. They are still going on with releases like Google Pixel. Apple is also looking to be a trillion dollar company. For that, the path has to be without any bumps.
How Apple plans to go with it
Apple may proceed with a stepwise process to go through the process. Instead of dropping Qualcomm altogether this Fall. They are also planning the replace Qualcomm with Intel. Intel acquired a firm back in 2015 looking to boost its production for their biggest client in the smartphone market. Or else, Apple is big enough to go down a multi-supplier path for its different markets. The same strategy was previously played by Samsung on Qualcomm. They didn’t even saw it coming until the shipment dates were close.
Can there be another way around all this?
We only tend to see major players in the mobile market. They do all the innovation for us, so we can’t say there is no innovation. But do you think there is a way to make some room for the small companies, just for doing something different? Maybe, doing something that others have never thought about.