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2024
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03
Apple considers Samsung and MediaTek chips for 2019 iPhones
According to Reuters, on Friday, during the trial of Qualcomm and the U.S. Federal Trade Commission, an Apple executive's testimony revealed that the company is in contact with Samsung Electronics, MediaTek, and existing supplier Intel. Discuss to provide 5G modems for the 2019 iPhone.
According to Reuters, on Friday, during the trial of Qualcomm and the U.S. Federal Trade Commission, an Apple executive's testimony revealed that the company is in contact with Samsung Electronics, MediaTek, and existing supplier Intel. Discuss to provide 5G modems for the 2019 iPhone.
Between 2011 and 2016, Apple relied on San Diego-based Qualcomm to provide chips to help connect iPhones to wireless networks. During this time, Qualcomm has been Apple's exclusive supplier. But starting in 2016, Apple introduced another supplier, Intel. Then in 2018, Apple abandoned Qualcomm and partnered only with Intel to provide chips for the latest phones.
But testimony Friday from Apple's supply chain executive, Tony Blevins, suggested that Apple is also in talks with MediaTek and Samsung to supply 5G chips for iPhones scheduled for 2019.
Blevin testified that Apple had been looking for multiple suppliers for adjusting demodulator chips, but chose to enter into an exclusive supply agreement with Qualcomm because it offered a significant discount on patent license fees in order to obtain exclusive supplier status.
In 2013, Apple broke an exclusive agreement and began working with Intel to provide a modem chip for the iPad Mini. Due to the use of Intel's chips, Apple no longer enjoys a discount on patent license fees, and Intel's products as a whole are "on the high side".
Blevin went on to say that after price negotiations with Qualcomm failed last year, Apple launched a "Project Antique" program to find a second modem supplier.
Between 2016 and 2017, Apple introduced Intel chips on some iPhones, while still using Qualcomm chips. However, in early 2017, a dispute between Apple and Qualcomm caused the business relationship between the two companies to deteriorate. As a result, all iPhone products released last year used Intel chips.
"The purpose of Project Antique is to find a second supplier. We have no problem with Intel, but we hope to no longer rely on a single supplier. We hope to have a supply relationship with both Qualcomm and Intel," Blevin said. He also said that for Apple, the negotiations with Samsung are "not ideal," but Samsung is still Apple's largest component supplier.
In court, Blevin did not say whether Apple had made a decision on a 5G modem supplier or whether the company would release a 5G phone in 2019. However, according to sources quoted by Bloomberg, Apple may release 5G iPhone products as early as 2020.
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