We’ve got a market flash on Qualcomm. The shares spiked within the past hour on an analyst tweet that apple may have failed in the development of its own 5G modem chip and so is likely to continue using Qualcomm cucumbers up five and a half percent we should check on Apple as well.
So you’ve come back and see where we’re on the fallout?
Obviously, this would be a big loss. What is it for? Apple, a6 big embarrassment. Are you ready for some 5G chip history, Kelly, because I’m going to give it to you right now? So back in 19, these two companies settled their dispute over what modem goes in their Qualcomm wants to superb iPhone.
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[Company Update] Qualcomm (QCOM.O)My latest survey indicates that Apple's own iPhone 5G modem chip development may have failed, so Qualcomm will remain exclusive supplier for 5G chips of 2H23 new iPhones, with a 100% supply share (vs. company's previous estimate of 20%).
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) June 28, 2022
So because they use these 5g modems, apple doesn’t want to pay it. They settled. Apple said we’re going to use your modems for five years. Well, that’s 2024. In the meantime. They bought an intellectual bond business and set up a shop in Qualcomm’s backyard in San Diego. Saying we’re going to develop our own 5 g modem. So in five years, we’re going to.
Now this report from Nancy quote, who’s pretty accurate when it comes to future apple products. Send that to question, are they going to be ready in 2024 to put their own homegrown 5g modem, or do they keep having to pay Qualcomm? That’s where we’re at right now and apple had high-profile success with replacing Intel chips in some of its laptop desktop desktops and one chip and 1 m 2 chips. I think they’re called rave reviews. They run more coolly. Things like that.
What would it tell us if they’re having more of a problem replacing these Qualcomm modem chips is very hard. The call comes from doing this way longer than apple’s been doing it so that’s why Apple was using some of Intel’s products in some of their phones. But they weren’t performing as well.
So what Apple did is we’re gonna buy that business from mental and see if we can improve it and make it just as good, if not better than the Qualcomm modems, but at the end of the day, they have to use what works the best. So if that means Qualcomm in 2024, that’s what they’re going to do in a way. It’s a tale about Intel as well.
If this is a development pipeline that they looked at from that company. By the way, until itself gave up in the Apple bottle. Wow. So why is this such a challenge I mean, just quickly come then obviously investors would feel.