Apple to make iOS devices without Qualcomm parts

Apple is designing iPads and iPhones for 2018 that do not use components from Qualcomm amid an escalating dispute between the companies, according to a person familiar with the matter.

The product plans are in the early stages and may still change, said the person, asking not to be identified because the matter is private. Apple may use modem chips from Intel and MediaTek instead of Qualcomm’s, the person said. Apple made the decision amid a dispute over the iPhone maker’s access to the San Diego-based company’s proprietary technology, said people familiar with the matter.

Shares of Qualcomm were down 4 per cent at 5:55 am in New York.

Apple and Qualcomm have been fighting each other over patent licensing with the iPhone maker accusing the chip designer of abusing its market dominance with high royalties. Qualcomm has fought back and is seeking to stop Apple from making and selling its smartphones in China.

An Apple representative said the company doesn’t comment on future products. Apple made the decision about next year’s products because San Diego-based Qualcomm withheld software needed to test chips in prototypes, the Wall Street Journal reported.

“The Qualcomm modem that could be used in the next generation iPhone has already been fully tested and released to Apple,” Qualcomm said in a statement to Bloomberg News. “We are committed to supporting Apple’s new devices consistent with our support of all others in the industry. Qualcomm’s wireless solutions remain the gold standard for premium tier smartphones.”

Bloomberg