Apple and Qualcomm dropped the legal battle and reached an amiable settlement. This also means that Apple’s 5G phone will be rolled out earlier than anticipated. Experts believe that Apple agreed for the settlement because it had to choose between the least evil solutions and certainly it did so.
The first option was to reach a settlement with Qualcomm, who is an undisputed leader in 5G segment. Its chips are being used in some devices today. The problem is with the way Qualcomm operates. It has been using its leading position to fork out massive fees from companies using chips and patents from Qualcomm.
Another option was to wait until Intel picks up the 5G game. The company was already running behind schedule. All latest iPhones are using 4G modems from Intel. Now, Intel is out of the game by announcing that it is exiting the 5G modem plans.
Apple’s 3rd option was Huawei. Recently Huawei said it was ready for talks with Apple. But in line with the bad clout that Huawei has gathered politically over the security concerns, it was best for Apple not to consider Huawei.
The last option was to Apple making its 5G chips. It had been perceived that Apple was working on manufacturing modems after it opened the San Diego office and came out with job listings for chip designers for modem. This option would have cost several years till it finally could develop 5G chip, giving a free way to competition to stay ahead in the market.
So, for Apple not one of those options worked as a best fit. If Apple had waited another year, competitors such as Samsung and Google would have raced ahead with 5G, thus taking a position of being more innovative than Apple. Huawei would raise security issues and therefore it was best for Apple to settle dispute with Qualcomm.