Apple Halts Use Of Qualcomm Tech In IPhones – Has Biggest Drop Ever In IPhone Sales
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Apple iPhone Sales Drop at Record Pace:
“Sales of Apple’s iPhones fell at their steepest-ever rate, according to data for the three months to the end of March.
“The firm said revenue from the iPhone dropped by 17%, compared with the same period a year earlier….
“Yoram Wurmser, principal analyst at eMarketer, said long-term growth in services and, to a less extent, other devices ‘depend on having as many users as possible in the Apple ecosystem, and that’s still primarily about the iPhone.’
“‘The long-term growth of the company still depends directly and indirectly on iPhone sales,’ he added.
Everyone who pays attention to these things – saw this coming. From January:
There’s Even More Evidence that iPhone Sales May Be About to Drop for the First Time Ever:
“Industry executives say the latest iPhone did not have enough new features from the previous model to tempt users, raising fears that Apple’s innovative streak – and the profits it has generated – may be running its course….
“‘The pace of innovation has slowed. Apple is going toward the same direction as other brand names,’ said another Taiwanese Apple supplier.”
But you know of what none of these Jurassic Press stories make note? Do you know why Apple is falling back into the pack?
Behold – the backstory.
Apple has been using Qualcomm (Q)’s patented tech for its wireless products – for years and years.
Without Qs amazing array of patented tech – for example, Q invented the way to connect cell phones to the Internet – the iPhone would have been a skinny rotary phone.
Because Qs patented tech was so good – and incredibly profitable for Apple – Apple signed all sorts of contracts. In which they promised to pay Q for its patented tech – so Apple could continue using it.
On a $1,000 iPhone X – Apple was obligated to pay Q $13. Or 1.3%.
In a stunning display of short-term cheap and long-term stupid – Apple decided that was too much.
So in February 2017, Apple stopped making its contractually obligated payments to Q.
Apple continued to sell tens of billions of dollars worth of products containing Qs patented tech – they just stopped paying for the right to do so.
Needless to say, lawsuits aplenty were filed – in very many directions.
After eighteen months of stealing billions of dollars from Q – Apple went to Q competitor Intel. Where the lawbreaking was expanded.
Apple’s Latest Heist: Stealing Qualcomm’s IP – And Handing It to Intel
Intel has spent two decades proving time and again they can’t compete with Q.
Unable to create tech like Qs – Apple helped Intel illegally replicate Qs tech.
It was Apple’s attempt to finally ditch Q.
Except that didn’t even help Apple a little. Intel – even with the stolen Q tech – was yet again a pale imitation of Q.
Intel’s LTE Modems in iPhone XS/XS Max Unable to Match Qualcomm Speeds:
“Intel’s XMM7560 modem found in the iPhone XS and XS Max is the company’s first modem to support all four US wireless carriers, allowing Apple to ditch Qualcomm for its latest iPhones….
“Looking at some exclusive new data from Cellular Insights and Ookla Speedtest, it is quite evident that LTE download speeds on the iPhone XS and XS Max are a massive improvement when compared to the iPhone X.
“However, they are unable to match the Qualcomm X20 modem’s performance found in the Samsung Galaxy Note 9.”
Once and yet again – Q beats Intel.
That’s the backstory.
Again, as a reminder: The first full quarter Apple used Intel tech instead of Q tech – this happened:
Apple iPhone Sales Drop at Record Pace
“Sales of Apple’s iPhones fell at their steepest-ever rate, according to data for the three months to the end of March.
“The firm said revenue from the iPhone dropped by 17%, compared with the same period a year earlier….”
Because this happened:
“Industry executives say the latest iPhone did not have enough new features from the previous model to tempt users, raising fears that Apple’s innovative streak – and the profits it has generated – may be running its course….
“‘The pace of innovation has slowed. Apple is going toward the same direction as other brand names,’ said another Taiwanese Apple supplier.”
Apple stopped using Q tech – and its iPhone suddenly “did not have enough new features from the previous model to tempt users.”
Funny how that works.
Up next for wireless devices – and the entire wireless world – is the Fifth Generation (5G) network. A quantum leap forward – and a place where hundreds of billions (trillions?) of dollars will be made.
Just not by Intel. You know, Apple’s alleged replacement for Q:
Intel Dropped a Bombshell and Said It’s Giving Up on the 5G Smartphone Business:
“There is no clear path to profitability and positive returns.”
Well, not when you can’t invent cool and creative stuff.
You know – like Q continues to do.
This unbelievable announcement – almost immediately led to this:
Apple Finally Admits They’ve Been Stealing Billions of Dollars from Qualcomm For Years
Qualcomm Sees Up to $4.7 Billion Payment from Apple Deal
Ouch:
“Apple paid a high price to end a bitter legal battle that spanned multiple continents and threatened Apple’s ability to release a 5G iPhone and put pressure on Qualcomm’s licensing business model that contributes over half of the company’s profit.”
Apple in fact got off light and easy.
Now reunited, I’m quite sure Q will again restore Apple’s iPhone tech and sales dominance.
Just as Q had done for Apple for more than a decade.
Before Apple took leave of the law and its senses – on a flight of titanically stupid fancy.
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Seton Motley is the President of Less Government and he contributes to ARRA News Service. Please feel free to follow him him on Twitter / Facebook.
Tags: Seton Motley, Less Government, Apple Halts, Qualcomm Tech In IPhones, Biggest Drop Ever,IPhone Sales To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service and "Like" Facebook Page - Thanks!
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