SAN FRANCISCO — Apple is working on designs for iPhones and iPads that use modem chips from Intel and Mediatek rather than Qualcomm, according to multiple media reports citing unnamed sources.
Apple may replace Qualcomm modems in the next-generation iPhone set for release next fall, according to the reports by the Wall Street Journal, the Reuters news service and the Bloomberg news service, among others.
Qualcomm has supplied basebands chips for every generation of iPhone and iPad since the first model debuted 10 years ago. However, the relationship between Apple and Qualcomm turned adversarial early this year, and the two companies are currently awaiting trial in a $1 billion lawsuit filed in U.S. federal court by Apple in January over the royalties that Apple pays to Qualcomm, which Apple has called excessive.
Qualcomm's chip sales to Apple are projected to be worth about $2.1 billion this year, or about 13 percent of its total revenue, according to a report by the Wall Street Journal. Apple paid Qualcomm about $2.8 billion in royalties last year, according to the report.