A 5G iPhone will cost Apple about $21 in licensing fees to Nokia, Qualcomm, and others
Apple could theoretically end up paying $21 or more per phone to cover licensing fees from 5G-related patents for future iPhones, in large part because of Qualcomm.
Nokia on Wednesday announced a flat, 3 euro ($3.48) per-device licensing fee for its 5G standards-essential patents, according to VentureBeat. That contrasts with Ericsson, which is charging on a sliding scale between $2.50 and $5 based on the cost of a device.
Qualcomm, however, is licensing its 5G patents at 2.275 percent of a single-mode phone's total price, and 3.25 percent for multi-mode phones, albeit with a $400 price cap.
A modern smartphone could potentially be saddled with over $21 in combined royalty payments. Around $13 will go to Qualcomm regardless of any current spats.
All of the patent-holders have not yet chimed in on the rate. So, while volume fee arrangements may reduce the $21 per device somewhat, the other companies involved, like Huawei, will push the figure up.
While it is not specifically known what Apple pays per iPhone for 4G technologies, the licensing isn't as simple as what has been worked out for 5G technologies, and is thought to be much higher than the approximate $21 expected for 5G.
Apple and Qualcomm are engaged in a global legal battle over patents and royalties. Apple began the war in January 2017 with a $1 billion lawsuit, claiming Qualcomm abuses its "monopoly power" to demand high royalties and force chip buyers to license patents. The chipmaker countered in April, and the pair have since lodged multiple complaints in domestic and international courts, roping in other Apple suppliers as well.
This year's iPhones are set to use Intel modems exclusively. They are nearly certainly going to skip 5G this time around, since the standard was only finalized in June, and U.S. carriers are only just beginning to deploy coverage.
Nokia on Wednesday announced a flat, 3 euro ($3.48) per-device licensing fee for its 5G standards-essential patents, according to VentureBeat. That contrasts with Ericsson, which is charging on a sliding scale between $2.50 and $5 based on the cost of a device.
Qualcomm, however, is licensing its 5G patents at 2.275 percent of a single-mode phone's total price, and 3.25 percent for multi-mode phones, albeit with a $400 price cap.
A modern smartphone could potentially be saddled with over $21 in combined royalty payments. Around $13 will go to Qualcomm regardless of any current spats.
All of the patent-holders have not yet chimed in on the rate. So, while volume fee arrangements may reduce the $21 per device somewhat, the other companies involved, like Huawei, will push the figure up.
While it is not specifically known what Apple pays per iPhone for 4G technologies, the licensing isn't as simple as what has been worked out for 5G technologies, and is thought to be much higher than the approximate $21 expected for 5G.
Apple and Qualcomm are engaged in a global legal battle over patents and royalties. Apple began the war in January 2017 with a $1 billion lawsuit, claiming Qualcomm abuses its "monopoly power" to demand high royalties and force chip buyers to license patents. The chipmaker countered in April, and the pair have since lodged multiple complaints in domestic and international courts, roping in other Apple suppliers as well.
This year's iPhones are set to use Intel modems exclusively. They are nearly certainly going to skip 5G this time around, since the standard was only finalized in June, and U.S. carriers are only just beginning to deploy coverage.
Comments
A1901 = Intel modem
Even then, that would effect your cellular internet speeds, not your reception (although reception/signal strength further impacts speeds).
smh
Absolutely lame. There are only a couple markets I can think of where the price you pay for a component (or software) is based on the retail price of the product it goes into. Smartphone cellular patents is one and game engines is another. Every other industry I've worked in (automotive and electronic components primarily) you pay a fixed fee for a component.
Imagine, for example, if Microsoft starting charging customers with high-end gaming rigs or workstations double or triple for Windows 10, just because it's running on a more expensive machine? Or Apple having to pay double for RAM or NAND flash chips that go into a Mac while manufacturers of $300 PCs get it for a discount?
This is the most ridiculous licensing model I've ever seen.
In fact if you really look into it 3-6% of sales price is a really common royalty basis for IP licensing across multiple industries. It's not as uncommon as you think.
So another bunch of greedy aholes who abuse their IP.
Pointing out others who do something similar doesn't make them right.
http://carrier.huawei.com/en/events/mwcs2018/mwcs18-keynote-5g-mbb
I wish they would stop using 3rd party modems altogether. Apple makes everything better.
Yea, not going to happen but I'm tired of FRAND patents costing so much. $21 doesn't sound like a lot but that's only for cellular patents, their are a lot of other royalties Apple has to pay for.