When Apple sues someone, it's a big deal. Bye Qualcomm.
Qualcomm isn't going anywhere. It's a Wall Street favorite. Big investors will stick by the company and I wouldn't be surprised if the share price surges in response. It's more likely negative press will finger Apple for being in a lawsuit and cause Apple's share price to fall. It seems no matter what Apple gets into there will be the news media always saying Apple will suffer
Check the stock ticker. QCOM is down over 10% while Apple has been stable.
Apple and Samsung make up over 40% of QCOM's revenue. The Korean and US lawsuits stand to change QCOM's revenue model substantially.
Apple is fine. And if they've committed to Intel, it means that Intel has other more substantial advantages. And with Apple driving development in conjunction with Intel, Intel's modems will soon be outperforming QCOM ones. Apple is always willing to purchase the best components. They may be tough negotiators, but they are willing to purchase the highest performing components.
If they went to an inferior modem from Intel, it means that Intel very likely has other very compelling technologies that Apple wants preferred access to.
Intel is making a move to 10 nm soon and quite serious about it. It makes me wonder if Apple is planning on producing the A10X on Intel fabs. The iPad sells at much lower volume than the iPhone and may provide the best opportunity for Intel winning back Apple's business. Pure speculation on my part, but the delay in new iPad models seems to coincide with Intel's move to 10 nm.
QCOM should have just stuck with modems. They would be far better off. Their licensing model is about to be squashed.
Haven't they always offered a patent licensing program? I know when I invested in them a couple decades ago that was the big moneymaker with huge potential and not the fact they sold modems. My stock investing days are behind me anyway so share price doesn't concern me anymore.
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