Apple demanded that Qualcomm $ 1 billion, to use the chips in the iPhone
In the case between Qualcomm and Apple, new details about which said Qualcomm CEO Steve Mollenkopf and Apple’s Vice President of procurement Tony Blevins.
Steve Mollenkopf gave testimony to the Federal trade Commission of the United States. CEO of Qualcomm continued to defend the business practice of the company, which Apple calls a monopoly.
Qualcomm has a policy of “no license, no chips”. Under this policy, companies such as Apple, needs to obtain a license to Qualcomm’s patents before she sell modems. The head of Qualcomm said that the way the company protects its technology.
Mollenkopf also told the story about how Apple has turned to Qualcomm proposal for the exclusive supply of chips for the iPhone in exchange for the incentive payment in the amount of one billion dollars. In response, Apple representatives said that the money was needed to cover the costs of the transition to the new chips.
Apple’s Vice President of procurement Tony Blevins testified as a witness. He remembered one of the first meetings with Qualcomm when Apple was looking for suppliers of modems for iPad mini 2.
Blevins was hoping the iPad mini 2 will be able to help start a longer-term relationship with the manufacturer of the chips and for this purpose organized a meeting with Executive Vice President of Qualcomm Christian Amun in 2013. Amon said, “I’m your only choice, and I know that Apple can afford to pay.” From that moment, Apple began to look for ways how to get rid of the influence of Qualcomm.
Apple senior Vice President also spoke about how the company tried to get samples of chips from Qualcomm:
We appeal to potential vendors and ask to send samples and technical specifications for cost analysis. With Qualcomm we were surprised. Instead of offering samples and specifications, we received a letter stating that they have a license agreement that must be signed before obtaining any samples.
According to Mollenkopf, licensing strategies Qualcomm allow the manufacturer to invest in technology in the early stages to Fund further research and development.
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