`Case 5:19-cv-00036—RWS Document 66-36 Filed 08/27/19 Page 1 of 8 PageID #: 3454
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`Case 5:19-cv-00036-RWS Document 66-36 Filed 08/27/19 Page 2 of 8 PageID #: 3455
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`Apple, Qualcomm will bring you a 5G iPhone -- just not this year - CNET
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`Apple, Qualcomm will bring you a
`5G iPhone -- just not this year
`In a nutshell, there isn't enough time to get the modems
`ready for September.
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`B Y S H A R A T I B K E N
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`| A P R I L 1 7, 2 0 1 9 2 : 4 0 P M P D T
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`11
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`A 5G iPhone could launch in 2020.
`Getty Images
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`Apple and Qualcomm have resolved their legal battle, likely so iPhones get
`5G chips sooner. But that doesn't mean we'll see a 5G iPhone this year.
`
`On Tuesday, the two sides announced a surprise ending to their patent
`licensing battle, resolving a two-year dispute over Qualcomm's licensing fees.
`Apple had accused Qualcomm of anticompetitive practices that pushed chip
`prices higher, restricted competition and weighed on customer choice.
`Qualcomm had countered by saying the iPhone wouldn't be possible without
`its technology, so it should get paid for its innovation.
`
`The agreement settles all litigation between the companies worldwide. Apple
`also signed a multiyear chipset supply agreement with Qualcomm, gaining
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`Play Sound
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`Case 5:19-cv-00036-RWS Document 66-36 Filed 08/27/19 Page 3 of 8 PageID #: 3456
`8/22/2019
`Apple, Qualcomm will bring you a 5G iPhone -- just not this year - CNET
`access once again to the company's high-end modems. That includes
`Qualcomm's 5G chips.
`
`Now playing: Apple, Qualcomm go head-to-head -- with
`billions at stake
`
`3 : 1 4
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`After years of work on 5G networks, hyped as the life-changing foundation
`for augmented reality, telemedicine and other tech trends, the super-fast
`wireless technology is being rolled out. Carriers are turning on their networks,
`and virtually every major Android handset maker has touted plans to launch a
`5G device this year. Apple hasn't.
`
`The company had been working with Intel on 5G chips, but the chipmaker
`had problems developing the product. A few hours after Apple and
`Qualcomm announced their settlement Tuesday, Intel said it's exiting the 5G
`smartphone modem business. Intel's struggle with 5G is likely what brought
`Apple to the bargaining table with Qualcomm.
`
`Apple didn't immediately respond to a request for comment. Qualcomm CEO
`Steve Mollenkopf, during an interview with CNBC, declined to say when a 5G
`modem could show up in the iPhone.
`
`"We won't talk about Apple's product plans," he said. "There's obviously the
`beginning ramp of 5G broadly."
`
`Even though Apple and Qualcomm are working together again, iPhones
`won't immediately roll out with 5G. At the earliest, Apple may be able to
`introduce a 5G device in 2020.
`
`Here's why:
`
`Modems are complex
`
`Putting a modem in a phone isn't as simple as just buying the component.
`And a phone needs more than a modem to connect to a cellular network.
`Phone designers need access to software from the modem maker, and a
`phone also requires radio frequency chips and other components that take
`up space in the device. The size and capabilities of the modem can dictate
`aspects of the iPhone's design itself.
`
`Phone makers also need to be able to test the modems in their devices
`before they go into mass production. Carriers require time to certify the
`phones to ensure they work properly on their networks and provide the
`promised upload and download speeds.
`
`S E E A L S O
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`Apple and Qualcomm settle licensing dispute amid trial's opening
`arguments
`
`Intel says it will exit 5G phone modems just hours after Apple,
`Qualcomm settle
`
`Play Sound
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`Apple and Qualcomm settle: Here's what it means for your next
`iPhone
`
`Galaxy S10 5G, Mate X, Motorola Mod: Why you shouldn't rush to
`buy a 5G phone
`
`https://www.cnet.com/news/apple-qualcomm-will-bring-you-a-5g-iphone-just-not-this-year/
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`Case 5:19-cv-00036-RWS Document 66-36 Filed 08/27/19 Page 4 of 8 PageID #: 3457
`8/22/2019
`Apple, Qualcomm will bring you a 5G iPhone -- just not this year - CNET
`Because 5G is a new standard, certification and testing aren't as routine as
`they've become with 4G LTE devices. There are a couple different flavors of
`5G, millimeter wave and sub-6GHz, and carriers are split on which to roll out
`first. Verizon and AT&T are opting for millimeter wave, while T-Mobile is
`focusing on sub-6GHz.
`
`Apple typically starts selling its iPhones as soon as they're unveiled, and it
`sells them in high volumes from the beginning.
`
`"They have to have the design completely and utterly finalized by the
`springtime before they ship it in the fall," Technalysis Research analyst Bob
`O'Donnell said. "That means everything has been done, tested, evaluated
`and run through all the carriers. That process takes months."
`
`Apple's next iPhones likely will hit the market in September, only five months
`from now. That's too late for all of the testing needed for Qualcomm's 5G
`chips.
`
`Handset makers need early access to chips
`
`Using a modem in a phone requires close cooperation between the handset
`maker and the chipmaker. Modem suppliers give samples to companies as
`many as 18 months before the chip shows up in phones, and they often have
`reference designs to start testing before their phones are finalized.
`
`Typically, Android companies launch phones about eight months after
`receiving modem samples. Apple requires its modems earlier than Android
`vendors.
`
`Apple started talking to modem suppliers two years in advance of the first
`iPhone launch, Tony Blevins, the company's vice president of procurement,
`said in a January trial.
`
`It no longer needs chips quite as early. Generally, Apple launches an iPhone
`about a year after it gets wireless chip samples.
`
`Close up with the Galaxy Fold screen,
`notch and hinge
`
`6 0 P H O T O S
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`Still, Apple may be cutting it close, timing-wise, to have 5G in its fall 2020
`iPhones.
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`Play Sound
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`"We believe Apple and Qualcomm needed to start working together by April
`in order for Apple to launch 5G enabled smartphones for its September 2020
`iPhone launch timeframe," Canaccord Genuity analyst Mike Walkley noted.
`
`Qualcomm's multimode 5G chip isn't widely available
`until next year
`
`https://www.cnet.com/news/apple-qualcomm-will-bring-you-a-5g-iphone-just-not-this-year/
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`Case 5:19-cv-00036-RWS Document 66-36 Filed 08/27/19 Page 5 of 8 PageID #: 3458
`8/22/2019
`Apple, Qualcomm will bring you a 5G iPhone -- just not this year - CNET
`Though everyone is using the same wireless technology, the carriers are
`employing different bands of spectrum. And the first-generation chip and
`antennas can't tap into all of those frequencies at the same time.
`
`Most 5G phones available this year (except for those from Huawei) will use
`Qualcomm's X50 modem. The chip only connects to 5G networks, which
`means handset makers also have to include a second modem for 4G, 3G and
`2G in their devices. And the first phones are tied to a specific carrier. In other
`words, the 5G phone you buy for Verizon will work only on Verizon's 5G
`network.
`
`Once Qualcomm's upcoming X55 chip and new radios are out, a phone will
`be able to run on all major spectrum bands, all over the world. That means
`we'll get unlocked 5G phones -- if that's what the handset makers choose.
`And there will be no need for a handset maker to also buy a separate 4G
`chip.
`
`The X55 will start showing up in devices later this year, Qualcomm said, but
`when it comes to X55-powered handsets, they're more likely to hit in 2020,
`Qualcomm President Cristiano Amon told CNET in an interview in February at
`Mobile World Congress.
`
`"There are some [phone makers] who are aggressive with their launch dates,"
`Amon said. "We could see some X55s but most of the smartphones coming
`from Q2 all the way to the holiday season will be [powered by the] … X50."
`
`Qualcomm needs time to customize modems for Apple
`
`Apple designs its own application processor -- the brains of the iPhone -- but
`it relies on third-party chips like those from Qualcomm for network
`connectivity. All Android vendors use Qualcomm's Snapdragon processors
`that integrate the modem with the application processor. That improves
`battery life and has other benefits.
`
`S E E A L S O
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`Qualcomm: 5G Android flagship phones will storm the 2019
`holidays
`
`Qualcomm wouldn't release modems as often without Apple's
`business
`
`5G will rule on high-end phones by year's end, ready or not
`
`Samsung Galaxy S11 5G may be slimmer, last longer thanks to
`Qualcomm
`
`For Apple, Qualcomm takes the modem it embeds into its Snapdragon
`processors, wraps a different chipset around it and includes different
`software and other items to make it work in iPhones. Because Apple is the
`only Qualcomm smartphone customer that requires a standalone modem,
`Qualcomm has to custom-build its chips.
`
`Qualcomm CTO James Thompson testified in a January trial that it costs the
`company about $250 million a year to tweak its modems for Apple.
`
`Qualcomm and Apple haven't been talking or working together for months,
`which means Qualcomm likely doesn't have a standalone modem ready for
`Apple.
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`Play Sound
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`Case 5:19-cv-00036-RWS Document 66-36 Filed 08/27/19 Page 6 of 8 PageID #: 3459
`8/22/2019
`Apple, Qualcomm will bring you a 5G iPhone -- just not this year - CNET
`"It usually takes about 18 months to go from a dead stop" to having a modem
`ready for Apple, Bernstein analyst Stacy Rasgon said.
`
`Once the companies started talking settlement several weeks ago, Apple
`asked its suppliers to begin testing Qualcomm's current 5G modems, Nikkei
`reported Tuesday.
`
`5G networks are still new
`
`Even if a modem was ready for Apple in 2019, it's unlikely it would leap into
`5G right away. The company rarely moves early on new technologies, opting
`to wait for bugs to be worked out first. It lagged behind Android rivals in
`adopting mobile payments and wireless charging, and it was at least a
`generation behind in adopting 3G and 4G LTE cellular capabilities. The same
`delay has been expected with 5G.
`
`For everyone else, 5G is in its very early days. Most vendors will launch only
`one 5G model early this year, and Motorola's Moto Z3 phone with a 5G Moto
`Mod is the only device currently on the market in the US. Verizon is the only
`carrier with a live 5G wireless network, but its initial deployment has been
`spotty.
`
`By late 2020, those bugs will all be worked out. 5G will be in more cities, and
`essentially all Android flagship devices will tap into the fast network.
`
`Apple won't be too far behind if it doesn't have a 5G phone in 2019. But if it
`misses 2020, it could be devastating to its phone business.
`
`"Every major transition in mobile technology has its winners and losers," CCS
`Insights analyst Geoff Blaber said. "Apple simply couldn't afford to risk its
`business over a long term licensing dispute."
`
`iPhone XS, XS Max and XR: 27 tips
`and tricks to master Apple's latest
`phones
`
`2 8 P H O T O S
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`Apple, Qualcomm will bring you a 5G iPhone -- just not this
`year
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`S E E A L L
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`Case 5:19-cv-00036-RWS Document 66-36 Filed 08/27/19 Page 7 of 8 PageID #: 3460
`8/22/2019
`Apple, Qualcomm will bring you a 5G iPhone -- just not this year - CNET
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