Newsletter #08 – CSUDH Innovation Incubator

Tips:

In a surprise move, Apple settled its patent lawsuit with Qualcomm this week. The settlement sent Qualcomm stock soaring over 30%, and it marked a big defeat for Apple. The company will now have to pay the IP licensing fees it was suing Qualcomm to avoid.

Why would Apple, the world’s first trillion-dollar company, back down? The answer has to do with 5G.

Qualcomm is the leading producer of 5G chips, which Apple will need if it wants to bring the iPhone to 5G networks. Apple has no other immediate options for these chips either—shortly after Apple’s settlement, Intel announced it was scrapping its 5G plans, and buying from Huawei, the other major 5G chip manufacturer, could introduce political and security risks for Apple.

All of this turmoil highlights just how important 5G is for the future of mobile technology.

While 4G networks are powerful enough to, say, stream Netflix on the bus, more ambitious technology—like Nissan’s plan to put a three dimensional, AR-powered driving assistant in your passenger seat—will require 5G networks. Google’s Stadia, which streams graphically intense video games, is also expected to be an early beneficiary.

The future of mobile technology, it seems, is going to happen in 5G. And as of now, if you want to manufacture a 5G phone, there are only a few companies to go through. That means makers like Qualcomm and Huawei are effectively the gatekeepers for a new generation of mobile technology.