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Qualcomm and Apple settle lawsuit, plus, a look at the streaming service war | TECH(feed)

Computerworld | Apr 18, 2019

Qualcomm and Apple shocked many when the two companies settled their global, multi-billion dollar lawsuit. What could this settlement mean for 5G iPhones? Meanwhile, Intel pulls out of the 5G smartphone market. And, Netflix's earnings show it is still the king of streaming despite a growing field of competition.

Copyright © 2019 IDG Communications, Inc.

Hey everyone, welcome back to tech feed. I’m juliet beauchamp. The past few days have been full of big tech news and today we’re talking the shocking end to apple’s legal battle with qualcomm, intel exiting a portion of the 5-g market and the war of streaming services. Stick around.

In a surprise to many, qualcomm and apple have reached a settlement to end an ongoing lawsuit. And the settlement included a payment from apple to qualcomm. The two companies had been engaged in a global, multi-billion dollar lawsuit over qualcomm’s licensing models. Basically, apple argued qualcomm wanted too much money, while qualcomm argued it should be able to profit from its own products. The two companies also made a six-year licensing agreement. Of note here is that qualcomm manufactures smartphone chips, among other things. And its high speed chips for wireless devices will prove necessary as apple transitions into 5-g iphones. But, this agreement doesn’t necessarily mean a 5-g iphone is on the horizon. The infrastructure needs to be in place before customers can enjoy 5-g’s promised high speeds and low latency.

And shortly after news broke about the apple/qualcomm settlement, intel announced it would exit the 5-g smartphone market. The company said it will continue to look into the opportunities for 5-g modems in other devices, such as pcs and iot devices. It will also invest in its 5-g network infrastructure, which is of course required for these 5-g enabled devices. These hyped up phones and other wireless devices need a network to connect to. Originally, intel had plans to release 5-g modems for smartphones in 2020. However, the company’s ceo said there is quote “no clear path to profitability and positive returns” for intel’s 5-g smartphone modem business.

And switching gears to streaming… let’s talk netflix. The streaming giant announced its first quarter revenue beat estimates, but it hinted at a potentially slower q-2. This comes as a number of new video streaming services have been announced… think disney plus, apple tv plus, and whatever warnermedia has up its sleeve. Nevertheless, in a letter to investors, the ceo of netflix said he wasn’t worried about those competitors. And in fairness, netflix doesn’t have much to worry about right now. It’s valued at 157 billion dollars and is home to a number of popular original shows and movies. In fact, it’s expected to invest 15 billion dollars into content this year. And in an effort to offset this investment, netflix has previously announced it will raise prices in brazil, mexico and some european countries. Even if netflix is king, don’t expect other streaming services to stop vying for that title. For one, hulu recently bought back a-t and t’s 9.5 percent minority stake in its company for 1.43 billion dollars. That values hulu at 15 billion dollars. Be sure to keep an eye on these streaming wars--with more services rolling out soon, it’s bound to get more and more competitive.

Thanks for watching today’s episode of tech feed. If you liked this video be sure to give it a thumbs up and subscribe to our channel. And for more on these stories, check out the links below. And let me know in the comments how you feel about all this 5-g news. Is it all talk? When do you want to see some truly 5-g enabled devices? See you next time.
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