The world’s two largest budget smart phone makers in the world, Huawei and Samsung, rarely outsource their modem chips and they usually supply a majority of their own modem chips in order to connect their devices with the wireless network, evidences presented at an antitrust trial for the Chip Supplier Qualcomm revealed.
On Friday, the Jan. 4th, in a federal courtroom in California, a trial between the Qualcomm Inc. and US Federal Trade Commission kicked off, while the regulators had been arguing that the chipmaker was engaged in an anticompetitive licensing practice for preserving a monopoly on modem chips, Investors have been observing the trials closely, as it might influence the outcome of the widely spread battle between Apple Inc.
and Qualcomm Inc., as Qualcomm had accused Apple of passively violating its patents and Apple alleged that the Qualcomm was engaged in illegal business practices. According to the IDC’s Phil Soils, the Qualcomm controlled 59.6 percent of 4G modem chips in 2017 and the market was worth $15.3 billion.
As an attempt to defend themselves against the accusations of illegal business practice regarding the monopolization of 4G modem business, the Qualcomm presentation revealed that only 22 percent of Huawei 4G modem chips were outsourced from Qualcomm, while 38 percent of Samsung 4g modem chips were Qualcomm made.