A significant development has occurred in the smartphone market that could shift the balance. Recent reports indicate that ARM has decided to terminate its licensing agreement with Qualcomm. This situation seems poised to deliver a severe blow to the production of Snapdragon processors, which are found in a wide range of devices from flagship models to entry-level phones.
ARM Has Terminated Qualcomm’s Processor License
According to a document obtained by Bloomberg, ARM has issued a 60-day notice regarding the cancellation of Qualcomm’s architectural license, which allows the company to design chips based on ARM technology. While the outcome of this process remains uncertain, if the license is indeed revoked at the end of the period, it may become increasingly challenging to see smartphones and tablets powered by Snapdragon processors in the future.
Another crucial detail is the speculation that phone prices could rise as a result of this license termination. Should this situation materialize, Qualcomm— which generates $39 billion in revenue in this sector— might experience a slowdown in sales and could face legal challenges. There are even claims that, even if Snapdragon processors were to be released in the future, they may not possess the same technological advancements, leading to further price hikes for smartphones.
The disagreement between the two tech giants dates back to 2022. At that time, Qualcomm acquired NUVIA, a CPU and technology design company licensed by ARM, for $1.4 billion. Following this acquisition, ARM sued Qualcomm, arguing that it violated the terms of their contract.
What are your thoughts on the dispute between Qualcomm and ARM? Feel free to share your opinions in the comments section!
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