Covid-19: Apple shuts stores worldwide, except Greater China until Mar 27

Apple Inc. said Saturday it’s closing its hundreds of retail stores outside of Greater China until March 27 and is moving to remote work in order to help reduce the spread of coronavirus.

In a letter posted on Apple’s website, Chief Executive Officer Tim Cook said that the “most effective way to minimize risk of the virus’s transmission is to reduce density and maximize social distance,” which led to the decision to temporarily close the stores and move corporate employees outside of Greater China to work remotely.

Apple has nearly 460 locations across the world outside of China, including about 270 stores in the US Apple had earlier shuttered its stores in Italy and Spain as the world deals with the Covid-19 pandemic.

Cook said that all hourly employees at the closed stores will continue to receive normal pay. He also said that the Cupertino, California-based technology giant has donated $15 million to fight coronavirus and that it would be matching employee donations two-to-one.

Cook didn’t say how long the remote work edict will last, but he said that “those whose work requires them to be on site should follow guidance to maximize interpersonal space.” Apple employees at several offices had been encouraged to work remotely this past week. Cook closed his letter by thanking “the heroic first responders, doctors, nurses, researchers, public health experts and public servants” working to fight the pandemic.

The store closures is an extension of its efforts to cope with the outbreak. Cook sent a memo to employees about a week ago offering staff at most of its global offices the ability to work from home. At the time, he called the outbreak an “unprecedented event” and a “challenging moment.”

As a US-based technology company that builds the vast majority of its products via a China supply chain, Apple has been uniquely impacted by the coronavirus. It’s supply chain had been set back by weeks with factory closures, and products like the iPhone and iPad Pro have seen constraints in meeting orders.

On Friday, Apple said it would hold its annual conference for software developers online, scrapping a June gathering that normally brings thousands of people together in San Jose, California.

Apple was one of the first companies to disclose the virus’s impact on its financials, saying last month that it will no longer meet its March quarter guidance range of $63 billion to $67 billion. It didn’t say how its two week closure of most stores would further impact revenue.

The stock has declined 5.3% this year, compared with the Nasdaq Composite Index’s 12% slump.

Apple closely watching coronavirus outbreak in South Korea, Italy: Cook

Apple Inc is closely watching how the coronavirus outbreak is unfolding in South Korea and Italy, where the company has suppliers, Chief Executive Officer Tim Cook said in an interview.

Apple counts major Korean display makers Samsung Electronics Co Ltd <005930.KS> and LG Electronics Inc <066570.KS> among its suppliers. It also sources chips from a factory in Italy run by Franco-Italian chipmaker STMicroelectronics , according to its most recent supplier list.

Cook told Fox Business Networks that Apple had re-opened 80 percent of its stores in China. He also said that iPhone factories in China had restarted and were in "phase three of the ramp mode."

"It will take some time, but by in large I think this is a temporary condition, not a long-term kind of thing," Cook said.

Asked if Apple would move manufacturing out of China to countries such as Vietnam or Cambodia, Cook said the company's supply chain was global and that the company considered speed to markets and engineering skills in addition to cost. He also said Apple's supply chain managers were examining how resilient to the coronavirus shock the company's supply chains were.

"And so the question for us after we get on the other side will be, was the resilience there or not and do we need to make some changes," he said. "My perspective sitting here today is that if there are changes, you're talking about adjusting some knobs, not some sort of wholesale fundamental change."

Apple last week said it would not meet its guidance for the quarter ending in March and that it would experience supply chain shortages. Cook said he did not know whether the coronavirus would affect the quarter ending in June.

On Wednesday at Apple's annual shareholder meeting, Cook said Apple would open its first retail store in India.

Cook was interviewed in Alabama, where he had traveled to announce a program to teach computer coding in schools.

Apple has secret team working on satellites to beam data to devices

Apple Inc. has a secret team working on satellites and related wireless technology, striving to find new ways to beam data such as internet connectivity directly to its devices, according to people familiar with the work.

The Cupertino, California-based iPhone maker has about a dozen engineers from the aerospace, satellite and antenna design industries working on the project with the goal of deploying their results within five years, said the people, who asked not to be identified discussing internal company efforts. Work on the project is still early and could be abandoned, the people said, and a clear direction and use for satellites hasn’t been finalized. Still, Apple Chief Executive Officer Tim Cook has shown interest in the project, indicating it’s a company priority.

Apple’s work on communications satellites and next-generation wireless technology means the aim is likely to beam data to a user’s device, potentially mitigating the dependence on wireless carriers, or for linking devices together without a traditional network. Apple could also be exploring satellites for more precise location tracking for its devices, enabling improved maps and new features.

It’s not clear if Apple intends to pursue the costly development of a satellite constellation itself or simply harness on-the-ground equipment that would take data from existing satellites and send it to mobile devices. Northrop Grumman Corp., Lockheed Martin Corp. and Boeing Co. are some of the biggest satellite makers. An Apple spokeswoman declined to comment.

Amazon.com Inc. plans to deploy more than 3,000 satellites as part of a future constellation. However, the industry is littered with failures. Iridium LLC filed for bankruptcy protection in 1999, and Teledesic abandoned its “internet from the sky” plan more than a decade ago. Newer efforts from Facebook, SpaceX and Amazon are a long way from generating revenue, and Apple rarely enters new categories without a clear way to make money.

“The lessons of prior failures like Iridium, Globalstar and Teledesic are that it’s really hard to find a viable business plan for multibillion-dollar satellite communications projects,” said Tim Farrar, a satellite expert and principal at TMF associates.

In recent months, Apple has started hiring new software and hardware experts for the team, seeking engineers with experience in designing components for communications equipment. The company has also hired additional executives from the aerospace and wireless data delivery fields.

The team is led by Michael Trela and John Fenwick, former aerospace engineers who helped lead satellite imaging company Skybox Imaging before it sold to Google in 2014. The pair led Google’s satellite and spacecraft operations until leaving together in 2017 to begin a new initiative at Apple, Bloomberg News reported at the time.

During their first year and a half at Apple, Trela and Fenwick explored the feasibility of developing satellite technology and understanding the problem they want to solve, and in recent months have started intensifying work on the project. The effort suffered a setback earlier this year when its previous leader, Greg Duffy, left Apple after joining in 2016. Duffy, the co-founder of camera startup Dropcam, which Google acquired in 2014, reported to Dan Riccio, Apple’s senior vice president of hardware engineering.

On his LinkedIn profile, Duffy said he worked on projects involving “satellite communications, wireless, and home products/technologies.” He declined to comment more specifically on his work at Apple.

Trela and Fenwick still work within Apple’s hardware engineering division, but now report to Riccio’s lieutenant in charge of iPhone engineering.

The team has recently added people from the wireless industry, including engineer Matt Ettus, who now helps lead the initiative, people familiar with the team said. Ettus is one of the foremost names in wireless technologies and created Ettus Research, a National Instruments Corp.-owned firm that sells wireless networking equipment.

Apple has also hired Ashley Moore Williams, a longtime executive from Aerospace Corp. who focused on communication satellites, and Daniel Ellis, a former Netflix Inc. executive who helped oversee the company’s Content Delivery Network, or CDN. Ellis has experience in building networks that can beam content and information on a global scale.

The work on satellite technology is one of several “special projects” -- an Apple term for skunkworks initiatives or development of major new product categories -- under way at the company.

As Bloomberg has previously reported, Apple also is working on a virtual reality headset to debut as early as 2021, augmented reality glasses for launch after that, MicroLED screens for future devices, new home products, self-driving car technology and a future Apple Watch that can analyze a user’s blood chemistry to determine glucose levels. Apple is also expanding its in-house chip development, seeking to replace Intel Corp. as its Mac processor maker, and Intel and Qualcomm Inc. as the providers of its modem component for phones.

Under Cook, Apple has rapidly expanded its research and development budget, spending $16 billion in the 2019 fiscal year, an increase of 14 per cent from the prior year, according to company filings. One of Apple’s primary goals is to bring more of the technology behind its products in house, which is what work on satellites could eventually enable.

Apple digging deep into map policies after calling Crimea part of Russia

Apple Inc is "taking a deeper look at how we handle disputed borders" after it referred to the Russian-annexed Crimean Peninsula as part of Russia in its Maps and Weather apps for Russian users, a company spokeswoman told Reuters on Friday.

Apple spokeswoman Trudy Muller told Reuters that Apple has not made any changes to its maps outside of Russia and made the change for Russian users because of a new law that went into effect in that country.

"We review international law as well as relevant US and other domestic laws before making a determination in labelling on our Maps and make changes if required by law. We are taking a deeper look at how we handle disputed borders in our services and may make changes in the future as a result," Muller told Reuters.

Russia and Ukraine have both been highly sensitive to the way global companies identify Crimea, since Russian troops seized the territory and Moscow annexed it in March 2014 after a referendum that Kiev and its Western allies say was illegal.

Russian and Ukrainian embassies in the United States did not immediately return requests for comment on Friday.

Apple appeared to have changed the way it displays locations in Crimea in its software, in a nod to Russian politicians who have demanded the peninsula be referred to as part of Russia.

Reuters reporters in Moscow who typed the name of the Crimean provincial capital Simferopol into Apple's Maps and Weather apps on Wednesday saw it displayed as Simferopol, Crimea, Russia. Users elsewhere” including in Ukraine's capital Kiev and in Crimea itself” see locations in Crimea displayed without specifying which country they belong to.

Ukraine's foreign minister, Vadym Prystaiko, wrote on Twitter on Wednesday that Apple did not give a damn about the country's pain.

The EU and United States do not recognise Crimea as Russian and have imposed sanctions against the peninsula and individuals they accuse of violating Ukraine's territorial integrity.

Apple Card sparks gender debate, Steve Wozniak flags wife's credit rating

Apple Inc co-founder Steve Wozniak joined in the online debate over accusations of gender discrimination by the algorithm behind the iPhone maker's credit card, fuelling scrutiny of the newly launched Apple Card.

The criticism started on Thursday, after entrepreneur David Heinemeier Hansson railed against the Apple Card in a series of Twitter posts, saying it gave him 20 times the credit limit his wife received.

The much anticipated titanium credit card, part of a broader effort by Apple to derive greater revenue from services after years of heavy reliance on iPhone sales, was launched in August, in partnership with Goldman Sachs Group Inc.

In an email, Goldman said Apple Card applicants were evaluated independently, according to income and creditworthiness, taking into account factors such as personal credit scores and personal debt.

It was possible for two family members to receive significantly different credit decisions, the bank said, but added, "We have not, and will not, make decisions based on factors like gender."

Hansson, who is the creator of web-application framework Ruby on Rails, did not disclose any specific income-related information for himself or his wife but tweeted that they filed joint tax returns and that his wife had a better credit score.

On Saturday, Wozniak chimed in with a similar experience, saying he got 10 times more credit on the card, compared with his wife.

"We have no separate bank or credit card accounts or any separate assets," Wozniak said on Twitter, in reply to Hansson's original tweet.

"Hard to get to a human for a correction though. It's big tech in 2019."

New York's Department of Financial Services said it was beginning an inquiry into Goldman Sachs' credit card practices.

Apple mobilises suppliers to launch its first 5G-compatible iPhones: Report

Apple Inc is mobilizing suppliers to launch its first 5G iPhone range, the Nikkei Asian Review said on Wednesday.

"It will be the first time Apple introduces 5G iPhones ... There will be three of them and the company has set an aggressive sales target," Nikkei quoted a source as saying.

The three new iPhones will carry a 5G modem chip designed by Qualcomm Inc , Nikkei added, citing four people familiar with the plan.

Apple and Qualcomm did not immediately respond to Reuters' requests for comment.

Apple launches AirPods Pro priced at $249; to ship from October 31

Apple Inc on Monday launched Apple AirPods Pro, an upgraded version of its premium wireless earphones with noise cancellation feature.

Priced at $249, the earphones will start shipping on Oct. 30, Apple said, adding that the new AirPods are also sweat and water resistant.

The company is doubling down on its wearables and services units to boost revenue as it faced slowing iPhone sales in recent quarters.

Using iPhone 6s models? Apple says some of them may suddenly stop working

Apple Inc. on Friday said that some iPhone 6s and iPhone 6s Plus models manufactured between October 2018 and August 2019 may not turn on due to a failed part. The company offered a free repair program for users who are affected.

The iPhone 6s line originally went on sale in September 2015, but was officially discontinued in September 2018 with the launch of last year’s iPhones. Still, Apple continued producing some iPhone 6s models for sale in select markets, including India.

The repair program is the sixth for Apple this year, according to the company’s website. Earlier this year, it opened repair or recall programs for the old 15-inch MacBook Pro’s battery, some wall adapters, the 13-inch MacBook Pro display back light, MacBook keyboards, and screens on the Apple Watch Series 2 and Series 3.

Apple takes on EU's powerful antitrust chief in world's biggest tax case

Apple Inc. fights the world’s biggest tax case in a quiet courtroom this week, trying to rein in the European Union’s powerful antitrust chief ahead of a potential new crackdown on internet giants.

The iPhone maker can tell the EU General Court in Luxembourg that it’s the world’s biggest taxpayer. But that’s not enough for EU Competition Commissioner Margrethe Vestager who said in a 2016 ruling that Apple’s tax deals with Ireland allowed the company to pay far less than other businesses. The court must now weigh whether regulators were right to levy a record 13 billion-euro ($14.4 billion) tax bill.

Apple’s haggling over tax comes after its market valuation hit $1.02 trillion last week on the back of a new aggressive pricing strategy that may stoke demand for some smartphones and watches. The company’s huge revenue -- and those of other technology firms -- have attracted close scrutiny in Europe, focusing on complicated company structures for transferring profits generated from intellectual property.

A court ruling, likely to take months, could empower or halt Vestager’s tax probes, which are now centering on fiscal deals done by Amazon.com Inc. and Alphabet Inc. She’s also been tasked with coming up with a “fair European tax” by the end of 2020 if global efforts to reform digital taxation don’t make progress.

“Politically, this will have very big consequences,” said Sven Giegold, a Green member of the European Parliament. “If Apple wins this case, the calls for tax harmonization in Europe will take on a different dynamic, you can count on that.”

Vestager showed her determination to fight the tax cases to the end by opening new probes into 39 companies’ tax deals with Belgium on Monday. The move addresses criticism by the same court handling the Apple challenge. A February judgment threw out her 2016 order for them to pay back about 800 million euros.

Apple’s fury at the EU’s 2016 order saw Chief Executive Officer Tim Cook blasting the EU move as “total political crap.” The company’s legal challenge claims the EU wrongly targeted profits that should be taxed in the U.S. and “retroactively changed the rules” on how global authorities calculate what’s owed to them.

The U.S. Treasury weighed in too, saying the EU was making itself a “supra-national tax authority” that could threaten global tax reform efforts. President Donald Trump hasn’t been silent either, saying Vestager “hates the United States” because “she’s suing all our companies.”

“There is a lot at stake given the high-profile nature of the case, as well as the concerns that have been raised from the U.S. Treasury that the investigations risk undermining the international tax system,” said Nicole Robins, a partner at economics consultancy Oxera in Brussels.

Apple declined to comment ahead of the hearing, referring to previous statements. The European Commission also declined to comment. Ireland said it “profoundly” disagreed with the EU’s findings.

Richard Murphy, a professor at London’s City University, said the EU’s case “is about making clear that no company should be beyond the geographic limits of tax law.”

“Selective attempts to get round the law -- which is what tax avoidance is -- are unacceptable when companies seek the protection and support of that same law” in the rest of their business,” Murphy said.

Vestager has also fined Google some $9 billion. She’s ordered Amazon to pay back taxes -- a mere 250 million euros -- and is probing Nike Inc.’s tax affairs and looking into Google’s taxation in Ireland.

The first hints of how the Apple case may turn out will come from a pair of rulings scheduled for Sept. 24.

The General Court will rule on whether the EU was right to demand unpaid taxes from Starbucks Corp. and a Fiat Chrysler Automobiles NV unit. Those judgments could set an important precedent on how far the EU can question tax decisions national governments make on how companies should be treated.

“It’s very clear that the largest companies in the world -- the frightful five I call them -- are hardly paying taxes,” said Paul Tang, a socialist lawmaker at the European Parliament. “Cases like these, Amazon in Luxembourg or Apple in Ireland, started to build public and political pressure” for tax reform in Europe.

The legal battles may go on for a few years more. The General Court rulings can be appealed once more to the EU’s highest tribunal, the EU Court of Justice. Meanwhile, Apple’s back taxes -- 14.3 billion euros including interest -- sit in an escrow account and can’t be paid to Ireland until the final legal challenges are exhausted.

For Alex Cobham, chief executive of the Tax Justice Network campaign group, the issue is already in the past and “it’s not even the biggest tax scandal that Apple has” after reports on other structures it may use. Tax reforms under discussion “will ensure much closer alignment of taxable profits and the real economic activity” generated by them.

The cases are: T-892/16, Apple Sales International and Apple Operations Europe v. Commission, T-778/16, Ireland v. Commission.

Apple to start online sales in India soon with local sourcing rules eased

Apple Inc is poised to start online sales of its devices in India within months, a person familiar with the matter said, benefiting from new rules making the world’s fastest-growing smartphone market more attractive to foreign brands.

On Wednesday, India eased rules that forced companies such as Apple to source 30% of their production locally -- a requirement the iPhone maker has been lobbying against for years -- to include exports as part of the requirement.

That rule posed a problem for electronics brands because most of its devices and components are manufactured in China. The government also allowed so-called single brand retailers to set up online stores before physical shops.

With escalating trade tensions damaging ties between the US and China, New Delhi’s latest investment rules could provide a boost to Apple, allowing it to grow sales in the country and possibly help it reduce its high dependency on China by building out an alternative supply chain in India.

The Cupertino, Calif-based device and services company will begin selling its iPhone, iPads and Apple Mac computers online in the coming months. It’s also firming up the Mumbai location of its first company-owned brick & mortar store in India -- likely to open next year -- the person said, asking not to be identified as the details are confidential. Selling online will be a big step forward for Apple in a country where counterfeit products abound in online platforms increasing buyers’ distrust.

Apple didn’t immediately respond to an email seeking comments.

Some of the phone maker’s older devices are assembled by Taiwanese contractor Wistron Corp. in a factory in Bangalore, while the world’s largest contract manufacturer, Foxconn Technology Group, tests assembly of Apple’s latest iPhone X in a factory near Chennai.

Apple has an insignificant share of the India’s booming smartphone market as its high prices and hefty import tariffs of as much as 20% put its products beyond the reach of average Indians. Sales of the iconic iPhones slid dramatically in 2018 and early 2019, forcing the phone maker to offer steep discounts on even its latest models.

India with 1.3 billion people is the last remaining large market for smartphone makers, and the new rules pave the way for Apple to control its own retailing and branding, both online and offline. Currently, it sells through franchisee stores and via online retail platforms such as Amazon India and Walmart-owned Flipkart Online Services Pvt.

India’s online retail market is surging and smartphones account for a chunk of e-commerce companies’ sales. Over a fifth of the phones sold in the country are through online channels and through direct sales, Apple could win greater customer loyalty and even out the playing field with Chinese brands such as Xiaomi and OnePlus, which have gained popularity in the market on aggressive online selling strategies.

Apple to launch three iPhones in 2019 with optic & haptic upgrades: Report

American technology giant Apple Inc is working on the next iteration of its iPhone smartphones, which are expected to be unveiled sometime in September this year. Speculated to be named iPhone 11, the upcoming series of smartphones could have at least three different models – according to technology news portal 9to5mac.

Codenamed the N104, D42 and D43, the upcoming iPhones are reported to be successor to the iPhone XR, iPhone XS and iPhone XS Max, respectively. The N104, which is expected to be the most affordable iPhone in the upcoming series, is said to feature an LCD screen of the same screen resolution as predecessor iPhone XR. The D42 and D43 would be successors to the premium iPhone XS and iPhone XS Max, respectively, and they are reported to boast OLED screens of the same resolution as their predecessors.

Though the design of smartphones in the iPhone 11 series is reported to be identical to their predecessors, they are touted to come with improved camera modules and enhanced hardware with new ‘Taptic Engine’ support. Speaking of camera, the D42 and D43 are expected to sport triple camera set-ups on the back. The N104, on the other hand, is rumoured to get dual cameras on its rear.

All three models in the iPhone 11 series were earlier rumoured to be getting the USB type-C port for charging, data transfer and audio output. However, the 9to5mac report claimed that the upcoming iPhone models would come with a lightning port. However, in terms of upgrades, all three iPhone 11 models are reported to be powered by A13 processor, details of which are still not known. The iPhone 11 series is also expected to come with a new Taptic Engine, which is expected to replace Apple’s 3D Touch feature, which has been there in all iPhones since the 6S.

Apple Music hits 60-million subscriber base, but still trails Spotify

Apple Inc on Thursday confirmed than the company's streaming music service has more than 60 million subscribers, trailing rival Spotify Technology SA's 100 million premium subscribers.

A company spokesman confirmed the figure that Eddy Cue, senior vice president of services for the iPhone maker, disclosed in remarks made to French publication Numerama in Paris. Apple executives had not disclosed a new number since May 2018, when the company said it had 50 million Apple Music subscribers.

The 60 million figure includes Apple customers who are on a free trial of Apple Music.

In April, Spotify reported it has 100 million "premium" subscribers. Spotify's definition of premium subscribers also includes those on free trials of its paid service so long as the user has entered a payment method such as a credit card.

When including listeners to its ad-supported service, Spotify has 217 million users. Apple and Spotify are locked in an antitrust dispute after Spotify filed a complaint with European regulators in March.

Apple gets ready for first retail store in India; picks sites in Mumbai

Apple Inc has finalized a short list of locations for its first retail store in India, according to people familiar with the plans, as the company redoubles its efforts in the world’s fastest-growing smartphone market.

The iPhone giant has zeroed in on several upscale sites in Mumbai, and plans to make a final decision in the next few weeks, said the people, asking not to be named because the discussions are private. The vetted spots are comparable to iconic Apple locations on Fifth Avenue in New York, Regent Street in London or the Champs-Elysees in Paris, they said. Apple has been prohibited from opening its own stores in the country because it doesn’t meet local sourcing requirements, but it’s shifting manufacturing into India and is in talks with the government about its retail expansion.

The Cupertino, Calif.-based company has struggled to establish itself in India where consumers have opted for less expensive Chinese brands such as Xiaomi and Vivo. But Chief Executive Officer Tim Cook has vowed to improve in the fast-growing market, especially as Apple loses ground in China. Manufacturing in India will also allow the company to sidestep 20 per cent tariffs on imported phones, making its devices more competitive.

“India is a very important market in the long term,” Cook said after the company’s earnings report last week. “It’s a challenging market in the short term, but we’re learning a lot. We plan on going in there with sort of all of our might.”

Apple doesn’t break out its revenue from India since it’s such a minor part of the business. In the most recent quarter, the company generated 44 per cent of revenue from the Americas and 18 per cent from greater China. India is lumped in with the rest of Asia-Pacific, which altogether account for about 6 per cent.

Apple has tried in recent years to gain ground as India eclipsed China as the fastest-growing smartphone market in the world. One Apple veteran took over as country chief at the end of 2017, overhauling its strategy and replacing top sales executives. But with little sign of progress, a new country chief was named in November.

Still, Apple continues to flounder in India. Research firm Canalys estimates the company’s shipments fell by more than 75 per cent in the first quarter of 2019, giving it only about 1 per cent of the country’s smartphone market.

Now Apple appears to be doing the difficult -- and expensive -- work of building a foundation for its business. Foxconn Technology Group, its most important manufacturing partner, is running quality tests for the iPhone Xr series in India and plans to begin mass production at a facility in the suburbs of Chennai. Older models are already assembled at a Wistron plant in Bangalore. The increase in local operations should expedite approval for a company-owned store when a new government takes over in India at the end of May or early June, said the people.

“Its own retail store might be just what Apple requires to reinforce its premium image,” said Rushabh Doshi, an analyst with Canalys. “A store just before the next launch will be the perfect timing for Apple to restart its Indian growth story.”

It’s clear Cook won’t give up against Chinese phonemakers that have come to lead the market. “We have made some adjustments in India and we’ve seen preliminarily some better results there,” he said last week during the earnings call.

Indeed, last month Apple ran front-page newspaper ads announcing sizable discounts on the latest iPhone Xr. The phonemaker, which rarely slashes price on its latest models, has offered a markdown of 17,000 rupees ($244) on its latest iPhone Xr, bringing the price down to 59,900 rupees. This week online retailer Paytm Mall announced cash paybacks on a variety of iPhone models.

“The price cuts are definitely a step in the right direction,” said Doshi. “Apple has a delicate balance to maintain: It needs to appeal to the cost-conscious Indian buyers, while ensuring that price drops do not dilute its premium image.”

Explained: Why is 5G so important, will Apple release a 5G phone this year?

Explained: Why is 5G so important, will Apple release a 5G phone this year?Apple Inc and Qualcomm Inc on Tuesday settled an acrimonious two-year legal dispute. Shortly afterward, Intel Corp said it will exit the smartphone modem chip business.The entire drama played out as the mobile phone industry prepares to shift to a technology called 5G.Echoing complaints from the U.S. Federal Trade Commission, Apple had alleged that Qualcomm used its patent licensing business to keep a monopoly on modem chips that connect devices like the iPhone to wireless data networks. Qualcomm insisted that Apple was using its valuable technology without proper payment, and Apple later dropped Qualcomm's chips in favor of those from Intel | Data Center Solutions, IoT, and PC Innovation the end, Apple and Qualcomm ceased all litigation, with Apple signing a six-year licensing deal with Qualcomm and also agreeing to buy Qualcomm chips. Hours later, Intel said it was getting out of the modem chip business.WHAT IS 5G?5G is a new network technology for wireless communications that could be up to 100 times faster than current 4G networks. The networks are coming on line in the United States, China, South Korea and other places this year, but probably will not be widespread until 2020. Modem chips connect devices like phones to these networks.WHO ARE THE PLAYERS IN 5G?Prior to Tuesday, five companies had disclosed 5G modem chips or plans to make them: Qualcomm, Intel, MediaTek Inc, Huawei Technologies Co Ltd and Samsung Electronics Co Ltd. Samsung and Huawei, however, only make chips for their own mobile phones.WHY DOES APPLE CARE ABOUT 5G?Some of Apple's rivals in the smartphone market - notably Samsung - plan to release 5G devices this year, which could put pressure on Apple to match the feature. Many carriers that are investing heavily to build 5G networks are also likely to put their marketing efforts behind 5G phones.WILL APPLE HAVE A 5G PHONE THIS YEAR?It would require an extraordinary effort from both companies. New modems take months of testing to ensure phones will work on carrier networks. Under traditional time lines, Apple would have needed to start testing a 5G iPhone last year, but its supplier Intel did not have a chip ready.WILL APPLE LOSE MARKET SHARE WITHOUT A 5G PHONE?Apple was slow to 4G too and did not pay a price. Samsung and others released 4G phones in 2011 as the networks were rolling out. Apple waited until 2012, when 4G networks become widely accessible. Many analysts believe Apple is making the same bet with 5G.WHY DOES APPLE NEED QUALCOMM'S CHIPS?Apple's only current modem supplier, Intel, said that it would not have a 5G chip ready until 2020, which could have pushed Apple's launch of a 5G iPhone into 2021 - a long enough delay that it could hurt sales. Qualcomm, on the other hand, is preparing to ship its second generation 5G chip and can meet Apple's needs with its current products.WILL APPLE EXCLUSIVELY USE QUALCOMM'S CHIPS?Not necessarily. While Apple and Qualcomm signed a supply agreement, Apple is working on developing its own modems and disclosed in court earlier this year that it has held talks with MediaTek and Samsung around modems.WHY DID INTEL SHARE RISE AFTER IT EXITED THE MODEM BUSINESS?Intel Chief Executive Bob Swan has told investors in the past that modem chips are not likely to fetch the same high margins as its CPU chips. Intel has plenty of other ways to make money from 5G, like selling CPUs to makers of base stations and so-called programmable chips to makers of networking gear.