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Apple Inc. (AAPL) Weighs Copycat Costs of Its Big Chip

Apple Inc. (NASADAQ:AAPL)

Apple Inc. brought forth a surge in processing speed with new A-series processors in its latest iPhone 6s and 6s Plus. Compared to last year’s iPhone 6 Plus, this year’s iPhone 6s and 6s Plus are around 50 percent and 60 percent faster in multi-core tasks and single-core tasks respectively.

Iphone

That’s clearly a boon for the firm, but the A9 chip may soon tart to cost a whole lot more than Apple’s original model intended. US courts say that Apple may have copied parts of the design, and it’s going to have to shell out to the patent holder.

The bad side of the iPhone 6s chip

University of Wisconsin recently won a lawsuit against Apple , billing $862mn for copyright infringement. This lawsuit was filed on the basis of a patent on a technology that was developed to make microchips power efficient.

A similar lawsuit was filed against Intel in 2008. The case was settled outside the court for an undisclosed sum.

As per court papers, the university offered Apple a license on the patent, which Apple ignored. With the licensing of the patent, Apple would have had to pay regular fee for the use of patent.

With Apple intending to infringe the right of the university, it might incur a heavier fine. The precise amount Apple may have to pay will be decided at a later stage in the court proceedings.

The lawsuit was the first in a series of actions against Apple. This case did not deal with the A9 chip used in the iPhone 6S and iPhone 6S Plus. A case dealing with those chips has been started, but has yet to conclude.

It’s not clear that a fine of that size will make Apple  change its mind about future infringements on patents. After all, a few extra millions in revenue to be paid back in lawsuits really do not make any change in the numbers.

Apple Inc. built a great chip

Packed with two cores, Apple’s A9 powered iPhone 6s and 6s Pluses are 90 percent faster than Samsung’s fastest Exynos 7 chip used in its premium-priced, limited availability Galaxy S6 Edge.

The new iPhone lineup perform over 133 percent faster in single core functions than Qualcomm Inc.’s quad core Snapdragon 805 found in Motorola Solutions Inc’s Nexus 6, despite that phone being clocked faster and bundled with power RAM storage. In fact, it is found that this new chip with two cores promises more power than eight cores of Samsung ones.

Even Nvidia Corp.’s 64-bit Tegra K1, found in HTC’s Nexus 9 tablet, comes with two cores, is not as fast as A-9 app processors. Moreover, it is big and gets hot easily, making it useful to be used in larger devices like tablets.

When it comes to speed and agility, Apple’s recent version of iPhones are much better than even best of the Android ones available in the market. As a result, Apple might make a dent into the share of the Android market, after all.

 

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