Deus ex Machina: iPhone’s 2.5G Technology Survives Wrath of God

If you’ve been following the ITC vs Qualcomm case, you will summarize that phones that come with Qualcomm 3G technology are going to be banned from entering US soil.

Qualcomm Inc. chips will be banned from new mobile-phone models sold in the U.S., a trade agency ruled, after finding that the products infringe a patent owned by smaller rival Broadcom Corp.

Semiconductors made by Qualcomm, the world’s second-biggest manufacturer of chips for mobile-phones, can still be sold in handset models already on the market, the U.S. International Trade Commission said today. The decision must be reviewed by President George W. Bush and U.S. Trade Representative Susan Schwab. Qualcomm and Verizon Wireless said they will seek to overturn the ban. [source]

Several handset manufacturers including LG, Samsung, Motorola and Kyocera have joined the bandwagon to protest this ruling, which could potentially cripple the mobile phone market in the USA. All 3G phones being sold in the USA can still be bought, but new phone imports made with Qualcomm chipsets will be banned from entering.

This leaves the lowly 2.5G iPhone free to enter the market after such mobile phone Armaggedon occurs. 3G competitors crippled, powerful smartphone outsmarted, the iPhone, that displayed no intent to enter the 3G market will have an added bonus when it comes out - there will be far too little choices for mobile phones in the next few months.

While a small portion of AT&T’s current and upcoming phones use the offending Qualcomm chips, the 2.5G-only iPhone is exempt by using alternate components. This guarantees a smooth launch for the Apple-made device but should also give both Apple and AT&T an unexpected edge in the market, iSuppli analyst Jagdish Rebello has told AppleInsider.

“In the near term the benefits to [the] Apple iPhone will be positive,” he says. “The ban will force competing carriers to AT&T to rethink plans to introduce enhanced 3G models to compete with the iPhone. If these new models have Qualcomm chipsets, then the carriers will not be able to offer them in the US under the current ban.” [source]