Qualcomm's $2 billion bet on Trump goes bad

llustration: Rebecca Zisser/Axios

Qualcomm yesterday disclosed that it will pay $2 billion to Dutch chipmaker NXP, after pulling the plug on a $44 billion takeover attempt.

The big picture: Qualcomm, which declined comment, seems to have made a $2 billion bet in April that trade tensions between the U.S. and China would settle down by mid-July. Perhaps it thought it really understood President Trump, since he had just saved it from a hostile takeover by Broadcom. It was wrong.

Qualcomm doesn't expect Apple to use its modem chips in next iPhone

Qualcomm sign at a trade show
Photo: Andrej Sokolow/picture alliance via Getty Images

Qualcomm acknowledged Wednesday that it expects Apple will go exclusively with rival chipmakers to supply the modems on the next iPhone. The move comes as the two companies remained locked in a bitter licensing dispute.

Why it matters: Although Apple designs its own processors, it relies on others for modem chips and had been a big Qualcomm customer until recently. Apple has used a mix of Intel and Qualcomm modems in recent iPhones. Qualcomm will still supply some modem chips for older iPhone models.