What HTC's Thunderbolt means for the iPhone 5

With the next generation iPhone 5 on it's way from Apple, enthusiasts and analysts are looking to glean any clues as to what will be packed into the anticipated phone.
With regards to a few important aspects, clues have come from a surprising source -- Apple rival HTC with

its Thunderbolt 4G phone.
With its fast 4G advantage, the phone sports the highest component costs of any other smartphone, and even rivals some tablets.
But it's that same 4G technology that allows industry watchers to understand some of the challenges that Apple is facing as it builds out its iPhone 5.
The 4G Long Term Evolution (LTE) wireless chips required for the faster speeds in the Thunderbolt cost an extra $39.75, according to industry researcher IHS.
This presents a problem for Apple, which observers believe is mulling adding the capability to its forthcoming iPhone 5.
There are some options.
Apple could forgo 4G technology all together. Indeed some analysts have predicted just as much, given the current chips are relatively new technology that haven't been 100 percent proven.
The company has already dropped hints, saying at a Verizon press conference in January that it will be conservative with the implementation of LTE, primarily because of battery and other concerns that didn't meet Apple's demands.
On the other hand, there are already three models of LTE phones on the market from competitors Samsung, and LG, as well as HTC's Thunderbolt.
To combat, Apple would certainly need a 4G offering, but would need to make some sacrifices given the size and cost of the chip.
"First, the iPhone's minuscule printed circuit board (PCB) will have to grow in size in order to support the first-generation LTE baseband processor as well as all the supporting chipset," explained firms senior analyst, Wayne Lam.
"Second, the next iPhone's BOM value certainly will increase substantially compared to the iPhone 4 if LTE is implemented in the same manner as in the HTC Thunderbolt."
The current iPhone 4 costs $171.35 to make, meaning the addition would run costs up to roughly $211 per unit, cutting down on Apple's margins, which could be passed on to the consumer.
But seeing that Apple executives have publically complained about the poor designs of current LTE chips, Apple could opt to use someone else entirely.
Enter the Qualcomm's "SnapDragon MSM8960." The chip is the newer version to the 4G chip in the Thunderbolt, and features a number of advantages over standard 4G implementations.
It combines LTE, the "EVDO" standard for existing CDMA networks, and the GSM standard used at AT&T, in one chip, allowing Apple to sell one iPhone 5 that can run on multiple networks.
Currently it sells one for AT&T and one for Verizon.
Given the iPhone 5 is expected to ship a lot more units than HTC's Thunderbolt, Apple has the advantage of pushing down prices even more.
"I would imagine the caveat would have to be added that strict cost of components may vary between Apple and HTC, given Apple's purchasing power in the semiconductor market," Lam says.
The iPhone 5 is expected in Q4 this year.

Apple now selling unlocked GSM iPhone 4 in US, starting at $649

Apple updated its online store on Tuesday to begin offering unlocked models of the iPhone 4, starting at $649. Both the white and black versions of Apple's bestselling smartphone are available, with the 16GB and 32GB versions selling for $649 and $749, respectively, in the U.S. Apple online store. The device is not eligible for international shipping. Currently, the black versions of the unlocked iPhone 4 are estimated to ship within 1-3 business days, while white versions are listed as shipping within 3-5 days.

"The unlocked iPhone 4 requires an active micro-SIM card that you obtain from a supported GSM wireless carrier," Apple notes on the product description page. As with unlocked iPhones sold internationally, the device will work on all Apple-supported GSM networks around the world. Apple also takes care to note that an iPad 3G micro-SIM card will not work in the unlocked iPhone 4. In the U.S., customers with unlocked GSM iPhones can choose from AT&T and T-Mobile, though data transmission on the T-Mobile network will occur over the slower EDGE protocol because the carrier's 3G network is incompatible with the iPhone. Over the weekend, reports emerged that Apple would begin sales of the unlocked iPhone 4 in the U.S., though the device went on sale a day earlier than sources had suggested. On Monday, various outlets noted that unlocked iPhones had been shipped to Apple Stores with a price tag of $649 and $749. The release of an unlocked iPhone 4 comes as a blow to AT&T, which held an exclusive on the iPhone in the U.S. for more than three years, up until the release of the iPhone 4 on the Verizon network in February. The iPhone 4 has quickly become Apple's bestselling iPhone. iPhone sales grew 113 percent year over year in the second quarter of fiscal 2011, reaching a record high of 18.65 million units. According to Apple COO Tim Cook, iPhone sales were "off the charts in the U.S" with 155 percent year over year growth, driven in part by the addition of the Verizon iPhone 4.

Apple agrees to pay Nokia patent licensing fees

Apple has agreed to license wireless phone patents owned by Nokia that sparked a long-running legal dispute between the two companies. The deal will settle all patent litigation between Nokia and Apple, and the two will withdraw their respective complaints with the U.S. International Trade Commission. In addition, Apple will pay Nokia an undisclosed one-time fee and on-going royalties, Nokia said today. "We are very pleased to have Apple join the growing number of Nokia licensees," Stephen Elop, president and chief

executive officer of Nokia, said in a statement. "This settlement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market." Apple representatives did not immediately respond to a request for comment. The legal skirmishing began in October 2009 when Nokia sued Apple in over 10 wireless handset patents the Finnish phone maker said it owned. The 10 patents, which Apple reportedly refused to license, related to making phones able to run on GSM, 3G, and Wi-Fi networks. They include patents on wireless data, speech coding, security, and encryption, according to Nokia. Apple filed a countersuit in December 2009, charging Nokia with infringing 13 Apple patents related to the iPhone. In its suit, Apple denied Nokia's claims of copyright violations and said the licenses Nokia insists Apple pay were "unfair, unreasonable, and discriminatory" and "non-essential" to the iPhone. The dispute escalated later that month when Nokia lodged a complaint with the U.S. International Trade Commission, accusing Apple of infringing seven Nokia patents "in virtually all of its mobile phones, portable music players, and computers." A Delaware court put the lawsuits on hold in March 2010, pending the U.S. International Trade Commission's decisions on the matter. Apple then took its fight to the U.K. in September 2010, accusing Nokia of infringing on 9 patents it owned. However, a judge with the U.S. International Trade Commission ruled in March that Apple was not in violation of five of Nokia's patents.