Qualcomm Profit Slides as Royalty Dispute Continues

Laverne Mann
November 2, 2017

Qualcomm told Reuters it is providing fully tested chips to Apple for iPhones.

Qualcomm today reported its fourth quarter earnings for 2017 and the numbers aren't pretty.

According to commentators, Apple moving over to Qualcomm rival products would be a big change. This is due to the fact that the partners initially refused to test their chips in the iPad, and then ceased to supply the required software.

The iPhone 8 and 8 Plus, which were only recently released, also used both Intel and Qualcomm chips.

The Apple-Qualcomm stand-off is centred over patent licensing with the iPhone maker accusing the chip designer of abusing its market dominance with high royalties.

The manufacturer of microchips has been fined by the South Korean authorities because of the violation of the Antimonopoly law. "We are committed to supporting Apple's new devices consistent with our support of all others in the industry", said the company.

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The report claims that the final straw for Apple was when Qualcomm allegedly chose to withhold the software needed to test Qualcomm's own chips on Apple's prototype devices. The technology giant is considering using Intel or MediaTek chips for the upcoming devices.

The Apple dispute has put significant pressure on Qualcomm Technology Licensing (QTL), Qualcomm's licensing division, which accounts for a significant portion of Qualcomm's earnings.

Responding to that, Qualcomm tried an import ban on iPhones in the U.S. and attempted to block iPhone sales and manufacturing in China. "Qualcomm's wireless solutions remain the gold standard for premium tier smartphones".

It's already attempted to in the past, as the iPhone 7 and iPhone 7 Plus carried both Intel and Qualcomm chips, as did this year's iPhone 8 and iPhone 8 Plus.

Apple reportedly has until June to make its decision, although that's a bit late in the game, considering that the Cupertino company usually announces its new iPhones in September. As a holder of patents essential to implementing cellular standards, Qualcomm collects royalties on almost every smartphone sold world-wide, regardless of whether they include the company's chips.

Other reports by MaliBehiribAe

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