Is Apple About To Ditch Qualcomm Chips?

Adjust Comment Print

Qualcomm's fight with Apple has taken another turn, as the company has filed yet another lawsuit.

Qualcomm said in a lawsuit filed in California state court in San Diego that Apple used its leverage to demand unprecedented access to the chipmaker's highly confidential software.

In January, Apple sued Qualcomm for almost $1 billion for charging a hefty price for royalties on technologies that Apple said the chipmaker should not be associated with.

According to a new report from The Wall Street Journal, Apple is already busy designing iPhones and iPads without Qualcomm components. That same month, Apple's contract manufacturers joined its countersuit against Qualcomm saying the lawsuit against them is "yet another chapter of Qualcomm's anticompetitive scheme to dominate modem chip markets, extract supracompetitive royalties, and break its commitments to license its cellular technology on fair, reasonable and non-discriminatory terms".


Qualcomm detailed another incident that allegedly involved an Apple engineer working with a competing broadband model, presumably one from Intel. It's hard not to see the suit as a last-ditch attempt by Qualcomm to recoup potential future losses if Apple decides to use other competitor's chipsets in upcoming iOS devices.

As things now stand, Apple utilizes chips from Qualcomm and Intel, so suitable terms must be agreed before they can continue with their mutually beneficial collaboration.

Qualcomm also put the negative results down to another dispute with a licensee, who "underpaid royalties due in Q2 of fiscal 2017 and did not report or pay royalties due in Q3 and Q4".

However, Apple has now cut off those payments, costing Qualcomm an estimated $2 billion a year in revenue.

Comments