Apple stops paying iPhone royalties to Qualcomm


Apple is largest smartphones maker in the world and big companies always suing each-other. In January this year apple sued to Qualcomm for charging royalties for technologies they have nothing to do with.

“Without an agreed-upon rate to determine how much is owed, we have suspended payments until the correct amount can be determined by the court,” Apple Spoksman Said

Apple said it had decided to withhold royalty payments to its contract manufacturers until the dispute is resolved in court. As a result, Qualcomm has slashed its current-quarter profit and revenue forecasts. The company has lowered its revenue guidance to a range of $4.8 billion to $5.6 billion for the fiscal third quarter from $5.3 billion to $6.1 billion.


Qualcomm is largest chip maker of the smartphone industry, Apple and Samsung are major clients for their products and both accounted almost 40 percent of Qualcomm’s revenue in its latest fiscal year. Qualcomm said, it will not receive royalties furthermore from Apple inc. which causing loss in its current revenue. The company lowered its forecast for current-quarter adjusted profit to 75-85 cents per share, from 90 cents-$1.15 per share.

“Apple has now unilaterally declared the contract terms unacceptable; the same terms that have applied to iPhones and cellular-enabled iPads for a decade, (Apple’s) contract manufacturers may make some form of partial payment, but initial indications are that any payment would likely be insignificant,”


Said, Don Rosenberg (Qualcomm’s general counsel), in a open statment.

Via | Source


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