Qualcomm fights back against Apple

Qualcomm fights back against Apple
Just a few days ago, we told you that Apple is taking chip supplier Qualcomm to court. At issue is more than $1 billion in royalties that Apple allegedly says it is owed by the company. Apple claims that Qualcomm is upset because the tech titan spoke the truth to law enforcement agencies who are investigating the chip maker. The FTC is suing Qualcomm for anti-competitive behavior involving a contract it had with Apple to supply the company with baseband chips from 2011 to 2015.

In return for the exclusive rights to supply Apple with those modem chips, Qualcomm allegedly agreed to accept lower royalty payments from Apple. This year, both Qualcomm and Intel are supplying Apple with these baseband chips for the Apple iPhone 7 and Apple iPhone 7 Plus.

Qualcomm today issued a statement saying that Apple had mischaracterized the negotiations and agreements between the two firms. The chipmaker accused Apple of misrepresenting facts and withholding information in order to get Qualcomm in trouble with regulatory agencies like the FTC. The company says that it is looking forward to its day in court where it can use the "discovery" process to learn how Apple came up with the claim that it has not been paid royalties by Qualcomm.


source: SeekingAlpha

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19 Comments

1. fyah_king unregistered

Get them!!!

11. sgodsell

Posts: 7368; Member since: Mar 16, 2013

I hope Qualcomm stops selling them LTE modems. I also hope LG and Samsung don't sell Apple squat. Nah, that wouldn't be nice, however every vendor should over charge Apple, especially since iPhone users are use to being overcharged for everything anyway. Maybe iPhone users could pay $1000 for the base iPhone. Considering the current iPhone 7 has the lowest resolution display for a flagship priced device. So they are use to paying more and always getting less.

13. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

I don't think you comprehend what the iPhone is for the market of phone components. I'm sure Qualcomm and other companies can say "let's not sell to Apple", but do you think they can afford not to? I'm not talking about loosing a good business (which is, in its own, a great deal), but in punitive damages Apple's going to impose on them (or do you think they are none)?

16. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Any money they dont make from Apple, they can make up selling to other companies. Because here is the fact. If APple doesn';t have parts, they don't have a phone to sell. With no phoen to sell, buyers would need to buy an alternative product. That means other OEM would have significant increases in sales from all the OEM's especially Samsung and they would mor ethan make up the money. Just liek when you go and try to buy a product and it isnt available, don;t you choose an alternative? This is what happened to Sony when the Xbox first hit the stores. The Xbox received mediocre reviews, while I believe it was the PS2 or 3 at the time that as getting top reviews. But Sony couldn't keep enough product on the shelf, so people chose the only alternative which was the 360, which ended up outselling the Sony available option. End users started giving very positive reviews of the 360, and MS recorded it first profit from the Xbox after 5 years on the market. Also remember, Microsoft had to do a recall on the original Xbox 360 do to the RROD issue. Xbox hs been profitable ever since and has been outselling the PS ever since. Qualcomm does not need Apple. Smasung does not need Apple. Intel does not need Apple. Apple needs evberyone because Apple doesn't make their own s**t. It is all outsourced excapt for the design. Without OEM's helping PAple, the iPhone would die and eternal and horrifying death. Yes we all know they likely wont stop selling to Apple because after all they are in business to make money. But that doesn't mean they like what Apple does to them in return by stabbing them in the back. They dont have to sell anything to Apple and can easily band together against Apple. Here is another fact too. Only Samsung and Qualcomm with Smasung's help can produce the quanities needed for APple products. If just Samsung along decided it would no longer make components for the iPhone, Apple would be done. Smasung would gain nearly double the sales on the S, because the vast majority of buyers would buy a Samsung before any other brand. Apple knows this and the panzie Apple fanboys know this too. If I was Samsung, I woudlnt sell Apple nothing. They are not required too and Apple couldnt say nothing. Everything doesn't have to be about money, they just make it be so!

19. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Here's something you misunderstood: people need to want to change what they have with something else; with Apple gone (just for a while, because they can rebuild their supply chains in a jiffy), you might see people... simply not buying something else (remember that you're calling Apple users isheeps). I have a 5 years pc that I use everyday and I will be using the same pc until it dies on me (or I won't be able to find parts), because I don't need anything more out of a pc. I got an iPhone 6s, because my 5s lte modem only gets 50-70 Mbps; I got the 7, because it only costed me 50 euro the upgrade and I now have 200 Mbps; but all the things I do on my 7 or on my P9, I can very well be doing on my 5s (which is now a backup device). You do not understand a lot of Apple users: just like with Nokia, we didn't get those products for the name or the colors, we got them for what they give us back.

2. Busyboy

Posts: 731; Member since: Jan 07, 2015

Yeah, sorry. You're paying huge fines in China and South Korea and are being investigated by the FTC and EU. You don't have much credibility, Qualcomm.

8. zacsaturday

Posts: 262; Member since: May 09, 2014

No no, the EU investigates everything that's not EUropean (see what I did there, I was trying to remove the countries in Europe but not in the EU). Google (Tax/Monopoly), Apple (Tax), Amazon(Tax/Monopoly), Qualcomm (as just mentioned)(Tax/Monopoly), Starbucks, Facebook. They EVEN wanted (but didn't luckily) to ban Pokemon Go. Meanwhile, EUropean big brands like IKEA, Volkswagen, HSBC (UK - so for now) and Vodafone (UK - so for now) get away with anything short of murder.

10. SmartPhoneMobiles

Posts: 187; Member since: Oct 16, 2016

u mento HSBC is chinese - hong kong and by the way Volkswagen DIDN'T get away with anything they lost a lot !

17. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Only in the USA! Not anywhere else!

14. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

I live in EU; I don't agree with a lot of things that EC, but I support the investigation of the companies that were paying less than what they should have paid; if they did that by obeying EU laws, they should be ok, but if they paid less by breaking them (as Apple, Google or Oracle seem to have done), we have a problem.

3. SYSTEM_LORD

Posts: 1168; Member since: Oct 05, 2015

Let's see how this goes. Btw, don't these companies bicker like little children?

4. nedimko_wot

Posts: 115; Member since: Oct 01, 2016

round 2 READY!!! FIGHT!!!

18. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Scorpion = Samsung SubZero = Apple. SCORPION WINS!!!!!!!!!!!!!!! Goro = Qualcomm/Samsung SubZero = Apple... FIGHT!!!!!!!!!!!! My money is on Goro! Apple no longer has the cloak of protect of the US Gov't after not unlocking that iPhone. Karma has been hurting Apple and now they are goign to fry. I am betting Qualcomm will win. Justice and luck is in their favor. Apple will lose this case...!

5. CreeDiddy

Posts: 2206; Member since: Nov 04, 2011

Apple will most likely go exclusively with Intel and drop Qualcomm. Not that anyone these issues matter to the consumer. It doesn't effect the performance of an iPhone, iPad or any other device that uses a Qualcomm chip.

7. remixfa

Posts: 14605; Member since: Dec 19, 2008

intel doesnt have the free foundaries required to go full time with Apple. They just finally got away from Samsung as Qualcomm had to do some expansions.

6. NarutoKage14

Posts: 1324; Member since: Aug 31, 2016

So Apple asked Qualcomm for lower prices and Qualcomm have them the terms they had to agree to for those lower prices. Apple agreed to Qualcomm's terms to get lower prices. The contract has now expired and now Apple is saying that they overpaid Qualcomm. Basically Apple is saying that they don't think other companies deserve to be compensated for their work/tech. When you do business with Apple you should expect razor thin margins.

12. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

Yea if they can't make you go bankruptcy, they sue your ass. Typical pathetic Apple. I hope QC stop selling them modems....then it is bye bye....

9. SmartPhoneMobiles

Posts: 187; Member since: Oct 16, 2016

That's good that two usa companies hates each other.. at least they will stagnate.. both.. AAAAnnnd HUAWEIIII wiiiilll beeee KIIIIIIINGGG actually no ... It will beee smartphone IMPERATOR KIRIN - DA BEST

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Even though I don't like Qualcomm, because they outright oied about the SD820, if APple is lying, I hope QC squashes them like a bug. Then after you win, refuse to sell any product to Apple no matter how much money they offer. In fact if I was any parts supplier to Apple, I would refuse to do business with them and force them out of the market. Apple has been nothign more than a bully and a disease in this market. I am so tired of them.

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