Qualcomm has substantially cut both revenue and profit forecasts as it revealed that Apple has ceased all royalty payments to the company pending the outcome of lawsuits between the two companies …
Qualcomm’s general counsel Don Rosenberg described the move as a ‘global attack’ by Apple, seemingly referring to the fact that Apple suppliers are already withholding royalty payments
Reuters reports that Qualcomm’s stock price fell on the news.
Apple originally sued Qualcomm, claiming that it had been charging royalty fees for technology it didn’t own, and that it had been over-charging for tech that it did, as Tim Cook recently explained.
It has since expanded its legal action against the company, with additional lawsuits in both China and the UK.
Although the impact of Qualcomm losing the cases would be substantial, it can at least take comfort from the fact that it is not one of the six companies that depend on Apple for half to three-quarters of their sales.
Photo: Reuters/Mike Blake
