Apple turns up heat in Qualcomm royalty spat - Mobile World Live

Apple turns up heat in Qualcomm royalty spat

28 APR 2017

Qualcomm said Apple is “improperly interfering” in its relationship with device manufacturers, after the iPhone maker said it would withhold payments to these manufacturers which they owe to Qualcomm as royalties.

Apple and Qualcomm recently kicked off a number of legal actions, with the consumer electronics maker complaining about the licensing regime of the US technology company. Qualcomm had already warned the dispute could affect its business.

A number of companies manufacture iPhones for Apple, and make payments to Qualcomm based on the value of these products.

“These licence agreements remain valid and enforceable. While Apple has acknowledged that payment is owed for the use of Qualcomm’s valuable intellectual property, it nevertheless continues to interfere with our contracts,” said Don Rosenberg, EVP and general counsel at Qualcomm.

Qualcomm updated guidance for its fiscal Q3 to exclude royalty revenue from Apple’s partners. It said while the companies may make some payment, “initial indications are that any payment would likely be insignificant”.

It revised its revenue guidance for the quarter to $4.8 billion to $5.6 billion, compared with prior guidance of $5.3 billion to $6.1 billion.

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