Is Apple About To Ditch Qualcomm Chips?

Qualcomm filed suit against Apple on Wednesday in a California state court, alleging the iPhone maker breached a software license contract and used proprietary code with competitor Intel.

Qualcomm CEO Steve Mollenkopf suggested that the company would likely settle with Apple out of court and it could be a situation "where a solution just appears".

In Qualcomm's earnings report yesterday, the chipmaker revealed that full-year QTL segment sales had fallen 16% due to Apple and another unnamed licensee withholding royalty payments.

Qualcomm Inc.is once again upping the ante in its legal dispute with Apple Inc. over their supply agreements.

Apple in the past used only Qualcomm modem chips for iPhones, but started also procuring the chips from Intel for its iPhone 7 and 7 Plus models previous year. It widened its suppliers to include Intel for some versions of the iPhone beginning with the 7 model.

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According to the report, the lawsuit states that Apple emailed Qualcomm asking for product information with an Intel engineer copied on the message.

In another instance, Qualcomm alleged that an Apple engineer working on a competing chip asked an Apple engineer working with Qualcomm to get technical information from Qualcomm.

If Qualcomm loses that business, it would cut the company's revenue by about 7.5 percent, Raymond James & Associates estimates.

In another U.S. case, Qualcomm alleges that it has six patents developed in the past four years that improve battery life in mobile devices and that 'Apple uses these technologies in its devices but is not paying for them'. Still, these results are a reflection of the toll that the legal battle between Qualcomm and Apple is taking.

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