Qualcomm Strikes Back at Apple – Countersues It Over iPhone and iPad Royalties
The partnership between Apple and Qualcomm looked to have been going smoothly until the former slapped the leading chipset manufacturer with a $1 billion lawsuit stating that Qualcomm charged royalties on tech that were not related to the company in any manner. In response to that, the chipset maker has struck back with a counter suit, stating that Apple has breached its contract with the firm.
Among Several Accusations, Qualcomm States That Apple Misinterpreted the Latter’s Modem’s Performance in the iPhone 7 Family
In addition to breaching the contract with Qualcomm, the SoC manufacturer states in its latest post that the company also interfered with long-standing agreements with Qualcomm licensees that manufacture iPhones and iPads for Apple. It has also been detailed that Apple chose not to utilize the full performance capabilities of Qualcomm’s LTE chips present in its iPhone 7 family.
Remember, Apple attempts to use more than one company’s components in order to seal a better price for the entire batch. Since more iPhones are sold in a given year than any of the company’s competitors’ mobile devices, its partners have no choice but to comply.
Don Rosenberg, Executive Vice President has recognized the role of Apple in changing the tech landscape but has also stated unfair licensing terms from Qualcomm, as he states the following:
“Over the last ten years, Apple has played a significant role in bringing the benefits of mobile technology to consumers with its popular products and services. But Apple could not have built the incredible iPhone franchise that has made it the most profitable company in the world, capturing over 90 percent of smartphone profits, without relying upon Qualcomm’s fundamental cellular technologies. Now, after a decade of historic growth, Apple refuses to acknowledge the well established and continuing value of those technologies. It has launched a global attack on Qualcomm and is attempting to use its enormous market power to coerce unfair and unreasonable license terms from Qualcomm. We intend to vigorously defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry.”
The company will be seeking damages from Apple and will also be looking to prevent the California-based giant from interfering with Qualcomm’s agreements with the companies that manufacture iPhones and iPads for Apple in the future.
As a closing note, whatever the disagreements both companies had, Qualcomm has also displayed that it does not play the game fairly when it comes to possessing a huge market share in the mobile chipset market. Ever wondered why Samsung cannot supply its SoCs to other manufacturers? It is because Qualcomm has prevented the Korean tech giant from doing so in the form of a standard essential patent license.
What outcome do you think is going to take place between the two tech giants? Let us know your thoughts down in the comments.