Oh it’s On Now! Apple Stops Qualcomm Payments

Category: Science Written by Jason Martin 402 3
A fortnight ago, we discussed at length the many disputes that currently confront Apple and Qualcomm . To summarize, Apple criticizes Qualcomm for owing them $1 billion and engaging in anti-competitive business practices. For its part, Qualcomm accuses Apple of unilaterally breaking an exclusive agreement on the use of its modems, and of having been up to limit their bit rates to limit possible comparisons with the modems signed Intel used by some IPhone 7.

While Apple has joined the US justice system to support its allegations, Qualcomm has used its teams of lawyers to bulkly refute the accusations and counter-attack by arguing that everything Apple is trying to do, Is to depreciate the value of Qualcomm patents and properties in order to pay for its cheaper operating licenses.

 

apple qualcomm stops payments
apple qualcomm stops payments

 

Qualcomm forced to revise its forecasts down

It is within this tense framework that the American justice will have to disentangle these different cases, whereas a new rebound has just occurred today: Apple has indicated that until the justice has rendered its verdict, Would not pay any royalties to Qualcomm – his exact statement being: ” Without a precise rate, we suspend our payments until the exact amount can be determined by the court .” Difficult to be clearer. It should be noted that technically, Apple does not directly pay money to Qualcomm, but intermediaries who make the iPhone and iPad and who pay Qualcomm. But of course, it comes down to the same: if Apple does not pay these sums, They will be unable to pay in turn the SoC manufacturer and modems.

 

“We’ve been trying to reach a licensing agreement with Qualcomm for more than five years but they have refused to negotiate fair terms. Without an agreed-upon rate to determine how much is owed, we have suspended payments until the correct amount can be determined by the court,” Apple said in a statement to El Reg.

 

“As we’ve said before, Qualcomm’s demands are unreasonable and they have been charging higher rates based on our innovation, not their own.”

Qualcomm remains on his line of defense. Don Rosenberg, General Counselor, said in return: ” Apple has decided on its side that the terms of the contract were now unacceptable, while these same terms apply without problem to the iPhone and iPad cellphones for many years .” As a result, Qualcomm had to lower its revenue forecast for the current quarter from an estimated range of $ 5.3-6.1 billion to $ 4.8-5.6 billion.

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3 thoughts on “Oh it’s On Now! Apple Stops Qualcomm Payments

  1. ant

    So apple refuses to pay taxes and is now with holding payment it owes to Qualcomm… How the hell are they getting away with this?

  2. Alex

    The government really need to stop trying to dictate what is and is not allowed in business.

    Qualcomm created the technology and if they want to charge a high price for it then that should be their decision

  3. Clifton K Morris

    This is very interesting positioning because in the end, Apple would prefer that Verizon and Sprint’s network be 100% LTE; and not using Qualcomm CDMA technology. So what this means is Verizon and Sprint customers may not have iPhone as an option.

    Still, it’s very odd and strange because if I recall, former Sprint CEO, Dan Hesse, was required by Apple to pay $1,000,000,000 to modify iPhone design to work on Sprint’s network. If I’m not mistaken, Verizon also had to negotiate a similar deal.

    The thing about Apple is that each time someone pays a substantial amount of money, Apple is often required to take up the task to find a way to generate that revenue when the contract expires or need to be renegotiated. Failure to find a way to replace that revenue would result in Apple needing to report a loss in revenue to Wallstreet.

    It’s quite possible that this may also be a contributing reason why Apple decided to sell a $160 pair of wireless headphones (likely very profitable; with high margins) with the iPhone 7 model instead of including a pair that have wires.

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