Qualcomm’s Profit Tanks 40pc
The ongoing dispute between Qualcomm and Apple appears to be taking its toll on the chipmaker’s financials.
Qualcomm’s third quarter revenue was down 11 percent over the previous year at US$5.37 billion (A$6.77 billion), but beat analyst estimates of $5.26 billion.
The biggest hit, however, was in Qualcomm’s net income, down 40 percent at $866 million.
The war with Apple began in January when the iPhone maker sued Qualcomm, alleging the chipmaker “has unfairly insisted on charging royalties for technologies they have nothing to do with.”
In a countersuit, Qualcomm denied the charges and brought a number of its own accusations including that four of Apple’s manufacturers – Foxconn, Compal, Wistron and Pegatron – had banded together to accuse it of violating United States antitrust law.
Qualcomm CEO Steve Mollenkopf said: “We believe that we hold the high ground with regard to the dispute with Apple, and we have initiated new actions to protect the well-established value of our technologies.”