On Wednesday, chipmaker Qualcomm filed suit against Apple, claiming Apple has failed to abide by the terms of a software license and said it may have used its unprecedented access to that code to help Qualcomm-rival Intel Corp.
The two companies are now engaged in a lawsuit over technology licensing fees that Qualcomm charges for patents. Apple has stated that Qualcomm is charging too much and has leveraged its strong market position in chips illegally. Qualcomm has countered that Apple, one of its largest customers, has lied to regulators in an unfair attempt to bully it into charging less.
Apple currently uses Qualcomm’s chips as modems without its devices to communicate with cellular networks. Apple has widened its supplier base to include Intel for some of the chips, beginning with the iPhone 7. The company has yet to respond to requests seeking comment.
Qualcomm has also alleged that Apple failed to protect access to the chipmaker’s software and has not allowed Qualcomm an audit to review Apple’s methods, an obligation Qualcomm said was included in its contract with Apple. Apple made an email request for proprietary information from Qualcomm and included an Intel engineer on the distribution list, according to the suit. It also alleges an Apple engineer working with a competitor asked a colleague to request information from Qualcomm on data download technology.
The suit itself surfaced only a few days after it was noted that Apple is designing iPhone and iPads for 2018 that don’t include components from Qualcomm, according to a source close to the story. Should Qualcomm lose Apple’s business, it could sacrifice about 7.5 percent of its revenue according to Raymond James and Associates. The product plans are in the early stages and may still change, said the person, who asked not to be identified because the matter is private. Apple made the decision amid a dispute over the company’s access to Qualcomm’s proprietary technology.
Stay tuned for additional details as they become available.
Via Bloomberg