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Qualcomm details Apple modem issue

by on15 August 2017

Tells the watchdog

Chipmaker Qualcomm showed further details about the impact of the fruity cargo-cult Apple refusing to pay up on its licences and its modem competition with Intel.

Responding to questions from the US Securities and Exchange Commission, it said revenue in its CDMA technology business from modem sales for iPhones may continue to decline, in part depending on the extent of Apple's use of Intel modems and the mix of the various versions that are sold.

Qualcomm said that Apple's dual sourcing does not impact the licensing revenue since licensing revenue from Apple products were not dependent upon whether such products include Qualcomm's chipsets.

Qualcomm said it would give further details on the impact of Apple's dual-sourcing model on product revenue, licensing revenue and profitability in its upcoming quarterly filing.

Apple is using Intel's broadband modem chips in the iPhone 7, and Qualcomm are locked in a sprawling legal battle, with the iPad maker objecting to Qualcomm's business model of requiring customers to sign patent license agreements before buying chips. For that Apple was apparently happy to sign up for a less useful modem from Intel and throttle users who had the better and faster Qualcomm chip.

Apple and Samsung accounted for 40 percent of Qualcomm's revenue in fiscal 2016.

The US International Trade Commission agreed in August to look into a patent infringement complaint filed against Apple by Qualcomm in July, where it sought a bar on Apple selling some iPhones and iPads in the United States.

Last modified on 15 August 2017
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