“Apple Inc. is piling onto lawsuits that attack the way Qualcomm Inc. licenses technology for mobile phones in a widespread effort to rake back profits in a slowing market,” Ian King and Alex Webb report for Bloomberg.
“The latest suit by Apple, filed Friday, alleges that Qualcomm has unfairly used the power of its patents, which cover the fundamentals of phone systems, and its chip business to prop up its dominant position in the industry. Apple’s legal actions follow regulatory investigations and fines on three continents, including a lawsuit announced last week by the U.S. Federal Trade Commission,” King and Webb reports. “‘It feels like another coordinated attack on Qualcomm,’ said Mike Walkley, an analyst at Canaccord Genuity. The mobile phone business is “a mature industry, they’ve got to get their margins higher.'”
“Apple generally uses two or more suppliers for any given component, creating competition and forcing down prices. But Apple had relied exclusively on Qualcomm’s base-band chips — parts that connect the phone to networks — until the introduction of the iPhone 7 last year, when it switched some versions to modems from Intel Corp.,” King and Webb reports. “Ultimately a straight-up legal fight will take years to play out, according to Canaccord’s Walkley. Apple would much more likely want to settle the case in return for lower rates.”
Read more in the full article here.
MacDailyNews Take: Or Apple’s just sick of getting gouged by Qualcomm.
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FTC alleges Qualcomm forced Apple into iPhone LTE chip deals – January 18, 2017
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Tests show iPhone 7 Plus models with Qualcomm modem perform significantly better than those with Intel modem – October 20, 2016