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From the article: "Apple contends Qualcomm is unfairly charging too much and illegally taking advantage of its market position in chips. To heighten pressure o
by cmiles74 9y ago
From the article:
"Apple contends Qualcomm is unfairly charging too much and illegally taking advantage of its market position in chips. To heighten pressure on Qualcomm, Apple has stopped paying the licensing fees and is planning to design devices that exclude Qualcomm’s chips, a person familiar with the situation has said."
- tooltalk 9y agoQualcomm's problem is with their patents licensing respect to competing OEM's, not necessarily with chips sales, which is really a side business, IMO. One regulator, KFTC, has found that Qualcomm's "no license, no chip" is a no-no, but why would Qualcomm want to sell chips to customers who have no desire to pay for licenses? Apple has to pay Qualcomm license fee for their patents either way -- whether Apple buys chips from Qualcomm, Intel, or otherwise. Apple is already receiving significant saving -- their royalty is based on the manufacturing cost that Foxconn charges Apple -- or about 1/3 of the retail price. Some of Qualcomm's licensing practices are quite troubling -- no license to competitors, for instance -- but, with respect to Apple's lawsuits, I don't think Qualcomm will have to change their per-device royalty basis.