Qualcomm’s profit dropped by 90% as the legal battle with Apple continues
Qualcomm, one of the world’s largest chipmaker, sees a 90% drop in profit in Q3 2017. The revenue of the company is also decreased by 4.5%.
The sales of Qualcomm are not affected by the large margin so the huge drop in the profit is because of the ongoing legal battle with Apple and a $778 million fine from Taiwanese regulators. Qualcomm is facing a legal battle with Apple related to patent royalties on iPhones and iPads. These legal difficulties caused the drop of Apple’s profits to $168 million from $1.6 billion last year.
According to Qualcomm the profits this quarter were “negatively impacted as a result of actions taken by Apple and its contract manufactures.” However, Qualcomm’s stocks are still steady but according to a Wall Street Journal report, Qualcomm’s shares might drop as Apple is planning to use Intel and MediaTek chipsets for their iPhone and iPad.
Qualcomm has been a regular supplier of chips for iPhone and iPad, but as Apple is considering not to use Qualcomm chips anymore, it will be a huge loss for Qualcomm. However, Apple might change its decision by next year.
Here’s what Apple’s CEO Tim Cook said regarding the legal battle,
“The reason that we’re pursuing this is that Qualcomm‘s trying to charge Apple a percentage of the total iPhone value, and they do some really great work around standards-essential patents, but it’s one small part of what an iPhone is.”
Stay tuned to know more about the Apple and Qualcomm.