May 21, 2017

Everything You Need to Know About the Apple vs. Qualcomm Legal Battle

Are you an avid follower of the tech scene? If so, you must have heard of the legal battle between two giants in the mobile industry. The relationship between Apple Inc. and Qualcomm went sour early this year after Apple claimed that Qualcomm is demanding for an unexplainably hefty royalties. If you’re clueless and curious to know more about this ensuing drama, we’re here to provide a recap.

Photo courtesy of VR-Zone

What’s going on?

Qualcomm welcomed the new year with a seething US lawsuit from its longtime partner, Apple. According to the complainant, the leading provider of mobile processors keeps “charging royalties for technologies they have nothing to do with”. The 1 billion USD lawsuit immediately affected stock market shares once news started to spread. A day after snippets of the issue reached the press, Qualcomm’s shares fell 2%.

A couple of days after the highly reported fallout, Apple decided to take their war on foreign shores by filing another case against Qualcomm in China, which costs a hefty 1 billion yuan (145 million USD).

Photo courtesy of Mobilescout


In February, Intel—a direct competitor of Qualcomm and one of Apple’s partners, took advantage of the situation by releasing a modem that could rival the current Snapdragon processors used in iPhone models.

March wasn’t any better for Qualcomm as Apple filed another lawsuit, this time in the UK. Come April, Apple has officially ceased to give Qualcomm its royalty shares—directly affecting the latter’s first quarter revenue with a reported loss of 500 million USD.

Photo courtesy of University Herald

Qualcomm finally retaliated with a lawsuit of their own after taking offense when Apple claimed that Intel’s processors were far more superior than theirs in the iPhone 7. The case cited that the smartphone giant downplayed the Snapdragon’s capabilities on purpose.

Photo courtesy of ZDNet


The latest scoop

On the first week of May, Qualcomm announced that they plan to prevent the importation of iPhones into the US—including the upcoming iPhone 8—by filing a request to the International Trade Commission. If granted, this will be a huge blow to Apple since the US market makes up 40% of the company’s sales.

So far, there’s seems to be no signs of slowing down from both sides. Both Qualcomm and Apple has already suffered from losses whichever way this legal battle ends. Let’s just hope both companies can sort it out anytime soon.