Published: Fri, January 27, 2017
Hi-Tech | By Merle Christensen

Apple Continue To Fight With Qualcomm With 2 New Lawsuits

Apple Continue To Fight With Qualcomm With 2 New Lawsuits

McKesson Corporation (NYSE:MCK) reported a profit for third quarter that decreased from a year ago.

Investors still seem to have some doubts-Qualcomm's stock has lost 16% since Apple filed its case last Friday.

On January 17, 2017, it was reported that USA antitrust officials were poised to sue QUALCOMM, Inc for allegedly using unfair practices in the way it licenses its technology. On Wednesday Apple took its lawsuit to China filing similar claims in Beijing's Intellectual Property Court.

Apple's USA lawsuit, filed on Friday in a United States district court in California, accuses Qualcomm of using its monopoly position as a manufacturer of baseband chips, a critical component in mobile phones, to seek "onerous, unreasonable and costly" terms for patents. In China, Qualcomm also faces stiff competition from Asian chip suppliers like MediaTek, Samsung and Spreadtrum.

Apple feels Qualcomm has been abusing its market power for years. Regulators in that country have fined the company approximately $854 million for allegedly forcing customers to pay extra for its patent licenses in order to maintain access to the company's chipsets.

The company's licensing business head Derek Aberle also chimed in, saying that Apple's case has no merit.

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Apple recently filed a $1 billion lawsuit against Qualcomm over the terms for its technology. Revenue of $6 billion fell slightly short of a Zack's survey consensus of $6.12 billion, but was up a hair from $5.8 billion the year prior.

Qualcomm CEO Steve Mollenkopf said today on the company's call accompanying its first-quarter earnings report that Qualcomm would continue to work with Apple as a supplier despite a major legal battle happening between the two companies.

QUALCOMM Incorporated (NASDAQ:QCOM) [Trend Analysis] tries to capture market sentiments, shares knocked up 0.22% to $55.00.

The complaints are the second legal challenge Apple has lobbed at Qualcomm in as many weeks.

Analysts on average were expecting a profit of $1.20 per share and revenue of $5.90 billion so they are slightly disappointed.

The motive behind the lawsuit is similar to the motive behind the USA lawsuit - Apple is basically accusing Qualcomm of not delivering on patent-related promises. Apple also said Qualcomm sought to punish it for cooperating in a South Korean investigation into Qualcomm's licensing practices by withholding a $1 billion rebate. "Apple has intentionally mischaracterized our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed. and shared with all mobile device makers through our licensing program". When the U.S. FTC is finished with Qualcomm it'll be your third strike Mr. Mollenkopf and so I'm sure that Qualcomm's board will finally wake up and bid you farewell for making them look like idiots around the globe.

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