Chipmaker Qualcomm Inc on Monday disclosed further details about the impact of an ongoing dispute with Apple Inc, responding to questions from the US Securities and Exchange Commission. Qualcomm, the largest maker of chips used in smartphones, said revenue in its CDMA technology business from modem sales for iPhones may continue to decline, in part depending on the extent of Apple’s utilization of rivals’ modems and the mix of the various versions that are sold.
Apple’s dual sourcing does not impact the licensing revenue since licensing revenue from Apple products are not dependent upon whether such products include Qualcomm’s chipsets, the company said in a regulatory filing. Qualcomm said it would give further details on the impact of Apple’s dual-sourcing model on product revenue, licensing revenue and profitability in its upcoming quarterly filing.
Apple, which is using Intel Corp’s broadband modem chips in the iPhone 7, and Qualcomm are locked in a sprawling legal battle, with the iPad maker objecting to Qualcomm’s business model of requiring customers to sign patent license agreements before buying chips. Apple and Samsung Electronics Co Ltd together accounted for 40 percent of Qualcomm’s revenue in fiscal 2016.
The US International Trade Commission agreed in August to look into a patent infringement complaint filed against Apple by Qualcomm in July, where it sought a bar on Apple selling some iPhones and iPads in the United States.