Global tech giant Apple had recently sued chipmaker Qualcomm for almost $1 billion, but that will not stop the latter from continuing the supply of chips for the iPhone, according to a report. In a report on the technology based website Recode, Qualcomm thinks that it is just a small issue in the contract which Apple is making into a regulatory problem. Qualcomm is a big supplier to Apple as well as Samsung, as it provides them with chips which help smartphones connect to WiFi. Qualcomm’s, last year’s revenue was $23.5 billion, of which, these two companies accounted for almost 40 percent, according to Reuters. Apple meanwhile had accused the company of overcharging for its chips and not paying around $1 billion in rebates, to which the iPhone makers said that the latter’s discussion with South Korea’s antitrust regulator, the Korea Fair Trade Commission was the primary reason.
Meanwhile, according to Recode, sources have said that Qualcomm is trying to get the Apple case dismissed, but also might file a lawsuit itself as a response. But the report said that all these will not affect that fact that it supplies modem chips for the iPhone. This is important for Qualcomm, as it is still a leader in its market and it does not want rivals to take over, especially after Apple started using modem chips from Intel for its iPhone 7, though only for selected devices. Interestingly, is also facing another lawsuit, from the Federal Trade Commission, which accused the company of illegally tying up of chip sales to patent licensing. This essentially means, Qualcomm has been accused of not licensing patents to rivals as well as illegally forcing smartphone manufacturers which want its semiconductor chips in order to take a license to its technology.
Meanwhile, Korea Fair Trade Commission, in December fined Qualcomm of $854 million, for what it called unfair practices in patent licensing. The company will reportedly challenge this in the court. In another case, Qualcomm in 2015, paid a $975 million fine in China after a 14-month long investigation, while the European Union in the same year accused it of abusing its market power to thwart rivals.