Qualcomm has sued Apple, alleging that it violated a software license contract to benefit rival chipmaker Intel Corp for making broadband modems, the latest salvo in the longstanding dispute between Qualcomm and Apple.
As things now stand, Apple utilizes chips from Qualcomm and Intel, so suitable terms must be agreed before they can continue with their mutually beneficial collaboration.
Bloomberg reports that the loss of Apple's business could cut Qualcomm's revenue by 7.5 percent.
In January, around the same time Apple sued Qualcomm, a Qualcomm shareholder filed a class-action lawsuit against the company, demanding compensation for a fall in share prices that he blamed on the way Qualcomm's management has handled its anti-trust controversies.
In its complaint to the ITC, Qualcomm asked the body to ban 'iPhones that use cellular baseband processors other than those supplied by Qualcomm´s affiliates'.
The report claims that the final straw for Apple was when Qualcomm allegedly made a decision to withhold the software needed to test Qualcomm's own chips on Apple's prototype devices. Qualcomm has said Apple is mischaracterizing its practices. The chipmaker also says that an Apple engineer who was working with a competitor (still probably Intel) requested protected information about data download tech.
The US chipmaker Qualcomm's legal battle with Apple did not dampen its growth as the company beat estimates with $5.96 billion in sales in the fourth quarter of its fiscal year that ended September 30. Apple's decision about next year's products comes after the San Diego-based Qualcomm withheld software needed to test chips in prototypes, the Wall Street Journal reported.