Apple-Qualcomm Never Ending Court Battles
Apple- Qualcomm Court Cases Continue
Qualcomm is one of the largest semiconductor and telecommunications equipment company in the world. The multi-billion worth company charges a royalty of 5% of the total sale price of a phone, a figure that can convert to more than $25 per device. Smartphone manufacturers choose to call it “the Qualcomm tax”. The price is fair considering that services from the company enable devices to access the internet resource.
Apple, being a giant manufacturer in terms of profits and returns, asked Qualcomm to cut the royalty fee to $10. Apple was to obey the reciprocity rule by staying away from challenging Qualcomm’s Patents. The iPhone makers were to avoid encouraging regulators to crack down on Qualcomm. In not so long at a Conference in Idaho, according to court files by Qualcomm, Apple again dishonoured the agreement. Its CEO Tim Cook is said to have urged Apple’s Korean competitor and ally, Samsung, to use its own government to intensify an investigation into Qualcomm which had been open since 2014.
The two US giant techs have been back and forth with court cases for some time now. Since 2015, Apple has always argued that the patent payments they make to Qualcomm should be based on the price of the modem rather than what the phone costs. That simply has implications of a lower figure. It was normal for Qualcomm to reject the offer. When Qualcomm stopped paying its usual rebates to Apple in 2016, the iPhone makers retaliated early this year by accusing Qualcomm of operating an extortion scheme.
Apple has been aggressive to see Qualcomm cut off royalty payments. This is probably one of the concrete reasons for their never-ending tackles. As Apple leads the race towards $1 trillion worth, it has to divide and rule its rivals to maintain at the top.