Apple Inc accused QUALCOMM, Inc of overcharging for chips and refusing to pay some $1 billion in promised rebates. In December, Korean regulators hit Qualcomm with a $850 million fine over its patent-licensing practices.
For the iPhone 7 and 7 Plus introduced this year, Apple also started buying 4G LTE chips from another supplier, Intel.
Wall Street analysts had forecast fiscal first quarter revenue of $6.12 billion and non-GAAP earnings of $1.18 a share. Then, on January 25, the same day as Qualcomm's earnings call, news broke of two additional lawsuits Apple filed in Chinese court. The FTC said Qualcomm's use of low licensing fees was helping it to enforce its monopoly.
The company is continuing to fulfill its contracts with Apple today, and fully meant to "remain a good supplier to Apple", chief executive Steve Mollenkopf said.
"Of all the lawsuits that Apple has brought against its competitors, look at what they've sought in damages for just a couple of patents, or less than a handful of patents", Qualcomm general counsel Don Rosenberg noted.
"Apple was offered terms consistent with terms accepted by more than one hundred other Chinese companies and refused to even consider them", Rosenberg said.
"Apple has been actively driving regulatory attacks on Qualcomm's business in jurisdictions around the world and misrepresenting facts and withholding information,"Qualcomm President Derek Aberle said".Читайте также: Embiid To Miss 76ers Next Two Games
On its call, the company reported fiscal first-quarter revenue of $5.99 billion (up 4% annually) and adjusted EPS of $1.19.
Apple has also indicated that Qualcomm is piggybacking on Apple's innovations, extracting royalties for every new feature the company is able to develop such as TouchID and its own camera module.
The spat saw cases filed last Friday in California and this week in Beijing and were top of mind when Qualcomm conducted an earnings call with analysts on Wednesday. Sales gained 4 percent to $6 billion - Qualcomm's third straight quarter of increases after four consecutive double-digit percentage declines.
Qualcomm said it was ready to defend its business practices in court. "I'm confident we'll address and get through the legal challenges underway, as we have done many times in the past", he said.
Shares of Qualcomm have plunged year-to-date thanks to the lawsuits from the FTC and Apple. They did not specify which companies are not making expected payments, nor the value of those funds, but they did say the amounts will remain on the balance sheet until the dispute with Apple is resolved, at which point the company will adjust its financials based on the outcome.
As a result, the maker of chips used in many smartphones and other mobile devices saw its shares, which had risen 3.45 percent in trading Wednesday, fell by more than 2 percent in after-hours trading.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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