Qualcomm released a statement last week announcing that its revenue is down 11% to that of the same period last year. The third quarter fiscal 2017 revenue stood at $5.37 billion, beating analyst estimates of $5.26 billion. Qualcomm’s net income was down 40 per cent (year-on-year) at $866 million. “The third quarter of fiscal 2017 results were negatively impacted by actions taken by Apple’s contract manufacturers, who did not fully report and did not pay royalties due on sales of Apple products,” Qualcomm said in a statement. The results were also impacted by “previously disclosed dispute with another licensee, who did not report or pay royalties due in the third quarter of fiscal 2017,” the statement said.
“We expect these licensees will continue to take such actions in the future until the respective disputes are resolved,” it added. The global chip maker had filed a new patent infringement lawsuit against Apple a few months back and now expects ‘out of court’ settlement with the Cupertino-based iPhone maker. Speaking at a US event this week, Qualcomm CEO Steve Mollenkopf said: “Those things tend to get resolved out of court and there’s no reason why I wouldn’t expect that to be the case here.”
He was comparing the dispute with Apple to earlier fights Qualcomm has had with other tech companies that were settled out of court. “We believe that we hold the high ground with regard to the dispute with Apple, and we have initiated new actions to protect the well-established value of our technologies,” Mollenkopf said in the statement on Thursday.
Story cited from The Financial Express