WHILE THE IMMEDIATE FINANCIAL LOSSES WILL OBVIOUSLY BELONG TO QUALCOMM, BUT IN THE LONG RUN APPLE MAY BE AS THE SAME, ACCORDING TO BUSINESS TECHNOLOGY NEWS. QUALCOMM‘S LAWSUIT AGAINST APPLE IS THREATENING A RELATIONSHIP THAT HAS HELPED BOTH BIG TECH COMPANIES EARN BILLIONS OF DOLLARS BY CLIMBING TO THE TOP IN THE SMARTPHONE REVOLUTION. LET’S SEE THE ANALYSIS FROM BEST TECH NEWS SITES.
Qualcomm filed a lawsuit against Apple’s lawsuit last Monday, which raises the possibility that the company will lose a large portion of its revenue by losing one of its largest customers. As for Apple, the lawsuit raises doubts about the ability of the iPhone to maintain its reputation for a leading product without the wireless technology of the giant chip maker.
Qualcomm shares decreases 2.1%. That is the highest level in more than two months, down to $55.35 on the New York Stock Exchange. So, within just 3 months since Apple filed a complaint on January 20, Qualcomm’s market value has lost nearly $14 billion. While Apple is still optimistic about the new iPhone coming out in the second half of the year, its stock alsp slipped 1.1%, down to $ 141.63 on Tuesday.
In 2016, the number of Apple shipments fell for the first time. That forces the company to focus more on profits, not just on growth. So Apple has increased pressure on suppliers to save money. And their battle with Qualcomm is the culmination of these tense negotiations.
Both companies criticized each other for lying, bullies and other illegal acts. The centerpiece of the controversy is about licensing fees. It has turned Qualcomm into the world’s most profitable chip maker and it may have reduced a few percentage points in iPhone profits.
According to Apple, Qualcomm is abusing the power of its major suppliers of smartphone chips and related patents to prevent competition. And they has earned billions in license fees that they do not deserve.