Qualcomm’s profits evaporate due to disputes with Apple and ‘other licensee’

Qualcomm’s profits have evaporated in recent months due to the legal battle with Apple and another undisclosed licensee. This can presumably only concern Samsung or Huawei, the two other major global smartphone makers.

Qualcomm’s profits fell from $1.59 billion in the same quarter a year ago to $186 million today, down more than 89 percent, Qualcomm reports. The decline is entirely due to the legal battle with Apple and the other undisclosed licensee.

Like Apple, the other licensee refuses to pay. Foss Patents previously speculated that it is probably Samsung, although Huawei is also a possibility. Those are the only manufacturers big enough to reduce Qualcomm’s revenue if they don’t pay licenses.

The legal battle between the chip designer and Apple revolves around patents. Qualcomm claims Apple has broken the rules when licensing its patents. Apple wants some patents declared invalid. The Cupertino company also demanded that Qualcomm pay back a billion dollars and significantly reduce the amounts for the license payments. According to Apple, Qualcomm is abusing its monopoly on the market for mobile chips.

In response to this lawsuit from Apple, Qualcomm in turn sued Apple in April. The chip designer wants compensation for broken agreements and wants Apple to stop interfering in agreements between Qualcomm and iPhone and iPad manufacturers. Apple is also said to have incited national regulators to ‘attack’ the chip designer.

Qualcomm’s revenue fell 5 percent from $6.2 billion to $5.9 billion. That decrease is also due to the legal entanglements with Apple and the other smartphone maker, the chip designer reports.