ã€World Wide Web Reporter Zhang Zhiying】 After the conference call of the US Qualcomm Financial News last night, it once again caused a lot of attention in the previous quarter. At present, the lawsuits between mobile chip giants Qualcomm and Apple continue to expand, and the two sides have become increasingly fierce. This situation even masks relatively strong gains.
Due to Apple's intervention in the grant, Qualcomm filed a counterclaim. Apple's manufacturers defaulted on Qualcomm's grants, and now the whole situation is more complicated. Apple's suppliers are in between the two camps and suffer from the exchange of fire.
Apple said that the company has been using the Qualcomm Direct Licensing Agreement for many years, but has never felt that the conditions provided by Qualcomm are in line with the principles of fairness, reasonableness, and non-discrimination (FRAND). Qualcomm responded that the terms it provided to Apple are the same as those of hundreds of other companies, and they believe that the conditions for giving them to Apple are absolutely fair.
Qualcomm president Derek Aberle pointed out: "We have directly granted Apple the necessary patent license for the cellular standard, and it is consistent with the value of our patented technology and is in full compliance with Qualcomm's FRAND commitment. Unfortunately, Apple rejected these fair and reasonable offers.
In addition, Apple's suppliers reduced the amount of money that should be paid to Qualcomm on the contract, with a difference of nearly one billion US dollars.
Aberle said, "Although Apple claims to oppose Qualcomm, Apple's suppliers are obliged to pay Qualcomm licenses, including Apple's iPhone business, on the contract." Qualcomm stated that in the fiscal year of QUALCOMM in the second quarter, Apple actively induced Suppliers have reduced the amount of royalties paid by Qualcomm and prevented the licensing agreement between Qualcomm and Apple suppliers. In December last year, Apple suspended payments to its suppliers, which amounted to the same amount that Apple claimed to have accrued to Apple in cooperation with Qualcomm.
It is worth mentioning that the second fiscal year, the authorization proceeds won't be affected by the payment owed, because the supplier acknowledges that they have owed payment, and the amount of underpayment is the same as that of Qualcomm's holding Apple in the cooperation agreement.
Qualcomm believes that the manufacturer's claim that Apple did not pay their money, and Apple's claim that the amount paid was equivalent to what it considered Qualcomm’s owed to Apple by BCPA. These are all unrelated to Qualcomm's and manufacturer's license agreements. Therefore, it is absolutely unreasonable for producers to stop paying.
The contents of complaints filed by Apple with Qualcomm at the beginning of the year were mainly two points: First, Qualcomm’s monopoly on wireless network device chips, and secondly, Qualcomm illegally detained one billion US dollars belonging to Apple. Apple claimed that the fee was a rebate for both parties' transactions and should have been returned to Apple, but Qualcomm had detained it as a retaliation against Apple because Apple cooperated with the KFTC anti-monopoly investigation of Qualcomm.
In accordance with the United States General Accounting Principles (GAAP), Qualcomm’s total revenue for the second quarter of fiscal year 2017 was US$5.02 billion, a decrease of 10% from US$5.55 billion in the same period of last year; net profit attributable to Qualcomm was US$750 million, compared to the same period of last year. The US$1.16 billion fell 36%. Qualcomm also said that the revenue for the second quarter earnings was deducted from the $970 million related to the BlackBerry arbitration case, which was about $0.48 per share. Qualcomm unanimously adjusted its estimate to $1.34 per share, with a target revenue of $6 billion. According to the management, the automobile, internet of things and internet of things sectors performed particularly well.
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