On Friday, US tech giant Qualcomm Inc, has announced a reduction in its expected profit, as much as one-third after Qualcomm said that Apple has refused to pay the royalties fee for the technology used in iPhone.
This year, Apple filed a lawsuit against Qualcomm, by saying that the San Diego based chip maker has abused the control over the key technologies and charge the excessive licensing fees. On Friday, Apple has confirmed this news by stating that it has suspended the payment of Qualcomm unit the court can not determine what should it be.
Apple said “We tried to reach a licensing agreement with Qualcomm for more than five years, but they refused to negotiate on fair terms.”
“As we have said, Qualcomm’s claims are unfounded, and they charge higher rates based on our innovation, rather than the,” He added.
In an response to Apple claims, Qualcomm said “it will continue to defend itself in order to “get fair value for our technological contribution to the industry.”
For the period from April to June, Qualcomm now expects the earning of 75 to 85 cents per share. Previously it forecast its each revenue share by 90 cents to 1.15 dollars.
The revenue is now expected to be between $ 4.8 billion and $ 5.6 billion, compared with the previous forecast of between $ 5.3 billion and $ 6.1 billion.