Mobile chip market leader Qualcomm has forecast sales and profit that may miss estimates as it moves to defend its most profitable unit from regulatory and legal attacks around the world – including a major lawsuit from No. 1 customer Apple.Revenue in the chipmaker’s second quarter will be
US$5.5 billion (A$7.2-8.3 billion), the company said. Profit before certain
items will be $1.15 to $1.25 a share.
That compares with the average analysts’ projection for sales of $5.9 billion
and profit of $1.19 a share, according to data from Bloomberg.
Apple filed its lawsuit against Qualcomm in Beijing, alleging the chip supplier
had abused its clout and seeking 1 billion yuan (A$191 million) in damages.
Among other things, Apple contends that Qualcomm has been demanding royalties
on technology in Apple’s iPhone – for example the fingerprint ID system – that
have nothing to do with Qualcomm’s chip technology
Earlier this month, the US Federal Trade Commission also filed a complaint,
accusing Qualcomm of stifling competition, which led to Apple’s lawsuit in
California.
Qualcomm reckons that Apple gets just the same licensing terms as all its
other customers – and is reportedly planning to countersue.
