Qualcomm suit claims Apple breached contract, shared proprietary info with Intel

Next Qualcomm sues Apple, accusing them of failing to abide by their software license, and additionally of using their unprecedented access to Qualcomm to benefit rival Intel. Qualcomm are claiming Apple breached their contracted agreement, which was arranged regarding the software necessary for mobile chips to interact with the rest of an Apple handset.

The two companies are embroiled in a worsening dispute over technology licensing fees that Qualcomm charges for patents that cover the basics of how mobile phone systems work.

Qualcomm's Q4 2017 operating income has dropped by 82 percent compared to Q4 a year ago as a result of royalty and licensing disputes with Apple and other licensees.

The latest lawsuit, which was filed in California state court, comes days after Bloomberg had reported that Apple is designing the latest iPhones and iPads without Qualcomm parts.

Qualcomm said its "modem that could be used in the next generation iPhone has already been fully tested and released to Apple".

Revenue from its Qualcomm CDMA Technologies (QCT) unit, which includes its chip business that supplies both Android smartphone makers and Apple, rose 13 percent to $4.65 billion.

Apple has relied on Qualcomm chips all along until iPhone 6 and iPhone 6 Plus, but with the iPhone 7 and iPhone 8 series, and the iPhone X, Apple started using a mix of Qualcomm and Intel chips.

Perhaps not coincidentally, Qualcomm's lawsuit follows hot on the heels of a report that Apple is considering to drop its modems entirely.

Apple reportedly has until June to make its decision, although that's a bit late in the game, considering that the Cupertino company usually announces its new iPhones in September.

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