Despite a $1 billion lawsuit filed by Apple, Qualcomm has affirmed that it would continue its usual supplies to the company.
Apple states that the chipmaker is involved in monopolistic practices, extortion, price gouging, and other unethical business strategies.
According to a new report, even as Qualcomm allegedly considers filing a countersuit against Apple, it will not let the legal tussle affect business policies and will continue to supply the company with mobile modems and other components.
Apple Vs. Qualcomm
The allegations made by Apple is due to Qualcomm's refusal to pay $1 billion as licensing rebates. With the cooperation from the Korea Fair Trade Commission, Apple has probed into the business practices of the chipmaker. According to investigations, Qualcomm was fined and asked to pay $854 million, which it subsequently denied paying.
Apple accuses Qualcomm of "double dipping" as it practices selling chips to those who have first agreed to license the SEPs first.
Another allegation leveled by the FTC suggests that Qualcomm forced Apple to buy wireless chips for higher royalty rates.
Countersuit From Qualcomm
It is reported that Qualcomm will not take things lightly and is considering filing a countersuit against Apple.
"Sources close to Qualcomm say the company is considering filing its own lawsuits in response, whether in the U.S. or elsewhere, as well as trying to get Apple's case dismissed," notes a report from ReCode.
This news suggests that the chipmaker will put aside any differences and continue to work on the production process apart from supplying mobile modems to Apple for its smartphones.
With its reputation in jeopardy, Qualcomm needs to fight the claims made by Apple or at least prove its point. Since it cannot afford to lose its prospective clients, the company is left with very little choice but to fight the case while working on improving its business acumen.
Apple, too, is dependent on Qualcomm for support even if the company has its own processor.
Qualcomm avers that the iDevice maker is converting what is simply a contractual dispute into a regulatory offense. Qualcomm has termed the allegations baseless and reportedly believes that Apple could be instrumental in provoking the chipmaker to retaliate with a potential countersuit.
Photo: Jason Ralston | Flickr
