Qualcomm fired back at Apple with allegations that Cupertino ‘chose not to utilize the full performance’ of its modem chips in the iPhone 7, and more.
Qualcomm is pushing back against Apple’s claims that it engaged in unfair business practices with some serious allegations of its own about the iPhone maker.
Qualcomm on Monday formally responded to Apple’s lawsuit, denying claims that it withheld contractually-obligated payments. Furthermore, Qualcomm fired back with allegations that Apple breached and mischaracterized agreements and negotiations between the two companies, and more.
Perhaps most damning, Qualcomm is claiming that Apple “chose not to utilize the full performance of Qualcomm’s modem chips in its iPhone 7” and “misrepresented the performance disparity between iPhones using Qualcomm modems and those using competitor-supplied modems.” Moreover, the countersuit claims that Apple “threatened Qualcomm in an attempt to prevent it from making any public comparisons about the superior performance of the Qualcomm-powered iPhones.”
On top of that, Qualcomm is accusing Apple of butting into “long-standing agreements” it had with contract manufacturers that build iPhones and iPads, and using “false statements” to push government regulatory bodies around the world to investigate Qualcomm.
“Apple could not have built the incredible iPhone franchise that has made it the most profitable company in the world, capturing over 90 percent of smartphone profits, without relying upon Qualcomm’s fundamental cellular technologies,” Qualcomm’s Executive Vice President and General Counsel Don Rosenberg said in a statement. “Now, after a decade of historic growth, Apple refuses to acknowledge the well established and continuing value of those technologies. It has launched a global attack on Qualcomm and is attempting to use its enormous market power to coerce unfair and unreasonable license terms from Qualcomm. We intend to vigorously defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry.”
Apple did not immediately respond to PCMag’s request for comment.
The countersuit comes after Apple in January, alleging extortion, sued Qualcomm for $1 billion. Apple’s suit, filed in federal district court in the Southern District of California, alleges that Qualcomm withheld contractually-obligated payments in retaliation for Apple’s cooperation with a Korean investigation into its business practices. That investigation ended with the Korean antitrust agency levying a record $854 million fine against Qualcomm last month.
Qualcomm makes the processors found in some models of the iPhone and many other smartphones and mobile devices, from flagship handsets like the Samsung Galaxy S7 to lower-end Android models.