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Published: Thu, November 02, 2017
Tech | By Dwayne Harmon

Apple looking beyond Qualcomm for smartphone components

Apple looking beyond Qualcomm for smartphone components

The latest quarter included a charge of US$778 million, or 52 cents per share, for the fine imposed by the Taiwan Fair Trade Commission for anti-trust violations of its chip technology.

The beef between Apple and Qualcomm began earlier this year following a complaint from the FTC that claimed Qualcomm was forcing Apple to use its baseband chips at higher royalties.

Qualcomm allegedly started withholding the software when Apple filed a lawsuit against it back in January.

Revenue from licensing intellectual property, which typically contributes well more than half of Qualcomm's pretax earnings, plummeted 36%.

Net income attributable to the company fell to US$168 million, or 11 cents per share, from US$1.60 billion, or US$1.07 per share, a year earlier. As a holder of patents essential to implementing cellular standards, Qualcomm collects royalties on almost every smartphone sold world-wide, regardless of whether they include the company's chips.

The tussle now threatens to spill into chip sales.

In another concern for the company, the Wall Street Journal reported Tuesday that Apple is designing its new iPhones and iPads to exclude Qualcomm chips.

The iPhone 8 and 8 Plus, which were only recently released, also used both Intel and Qualcomm chips.

QUALCOMM, Inc. shares were mostly flat on Wednesday afternoon following the report. Apple's move comes amid a dispute over the iPhone maker's access to the San Diego-based company's proprietary technology, according to people familiar with the matter.

The San Diego-based wireless chipmaker reported Q4 earnings per share (EPS) of $0.92, which was $0.11 better than the Wall Street consensus estimate of $0.81.

The San Diego-based wireless giant reported income of $168 million, or 11 cents per share, in the fiscal quarter ended September 24, compared to $1.6 billion, or $1.07 per share, in the same period past year. Analysts had expected 81 cents a share on $5.8 billion in revenue, according to a survey by Thomson Reuters.

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