Qualcomm and Apple's grievances related to the patent issue have been going on for years. Recently, Qualcomm CEO Steve Mollenkopf said in an interview, Qualcomm is very clear of its current operating model, and he also believes that Qualcomm will be successful in the fight with Apple.
Morankov thinks that at present Qualcomm and Apple have put forward their own demands. Semiconductor business and licensing business are two main business of Qualcomm, among which licensing business is a way to maintain their own intellectual property rights by charging the relevant patent fees. Qualcomm has been committed to maintaining its own intellectual property that is protected by them confidently.
According to informed sources in August, San Diego federal court had filed a preliminary hearing for Apple’s prosecuting Qualcomm. Apple's partner Foxconn also participated in the hearing. Unfortunately, the differences between the two sides are still relatively large.
Apart from the legal representatives of Apple and Qualcomm, there is another legal team at this hearing, namely Apple manufacturers Foxconn, Pegatron, Wistron and Compal. This is mainly because Apple's suppliers have taken Qualcomm to court and think that Qualcomm has violated the anti-monopoly law.
The main divergence between the two sides is that Qualcomm hopes that it can continue to charge the licensing fee while Apple believes that Qualcomm should stop charging the licensing fee in the process of litigation. At the same time, Qualcomm's lawyers also mentioned that since the lawsuit with Apple, their market value has declined 20%. What’s worse, some Qualcomm customers have stopped paying the patent fee, and wait for the results of Apple and Qualcomm’s litigation.
Apple holds the idea that over the years, Qualcomm has been insisting on charging the licensing fee which is not related to its technology. The more unique features of Apple's innovation are produced, such as Touch ID, advanced screens and cameras, the more unreasonable fees will be charged by Qualcomm, meaning the higher innovation cost of Apple.
Apple insists on innovation and thinks that it is willing to pay a reasonable fee for using the patent. They are very disappointed with Qualcomm's way of doing business with them. Unfortunately, for years’ unfair and unreasonable fees, they have no choice but to put to the legal means.
Qualcomm also made a statement in its official website that although they are still in the litigation investigation, it is clear that Apple's claim is unfounded. Apple intends to misinterpret their negotiating agreement, the value of their patented technology, and their contribution to all mobile device manufacturers.
Qualcomm was fined by some countries because of monopoly, and Apple is clearly trying to get rid of Qualcomm's monopoly and huge licensing fees. When the technology is monopolized, it is terrible. For large technology companies, the diversity of the supply chain is extremely important, over-reliance on one supplier will have risk. Smartphone manufacturers typically purchase components from different vendors to maintain market and price stability.
If Apple gets rid of Qualcomm's monopoly and huge licensing fees, will it devote more money into innovation? Will the prices of Apple prices decline? Will that be good for us customers? What do you think of this?