Apple has filed a case against Qualcomm of $1 billion from both customers and regulator side.The lawsuit is result of federal Trade Commission on of faulty and less compatible innovation for mobile.They have claimed that the micro chips produced by Qualcomm are as per the international standards.
Apple claims that Qualcomm has charged unfair royalties:
Apple claims that company has charged large royalties of upgrade of even minimum functions.Finally in lawsuit the royalties has been proven unfair.When apple made small changes of just technology advancement and memory increased Apple has been charged large royalty share.Apple said that when tried to introduce new and unique features Qualcomm demanded huge sum of money which makes no sense.These innovations includes in crease in storage capacity,TouchID feature ,advanced display etc.
The royalty payment makes it difficult to pay such a huge sum.Apple said that there are many other company who has taken technology to next level but they charge lower patents but amount Apple paid to all other companies is more than they have paid to all other producers.
Apple claims that the sum of overcharge royalties of $1 billion, The withheld payment are from previous transaction not for the fine has been charged.As Qualcomm is exclusive partner of Apple in technologies they could may be able to cut down the extra royalties.
Complaints filed at Federal district court:
- Qualcomm gives license and manufacturing supplier that weaken the competition.
- If it is not get contracts with companies. Qualcomm gives threats to stop supply.
- At the smartphone manufacturers accept the unfair terms and they were imposed to pay desired demanded price and royalties.
- Smartphone Manufacturer are forced to use Qualcomm chips.
- The companies will not ready to use Qualcomm will face increase in prices.
- The large part of complaint lies on tussle between Apple and Qualcomm
Qualcomm business under attack:
Bernstein senior research analyst Stacy Rasgon said that it is hard time for Qualcomm to stay at business.Apple filed case has decreased it’s stock profit almost 2.5 percent. Qualcomm will continue it production of snapdragon and artificial intelligence app.Although if it wants to stay in the industry it has to lower down prices and royalty.