Apple Stock News: Apple’s Unlikely Lawsuit

Apple Stock News

For the latest Apple Stock News, AAPL closed at $120.00 on Friday, January 20, 2017 with a 0.18% gain, or $0.22 from its previous close of $119.78 per share.

Apple Stock News

Source: https://goo.gl/l0juvu

Qualcomm Inc. (QCOM) is no ordinary company that designs and markets telecommunication products and services, they also specialize in chip making for Apple’s iPhones. On Friday, Apple filed a $1 billion lawsuit against their partner Qualcomm in regards to overcharging for chips and failing to pay $1 billion in promised rebates. Qualcomm is said to be withholding $1 billion of payments from Apple in result of their truthful cooperation with law enforcement agencies investigating the chip maker and Apple’s discussions with South Korea’s antitrust regulator. Apple does not want to disregard these rebates owed to them, though, they had already given up on billions in rebates when they broke an exclusivity agreement with Qualcomm from 2011 to 2016 for using Intel modems in the iPhone 7 and iPhone 7 Plus. In a statement from Apple: “Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined” (Forbes). Apple insisted that this agreement diminished innovation and prefers to turn to multiple suppliers for cost efficiency reasons. Apple is extremely disappointed in the way Qualcomm has conducted their business and will continue using Intel as their supplier for the upcoming iPhone 8.

Apple’s lawsuit comes days after the Federal Trade Commission accused Qualcomm of excessive royalties and resorting to anti-competitive tactics to maintain control over key semiconductors in mobile phones.

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