Apple’s Legal Assault on Qualcomm Is Part of Phone Margin Grab
- Qualcomm’s licensing gives it higher margins than customers
- Smartphone industry growth has evaporated, competition grown
Apple Sues Qualcomm Over Patent Royalties
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Apple Inc. is piling onto lawsuits that attack the way Qualcomm Inc. licenses technology for mobile phones in a widespread effort to rake back profits in a slowing market.
The latest suit by Apple, filed Friday, alleges that Qualcomm has unfairly used the power of its patents, which cover the fundamentals of phone systems, and its chip business to prop up its dominant position in the industry. Apple’s legal actions follow regulatory investigations and fines on three continents, including a lawsuit announced last week by the U.S. Federal Trade Commission.