Apple Contractors Gang Up On Qualcomm, File Antitrust Complaint

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Qualcomm countersued Apple in May for its retaliatory withholding of license payments.

That nominally beat analysts' forecast for an adjusted profit of 81 cents a share on revenue of $5.3 billion, according to a Thomson Reuters survey.

Wireless technology giant Qualcomm (QCOM) this afternoon reported fiscal Q3 revenue that comfortably topped analysts' expectations, and profit in line with consensus, and offered a forecast for revenue this quarter well above consensus, but profit lower than consensus. Revenue came in at $5.3 billion, surpassing analysts' estimated $5.28 billion.

Qualcomm's shares were up 53 cents at $56.82 in late day trading Wednesday on the Nasdaq exchange.

Qualcomm also contends Apple is behind actions by anti-trust regulators globally.

The sober earnings report follows a report today that four Asian contract manufacturers of Apple's are joining it in an antitrust dispute over the licensing fees Qualcomm charges for all smartphones regardless of whether they use one of its chips.

The Tame Apple Press is reporting that there have been four new complaints about Qualcomm's antitrust activities and citing this as proof that Apple is right and Qualcomm is evil. Apple sued Qualcomm in January, charging that the chip maker withheld almost $1 billion in rebates owed to Apple in retaliation for the iPhone maker's working with South Korean regulators.

For the quarter ended June 25, Qualcomm earned an adjusted 83 cents a share, down 28% year over year, on sales of $5.3 billion, down 12%.

Mollenkopf added that Qualcomm has "the high ground" in its dispute with Apple.

Apple has filed lawsuits against Qualcomm in the U.S., United Kingdom, Japan, Taiwan and elsewhere, alleging it engages in an illegal scheme to charge too much for patents.

Further complicating the quarter is Qualcomm's massive pending $39 billion acquisition of automotive chip maker NXP Semiconductors NV, which is expected to close by the end of the year.

Our financial guidance for the fourth quarter of fiscal 2017 excludes QTL revenues related to the sale of Apple products by Apple's contract manufacturers as well as the other licensee in dispute as we expect the recent actions taken by these licensees will continue until the respective disputes are resolved.

Shares of the company were down 2.3 per cent at US$55.40 after the bell on Wednesday.

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