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Apple dispute casts dark shadow over Qualcomm’s quarter, and its future

Accustomed to exceeding expectations in its quarterly results, Qualcomm had a rough ride when it announced its fiscal third quarter figures last week. Apple’s escalating lawsuit – which has now broadened to include antitrust filings from iPhone manufacturers – cast a long shadow over the chip giant as it reported a shocking 40% year-on-year decline in net income, to just $800m, with non-payment of disputed royalties by Apple’s contract manufacturers being a significant factor. And the news that another, unnamed licensee has also initiated litigation and withheld payments created fears that the rot is spreading in the Qualcomm model, and that the chip company will have to make more radical changes than it had planned, to reassure customers and investors…

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