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.
As a result of the recent actions taken by Apple's contract manufacturers and the other licensee in dispute, we now do not believe total reported device sales and related estimated ranges of device shipment and average selling price are meaningful in measuring our QTL business, and therefore, we are not providing such metrics for the fiscal third quarter. Wall Street is expecting earnings of 90 cents a share on revenue of $5.48 billion.
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%. Analysts surveyed by Zacks had expected revenue of $5.42 billion. Qualcomm's forecast was more highly anticipated, however, amid a big fight between Qualcomm and Apple over the licensing fees Qualcomm commands for its patented technologies, but Qualcomm did not include licensing fees in its forecast.
Apple stopped reimbursing the contract manufacturers after it sued Qualcomm early this year.
Apple also directed four of its manufacturing contractors to stop paying license fees to Qualcomm for chips they incorporated into Apple products. "Most importantly, Qualcomm still commands a lead in 4G LTE and mobile 5G technologies, even though there are very credible competitors in fixed 5G". 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. (QCOM) on Wednesday reported fiscal third-quarter net income of $866 million.
Following the Qualcomm 3Q 2017 earnings report, the chip maker's stock slumped by as much as 2.43% to $55.40 in after-hours trades.
In the USA cases, Qualcomm is targeting imports of iPhones containing cellular baseband processors (the chips that handle radio communications) other than those supplied by its affiliates. During the regular session, Qualcomm shares rose 0.9% to 56.78. Apple has also formally joined the contractor case as a defendant.
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.