Qualcomm says modem sales to Apple are declining in the midst of lawsuits

Qualcomm told the Securities and Exchange Commission that sales of its modems with CDMA tech to Apple are expected to fall as litigation continues over patent licenses.

Modem shipments have already started slipping as GSM-only iPhone 7 units now mostly feature Intel parts. Word that competitors’ CDMA efforts are gaining ground should worry the company’s investors, especially as the iPhone 7s, iPhone 7s Plus and iPhone 8 are already in full production mode right now.

The good news, according to Reuters? Licensing fees are negotiated out to a flat fee, regardless of modem sales. However, those licensing revenue is dependent on Apple paying them in the first place — a complicated royalties system has effectively stopped in its tracks between Qualcomm, Apple and all their associated partners.

The US International Trade Commission is looking into the chipmaker’s request to put an injunction on iPhone imports.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.