April 28 Qualcomm Inc said on Friday
Apple Inc will not pay royalties to its contract
manufacturers, that are owed to the chipmaker, for sales made in
the first quarter of 2017.
Qualcomm, the largest maker of chips used in smartphones,
also said the iPhone maker will withhold further payments until
the ongoing legal dispute with Qualcomm is resolved.
Apple sued Qualcomm in January accusing Qualcomm of
overcharging for chips and refusing to pay some $1 billion in
Shares of Qualcomm fell 4.3 percent to $50.91 in premarket
trading, while shares of Apple were up marginally at $143.92.
Qualcomm also slashed its profit and revenue forecasts for
the current quarter, to exclude royalty revenue from Apple's
The company said it now expects current-quarter revenue of
$4.8 billion-$5.6 billion, down from the $5.3 billion-$6.1
billion it had expected previously.
Qualcomm also cut its forecast for current-quarter adjusted
profit to 75-85 cents per share, from 90 cents-$1.15 per share.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Sai