Linked by Thom Holwerda on Wed 4th Oct 2017 10:56 UTC
Legal

Within a matter of weeks, Qualcomm, which had been valued at more than $100 billion in December 2016, had lost a quarter of its market capitalization, an outcome that Qualcomm executives say was Apple's intent all along. "Apple's game plan is to squeeze people until they finally say, 'OK, the pressure's too hard. I'll just take a deal,'" said Derek Aberle, then Qualcomm's president and the company's chief negotiator, in an interview in July. Apple, on the other hand, presents the dispute as a matter of fairness. "It's not that we can't pay," Sewell says. "It's that we shouldn't have to pay."

The case, which could go to trial in a San Diego federal court as early as next year, could have a profound impact on the mobile phone business. A Qualcomm win would hamper Appleā€™s efforts to cut costs and preserve margins that have allowed it to capture most of the profits generated by smartphone makers worldwide. If Apple wins and succeeds in ending the Qualcomm tax, that could marginalize one of the most powerful American technology companies and upend the balance of power in the semiconductor industry.

I have zero sympathy for either of these two companies. I literally cannot find a single fournication to give.

Permalink for comment 649493
To read all comments associated with this story, please click here.
RE: Qualcomm is in the wrong
by ksec on Wed 4th Oct 2017 15:29 UTC in reply to "Qualcomm is in the wrong"
ksec
Member since:
2013-04-04

Exactly. You dont have to buy an iPhone, You dont have to buy an Android either, it could be Windows Phone, but you cant escape the 4G LTE patents which Qualcomm collect.


I hope this will soon open up to the public how ridiculously expensive these patents are. And it was one of the reason why HEVC, also called H.265 Video Compression Standard has its patents price jacked up by 20 times. Once they saw what could be done on the mobile Phone patents. (* H.264 only cost tens of cents per devices and capped about 5 million / year. H.265, when all three patents pool combined could cost $100+ Million / year! )

If we just assume $10 per devices on all 4G / 3G patents, on a industry scale of ~1 BILLION 4G smartphone shipment, that is $10B / year revenue spread across a few companies ( The industry has consolidated and there are only few left ), for the life time of 4G that is $100B / year for these patents! And that is if the shipment unit dont grow, it is very likely we will hit 1.5 or even 2B 4G devices in the next 5 years.

That is if it was actually $10 per devices, and it is not! It is charged with a minimum rate along with % of the devices. I.e The industry as whole are gouging 10s of billions every year from these patents! And we are talking about devices only, we havent included those from Infrastructure uses, i.e The one your Mobile Carrier buys equipment from.

Then Qualcomm, the major owner of all LTE patents also sell its baseband chip with significant profits. Hence the double dipping. Some would argue that is because Qualcomm engineered the best baseband for the price. Which is true, but the whole system is so integrated, Qualcomm essentially has made LTE what it wanted for CDMA, a complete closed monopoly within its hand that you can not escape from. They have their baseband modem ready as soon as the design for next 3GPP draft were approved and put into usage.

I am not against patents by any means, innovation comes at a price. But somewhere along the line they have jacked the price far too high. I hope someday someone like Intel will retry WiMax again.

Reply Parent Score: 3