Qualcomm outlines the impact of its legal battle with Apple

Responding to questions from the Securities and Exchange Commission (SEC), Qualcomm has disclosed further details about the impact of an ongoing dispute with Apple.

The world’s dominant supplier of baseband processors said in the regulatory filing that CDMA technology revenues from modem sales for iPhones "may continue to decline, in part depending on the extent of Apple's utilization of rivals' modems and the mix of the various versions that are sold... Apple's dual sourcing does not impact the licensing revenue.” The company said it would give further details on the impact of Apple's dual-sourcing model on product revenue, licensing revenue and profitability in its upcoming quarterly filing.

In January, Apple filed a lawsuit against Qualcomm, alleging the chip supplier demanded unfair terms for its technology.  However, Qualcomm denies the allegations and says Apple wouldn't have an iPhone business if it weren't for fair licensing of the company’s essential tech.

Qualcomm claims it went out of its way to offer alternative licensing (which Apple rejected), and that, in suing Qualcomm, Apple is motivated by reducing the cost to make iPhones.