Qualcomm Countersues Apple, Says iPhone Wouldn't Be Possible Without Its Technologies

Qualcomm today announced it has countersued Apple in the U.S. District Court for the Southern District of California, nearly three months after the iPhone maker sued the chipmaker for $1 billion in alleged unpaid royalty rebates. Apple also accused Qualcomm of engaging in anticompetitive licensing practices.

Qualcomm X12
Qualcomm, which earlier called Apple's lawsuit "baseless," officially denied the majority of Apple's allegations, and accused the Cupertino-based company of failing to engage in good faith negotiations for a license to its 3G and 4G standard essential patents on fair, reasonable, and non-discriminatory terms.

The chipmaker also accused Apple of breaching its licensing agreements, making false statements, and encouraging regulatory attacks on its business in multiple countries. Qualcomm added that Apple has deliberately "chose not to utilize the full performance" of its LTE modem in its iPhone 7 and iPhone 7 Plus.

Apple uses Intel's XMM7360 and Qualcomm's Snapdragon X12 modems for GSM and CDMA models of the iPhone 7 respectively. Independent testing last year found Qualcomm's LTE chip to significantly outperform Intel's LTE chip in the iPhone 7, but it could theoretically be even faster.

Apple, however, said there is "no discernible difference" in performance between the Qualcomm and Intel modems in any of the models.

Qualcomm said Apple's statement misrepresented the performance disparity between iPhones using its modems and those using Intel-supplied modems. Apple then allegedly threatened Qualcomm about making any public comparisons about the apparently superior performance of the Qualcomm-powered iPhones.

Qualcomm, the exclusive supplier of 3G and LTE modems for iPhones until 2016, said Apple has "launched a global attack" against its company, using its "enormous market power" to coerce unfair and unreasonable licensing terms. The chipmaker insists that it will "vigorously defend" its business model.

“Over the last ten years, Apple has played a significant role in bringing the benefits of mobile technology to consumers with its popular products and services," said Don Rosenberg, executive vice president and general counsel of Qualcomm. "But Apple could not have built the incredible iPhone franchise that has made it the most profitable company in the world, capturing over 90 percent of smartphone profits, without relying upon Qualcomm's fundamental cellular technologies. Now, after a decade of historic growth, Apple refuses to acknowledge the well established and continuing value of those technologies. It has launched a global attack on Qualcomm and is attempting to use its enormous market power to coerce unfair and unreasonable license terms from Qualcomm. We intend to vigorously defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry.”

Qualcomm said Apple "could not have built the incredible iPhone franchise" without relying upon Qualcomm's "fundamental cellular technologies." In its countersuit, Qualcomm went as far as saying Apple has "contributed virtually nothing to the development of core cellular technology."

Apple is the world's most profitable seller of cellular devices. But as a late-comer to the cellular industry, Apple contributed virtually nothing to the development of core cellular technology. Instead, Apple's products rely heavily on the cellular inventions of Qualcomm and others. Apple's iPhones and other products enjoy enormous commercial success, but without lightning-fast cellular connectivity—enabled in large part by Qualcomm's inventions—Apple's iPhones would lose much of their consumer appeal.

Qualcomm is seeking, among other things, both compensatory and punitive damages from Apple in amounts to be proven in a jury trial for "reneging on its promises in several agreements." It is also seeking to be released from any obligation to make further payments to Apple, per the court filing.

Apple for its part accused Qualcomm of using its position as the supplier of a key iPhone component to drive up patent licensing fees. In January, the Federal Trade Commission alleged that Qualcomm required Apple to exclusively use its modems from 2011 to 2016 in exchange for lower patent royalties.

Popular Stories

Apple iPhone 16e Feature

Apple Announces iPhone 16e With A18 Chip and Apple Intelligence, Pricing Starts at $599

Wednesday February 19, 2025 8:02 am PST by
Apple today introduced the iPhone 16e, its newest entry-level smartphone. The device succeeds the third-generation iPhone SE, which has now been discontinued. The iPhone 16e features a larger 6.1-inch OLED display, up from a 4.7-inch LCD on the iPhone SE. The display has a notch for Face ID, and this means that Apple no longer sells any iPhones with a Touch ID fingerprint button, marking the ...
iphone 17 pro asherdipps

iPhone 17 Pro Models Rumored to Feature Aluminum Frame Instead of Titanium Frame

Tuesday February 18, 2025 12:02 pm PST by
Over the years, Apple has switched from an aluminum frame to a stainless steel frame to a titanium frame for its highest-end iPhones. And now, it has been rumored that Apple will go back to using aluminum for three out of four iPhone 17 models. In an investor note with research firm GF Securities, obtained by MacRumors this week, Apple supply chain analyst Jeff Pu said the iPhone 17, iPhone...
apple launch feb 2025 alt

Here Are the New Apple Products We're Still Expecting This Spring

Thursday February 20, 2025 5:06 am PST by
Now that Apple has announced its new more affordable iPhone 16e, our thoughts turn to what else we are expecting from the company this spring. There are three product categories that we are definitely expecting to get upgraded before spring has ended. Keep reading to learn what they are. If we're lucky, Apple might make a surprise announcement about a completely new product category. M4...
iPhone 17 Roundup Feature 2

iPhone Design to Change 'Significantly' This Year

Monday February 17, 2025 7:09 am PST by
Apple is set to "significantly change" the iPhone's design language later this year, according to a Weibo leaker. In a new post, the user known "Digital Chat Station" said that the iPhone's design is "starting to change significantly" this year. The "iPhone 17 Air" reportedly features a "horizontal, bar-shaped" design on the rear, likely referring to an elongated camera bump. On the other...
apple launch feb 2025

Tim Cook Teases an 'Apple Launch' Next Wednesday

Thursday February 13, 2025 8:07 am PST by
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag. The post includes a short video with an animated Apple logo inside a circle. Cook did not provide an exact time for the launch, or share any other specific details, so...
Generic iOS 18

Here's When Apple Will Release iOS 18.4

Wednesday February 19, 2025 11:38 am PST by
Following the launch of the iPhone 16e, Apple updated its iOS 18, iPadOS 18, and macOS Sequoia pages to give a narrower timeline on when the next updates are set to launch. All three pages now state that new Apple Intelligence features and languages will launch in early April, an update from the more broader April timeframe that Apple provided before. The next major point updates will be iOS ...
iOS 18

iOS 18.4 Coming Next Week With These New Features for Your iPhone

Friday February 14, 2025 6:18 am PST by
The first iOS 18.4 beta for iPhones should be just around the corner, and the update is expected to include many new features and changes. Bloomberg's Mark Gurman expects the iOS 18.4 beta to be released by next week. Below, we outline what to expect from iOS 18.4 so far. Apple Intelligence for Siri Siri is expected to get several enhancements powered by Apple Intelligence on iOS...
Apple 2025 Thumb 1

Two of Apple's Oldest Products Are Finally Getting Updated This Year

Friday February 14, 2025 6:03 am PST by
Apple released the HomePod mini in November 2020, followed by the AirTag in May 2021, and both still remain first-generation products. Fortunately, rumors suggest that both the HomePod mini and the AirTag will finally be updated at some point this year. Below, we recap rumors about the HomePod mini 2 and AirTag 2. HomePod mini 2 In January 2025, Bloomberg's Mark Gurman said Apple is ...

Top Rated Comments

Tycho24 Avatar
103 months ago
Funny. This is exactly what the Australian banks are so annoyed about. Apple comes in late (with apple pay in that instance) and uses its market power to bully smaller companies into giving a share of profits without taking any of the risks of developing the technologies in the first place.
Lol, really??
THAT is your take of the Australian bank situation??
Seriously? That Apple has a cockamamie half-baked insecure mobile banking solution, that it quickly jerry-rigged & threw out there... undermining the REAL technology and security innovators (a few Australian banks nobody has heard of), who put together something MUCH more secure than the secure enclave + TouchID & Apple shouldn't hold them back from making their solution the world standard.

Ummmm, ok.
Score: 17 Votes (Like | Disagree)
A MacBook lover Avatar
103 months ago
Qualcomm is a snake. A big one. Apples gotta get a little dirty to take down this evil entity
Score: 15 Votes (Like | Disagree)
tbobmccoy Avatar
103 months ago
Oooooooh snap! I really am sore having to deal with a weaker Intel chip in my phone. I'd have preferred if Apple just paid for the best chip here.
Score: 12 Votes (Like | Disagree)
techwhiz Avatar
103 months ago
I like Apple and I'm an Apple Shareholder.
But let's be real Apple is an 800 pound Gorilla.
Getting into bed with Apple can be hazardous to you business.
Ask Portal Player and Imagination Tech.
Score: 11 Votes (Like | Disagree)
Kittenyarn Avatar
103 months ago
Funny. This is exactly what the Australian banks are so annoyed about. Apple comes in late (with apple pay in that instance) and uses its market power to bully smaller companies into giving a share of profits without taking any of the risks of developing the technologies in the first place.
Score: 9 Votes (Like | Disagree)
MH01 Avatar
103 months ago
Qualcomm V Intel is why I returned my £1k + iPhone 7, my iPhone 6S got better reception (all throughout my house, while the 7 dropped out in certain rooms)

Not buying into all this legal crap, though the intel model is crap, and yes apple is lying through thier teeth if they expect us to believe that the intel model is the same as the Qualcomm. It's penny pinching crap for a very expensive phone.
[doublepost=1491891201][/doublepost]
Lol, really??
THAT is your take of the Australian bank situation??
Seriously? That Apple has a cockamamie half-baked insecure mobile banking solution, that it quickly jerry-rigged & threw out there... undermining the REAL technology and security innovators (a few Australian banks nobody has heard of), who put together something MUCH more secure than the secure enclave + TouchID & Apple shouldn't hold them back from making their solution the world standard.

Ummmm, ok.
"A few Australian banks nobody has heard of" you sound like one of those champs that think Australia is between Germany and Hungary .

We are talking about contactless tech here, though feel free to ignore the obvious here and move to goal posts to apple's implementation . The arguement is the NFC capabilities in the Apple phone that apple refuses to open up .....and it only works if you pay $$$$....cough anti competitive cough...

What exactly is your take on the Oz banking situation? Security? Maybe lack of equality / diversity ? It's a good way Tim spins facts these days :)
Score: 7 Votes (Like | Disagree)