In the ongoing feud between Apple and Qualcomm, the latter company today has brought four of Apple's main iPhone and iPad suppliers into the legal battle by filing a breach of contract complaint against Foxconn, Pegatron, Wistron, and Compal.

Qualcomm has sued the four manufacturers for "breaching their license agreements" by failing to pay royalties on the use of Qualcomm's technology in the assembly of Apple's devices. For its part in the production of iPhones, Qualcomm supplies the LTE modem in Apple's smartphone.

qualcomm logo
The cessation of royalty payments by the iPhone manufacturers isn't too surprising, as it follows a report from April in which Apple itself stopped paying its suppliers for royalties related to Qualcomm. According to Qualcomm, "the manufacturers say they must follow Apple’s instructions not to pay," so in retaliation Qualcomm is suing the four companies, asking them to comply with long-standing contractual obligations as well as pay any withheld royalties.

Qualcomm said that Foxconn, Pegatron, Wistron, and Compal are still paying royalties for Qualcomm technology related to non-Apple products "under the very same agreements that apply to the Apple products." Qualcomm further mentioned that its license agreements with the manufacturers began before Apple even sold its first iPhone, meaning that "Apple is not a party to the agreements" and shouldn't be able to interfere so heavily in its business.

“It is unfortunate that we must take this action against these long-time licensees to enforce our agreements, but we cannot allow these manufacturers and Apple to use our valuable intellectual property without paying the fair and reasonable royalties to which they have agreed,” said Don Rosenberg, executive vice president and general counsel of Qualcomm.

“As Apple continues to collect billions of dollars from consumer sales of its Qualcomm-enabled products, it is using its market power as the wealthiest company in the world to try to coerce unfair and unreasonable license terms from Qualcomm in its global attack on the company. Our license agreements with Apple’s manufacturers remain valid and enforceable. The manufacturers must continue to live up to their obligations under these agreements and Apple should immediately cease its tortious interference.”

In the original report relating Apple's suspension of royalty payments, the move was suggested to hurt Qualcomm to the tune of $500 million, causing the company to adjust its third quarter guidance from $5.3 billion - $6.1 billion in revenue down to $4.8 billion - $5.6 billion. The argument between the two companies originates back to an FTC complaint regarding Qualcomm's anticompetitive patent licensing practices, for which Apple sued Qualcomm, accusing the company of charging unfair royalties for "technologies they have nothing to do with."

The feud reached a boiling point in April due to Apple's decision to stop royalty payments to its manufacturers in relation to Qualcomm technology, and would continue doing so until the conflict was resolved. The move particularly hurt Qualcomm because the company's licensing deals are directly with iPhone suppliers, like the four it is now suing, and not Apple itself.

In a statement given last month, Apple said, "We've been trying to reach a licensing agreement with Qualcomm for more than five years but they have refused to negotiate fair terms." The company called Qualcomm's demands "unreasonable," arguing that Qualcomm has been "charging higher rates" based on Apple's own innovation in its devices, "not their own."

Top Rated Comments

4jasontv Avatar
106 months ago
Oooh, they should try suing the users too! They are benefiting from Qualcomm tech without paying. Also, there are the companies that ship Qualcomm's stuff and don't pay royalties. And of course tech news sites should pay. They are making ad revenue off of Qualcomm!
Score: 7 Votes (Like | Disagree)
yeah Avatar
106 months ago
Intel better step up their modem game...
Score: 4 Votes (Like | Disagree)
Avieshek Avatar
106 months ago
Let the game begin!

Qualcomm vs everybody.
Score: 4 Votes (Like | Disagree)
err404 Avatar
106 months ago
Apple will end up back-paying. The issue isn't the validity of the patent, it's the cost. Apple is claiming that the price is unfairly/inconsistently applied to different companies. Apple is withholding further payments until the court determines a fair rate. At that point Apple will pay the new agreed amount.
Score: 4 Votes (Like | Disagree)
agsystems Avatar
106 months ago
Is Qualcomm the only player in the game for this technology and can it be done else where?
I don't think you can be backward compatible and not use their patents - you can come up with a clean room implementation for next gen 6G but since you will need to support 3G/4G/5G, you will still have to pay up.
Score: 3 Votes (Like | Disagree)
PBG4 Dude Avatar
106 months ago
I think the more it is Qualcomm vs everybody, the less likely Qualcomm is to win. I don't know anything about the licensing for this particular part, but if there is a way for anyone else to make this part and Qualcomm looses the court case...no more Qualcomm
Qualcomm owns the patents behind wireless communication technology. Even if someone else invented a replacement chip, they'd still have to license spectrum-related patents. It's like that FRAND lawsuit between Apple and Nokia years back over 3G patents.
Score: 3 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro Lower Logo Feature 1

iPhone 17 Pro Coming Soon With These 14 New Features

Monday June 30, 2025 1:08 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are less than three months away, and there are plenty of rumors about the devices. Apple is expected to launch the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max in September this year. Below, we recap key changes rumored for the iPhone 17 Pro models:Aluminum frame: iPhone 17 Pro models are rumored to have an...
A18 Pro Chip

New MacBook With A18 Pro Chip Spotted in Apple Code

Monday June 30, 2025 8:05 am PDT by
Apple is developing a MacBook with the A18 Pro chip, according to findings in backend code uncovered by MacRumors. Earlier today, Apple analyst Ming-Chi Kuo reported that Apple is planning to launch a low-cost MacBook powered by an iPhone chip. The machine is expected to feature a 13-inch display, the A18 Pro chip, and color options that include silver, blue, pink, and yellow. MacRumors...
Apple Watch Ultra Night Mode Screen

Apple Watch Ultra 3 Launching Later This Year With Two Key Upgrades

Wednesday July 2, 2025 1:13 pm PDT by
The long wait for an Apple Watch Ultra 3 appears to be nearly over, and it is rumored to feature both satellite connectivity and 5G support. Apple Watch Ultra's existing Night Mode In his latest Power On newsletter, Bloomberg's Mark Gurman said that the Apple Watch Ultra 3 is on track to launch this year with "significant" new features, including satellite connectivity, which would let you...
iPhone 17 Pro Lower Logo Magsafe

iPhone 17 Pro's New MagSafe Design Revealed in Leaked Photo

Wednesday July 2, 2025 8:37 am PDT by
The upcoming iPhone 17 Pro and iPhone 17 Pro Max are rumored to have a slightly different MagSafe magnet layout compared to existing iPhone models, and a leaked photo has offered a closer look at the supposed new design. The leaker Majin Bu today shared a photo of alleged MagSafe magnet arrays for third-party iPhone 17 Pro cases. On existing iPhone models with MagSafe, the magnets form a...
macbook air spacegray purple

Apple Planning to Launch Low-Cost MacBook Powered By iPhone Chip

Monday June 30, 2025 3:20 am PDT by
Apple is planning to launch a low-cost MacBook powered by an iPhone chip, according to Apple analyst Ming-Chi Kuo. In an article published on X, Kuo explained that the device will feature a 13-inch display and the A18 Pro chip, making it the first Mac powered by an iPhone chip. The A18 Pro chip debuted in the iPhone 16 Pro last year. To date, all Apple silicon Macs have contained M-series...
iOS 18

Apple Releases Second iOS 18.6 Public Beta

Tuesday July 1, 2025 10:19 am PDT by
Apple today seeded the second betas of upcoming iOS 18.6 and iPadOS 18.6 updates to public beta testers, with the betas coming just a day after Apple provided the betas to developers. Apple has also released a second beta of macOS Sequoia 15.6. Testers who have signed up for beta updates through Apple's beta site can download iOS 18.6 and iPadOS 18.6 from the Settings app on a compatible...
Wi Fi WiFi General Feature

iOS 26 Adds a Useful New Wi-Fi Feature to Your iPhone

Wednesday July 2, 2025 6:36 am PDT by
iOS 26 and iPadOS 26 add a smaller yet useful Wi-Fi feature to iPhones and iPads. As spotted by Creative Strategies analyst Max Weinbach, sign-in details for captive Wi-Fi networks are now synced across iPhones and iPads running iOS 26 and iPadOS 26. For example, while Weinbach was staying at a Hilton hotel, his iPhone prompted him to fill in Wi-Fi details from his iPad that was already...
maxresdefault

Five Features Coming to AirPods Pro 3

Friday June 27, 2025 10:52 am PDT by
Apple hasn't updated the AirPods Pro since 2022, and the earbuds are due for a refresh. We're counting on a new model this year, and we've seen several hints of new AirPods tucked away in Apple's code. Rumors suggest that Apple has some exciting new features planned that will make it worthwhile to upgrade to the latest model. Subscribe to the MacRumors YouTube channel for more videos. Heal...
replay all time playlist apple music

Apple Music Debuts All-New Personalized Playlist

Monday June 30, 2025 7:16 am PDT by
As part of its 10-year celebrations of Apple Music, Apple today released an all-new personalized playlist that collates your entire listening history. The playlist, called "Replay All Time," expands on Apple Music's existing Replay features. Previously, users could only see their top songs for each individual calendar year that they've been subscribed to Apple Music, but now, Replay All...