Qualcomm has buried the hatchet with LG after the smartphone vendor agreed to pay more for its chips.
LG said the dispute with Qualcomm has been completely settled, although it did not say how much it had agreed to pay. Earlier it had claimed Qualcomm had overcharged for the chips under a licensing contract.
The news about the lawsuit settlement emerged following Qualcomm’s profit forecast for the second quarter in January, which was below what Wall Street’s tarot readers had predicted.
The company expected its mobile chip shipment to fall by 16-25 per cent in the second quarter. Additionally, it expected 3G and 4G device shipment to decline by 4 to 14 per cent. As for the first quarter of 2016, Qualcomm’s chip shipment fell 10 per cent , with a drop in revenue by 21.6 per cent. Revenue from licensing declined 10.4 per cent, suggests a Reuters report.
An LG spokesperson said that this kind of dispute was “actually nothing” and was similar to the ones that the industries had in the past.
“Qualcomm has lowered its royalty rate to LG in return for LG’s guaranteed purchase of Qualcomm processors, which are currently being used in its flagship handsets and will be used in upcoming flagship models,” added the official.
Qualcomm might have been a little nervy. LG has invested millions to develop its own chipset, in an attempt to cut down its dependency on Qualcomm for mobile processors.
Courtesy-Fud
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