Qualcomm: profit warning; Apple 'interfering' with contracts

(CercleFinance.com) - Qualcomm issued a profit warning on Friday, saying that Apple is "interfering" in agreements which the company has signed with manufacturers.


The San Diego-based chipmaker has been informed that Apple is withholding payments to its contract manufacturers for the royalties which these contract manufacturers owe under their licenses with Qualcomm.

Apple has indicated it will continue doing this until their dispute is resolved.

Last January the iPhone maker sued the chipmaker for one billion dollars, accusing it of being monopolistic and overcharging for licensing patents.

As a result, Qualcomm now expects third-quarter revenues to 31 March of between 4.8 billion dollars and 5.6 billion dollars, compared to 5.3 billion dollars-6.1 billion dollars previously.

Non-GAAP diluted EPS are now expected between 0.75 dollar and 0.85 dollar, compared with a previous guidance of 0.90 to 1.15 dollar.

Shares in Qualcomm fell 3.5 percent in pre-marker trading on Friday morning.

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