Apple demanded $1 billion from Qualcomm for chance to win iPhone

Technology

FILE PHOTO: A woman checks her phone at a flagship Apple store at Iconsiam shopping mall in Bangkok, Thailand November 9, 2018. REUTERS/Soe Zeya Tun

(Reuters) – Apple Inc asked for $1 billion as an “incentive payment” from Qualcomm Inc in order for Qualcomm to become the supplier of modem chips for Apple’s iPhone, Qualcomm’s chief executive testified on Friday at a trial with U.S. antitrust regulators.

The $1 billion payment as part of a 2011 deal between Apple and Qualcomm was meant to ease the technical costs of swapping out the iPhone’s then-current chip with Qualcomm’s.

But Qualcomm CEO Steve Mollenkopf testified at a trial with the U.S. Federal Trade Commission that the hefty payment was part of why Qualcomm sought to become the sole supplier of Apple’s so-called modem chips.

Reporting by Stephen Nellis; Editing by Sandra Maler

Products You May Like

Articles You May Like

U.S. warns German firms of possible sanctions over Russia pipeline
WADA poised to decide fate of Russian agency
VW could face recall of more cars over emissions: report
Anaheim trades left wing Cogliano to Stars, acquires center Shore
Saudi Arabia sees domestic energy use falling, plans renewables push

Leave a Reply

Your email address will not be published. Required fields are marked *