Qualcomm’s kind of a big deal
It is the largest supplier of semiconductors to the mobile phone market, commanding a 50% share.
Apple? Also kind of a big deal. By purchasing chips for the iPhone, it drives a quarter of Qualcomm’s $24 billion in revenue.
But a MAJOR disagreement over Qualcomm’s licensing practices has this marriage seeking counsel.
Put simply, Qualcomm’s massive hold on the semiconductor market has
allowed it to charge Apple to use its intellectual property, plus a 5%
royalty on every iPhone it sells (almost $980 billion worth since
2007…).
And this licensing-plus-royalty bundle has generated 80% of
Qualcomm’s pretax profits, which sends the message to Apple: “hey, if
you like our technology, then you’ve gotta pay for the right to use it.”
(BroBible.com)
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