Qualcomm one of the most popular Chip manufacturers resolved its patent dispute with Giant Smartphone manufacturer LG in agreement for paying more for its new chips ordered to Qualcomm, meaning the company was satisfied with the companies offer.
LG stated that their “dispute with Qualcomm has been completely settled,” though they did not give further details on the said agreement. According to our source, Qualcomm overcharged LG for the chips under licensing contract.
The recent news about company’s lawsuit settlement emerged after Qualcomm’s profit forecast last January, which below expectation by its analyst. The Qualcomm expected its mobile device chip shipment fall by 16 to 25 percent in second quarter.
In addition the company expected both 3G and 4G capable device shipment decline by 4 to 14 percent. As for this year’s first quarter, Qualcomm’s shipment fell to 10 percent, with drop in revenue by 21.6 percent, revenue from device licensing also declined to 10.4 percent.
“This kind of dispute is actually nothing, as this is a kind of contract dispute which is very similar to the ones that the industries had in the past.” LG official said in a press conference.
“Samsung and Apple are making their own components for smartphones,” said by another official from LG adding that “It’s a pity to see LG has less leverage in discussions over an issue of royalty rate readjustment.”
LG invested millions of dollars just to develop its own version of chipset, in order for them to cut down dependency cost on Qualcomm for its mobile processors.