Qualcomm warns on earnings as Apple stops payments

Qualcomm Inc (NYSE:QCOM) today warned its bitter dispute with Apple Inc (NASDAQ:AAPL) would mean a slump in profits in the current quarter.

Billion dollar writs and countersuits have been issued in the dispute over whether Apple should pay for Qualcomm’s technology whether it uses it or not in iPhones.

As a result of the dispute, Qualcomm said it expects no patent –license revenue for iPhones in this quarter.

Qualcomm does not get money directly from Apple but from contract manufacturers making iPhones.

Because of the wrangling Apple is withholding reimbursements to these contractors, which in turn are not paying Qualcomm.

Last week Qualcomm indicated it would get something, but now in an update said anything it does get would be “insignificant” .

Earnings or the quarter are forecast at between 52c to 62c compared to 67c to 92c previously, with revenues of between US$4.8bn and US$5.6bn compared to $6bn a year ago.

Shares fell 2.6% to US$51.80.

Story by ProactiveInvestors