Factories counter-punch Qualcomm in the gut as Apple eggs them on

  • Factories counter-punch Qualcomm in the gut as Apple eggs them on

Factories counter-punch Qualcomm in the gut as Apple eggs them on

As mentioned earlier, estimates at the moment may be complicated by how analysts asses the Apple revenue prospect.

Qualcomm Inc. (QCOM - Free Report) just released its third-quarter fiscal 2017 financial results, posting earnings of $0.70 per share and revenues of $5.4 billion.

Qualcomm forecast an adjusted profit of 75 to 85 cents, down from $1.28 in the fourth quarter of 2016 - quite a bit lower than the 93 cents analysts had been modeling. But investors still didn't like the report, knocking shares down by about 2 percent in after-hours trading late Wednesday.

Still, some analysts say that but for the Apple issues, Qualcomm would be doing well.

"Qualcomm has confirmed publicly that this lawsuit against our clients is meant to make a point about Apple and punish our clients for working with Apple", Theodore J. Boutrous, a lawyer for the four companies, said in a statement. Back in May Qualcomm sued Apple's iPhone suppliers for withholding royalty payments and today Apple's suppliers Hon Hai, Wistron, Compal Electronics and Pegatron have fired back with an antitrust lawsuit against Qualcomm alleging that the company has violated two sections of the USA based Sherman Act.

iPhone chip supplier Qualcomm faces a fresh set of antitrust allegations from a group of four companies that assemble the iPhone and other products on behalf of Apple.

Qualcomm has been ensnared in a legal dispute with Apple since January, when the tech giant sued the chipmaker for $1 billion, claiming that it collected royalties for technologies it wasn't involved with, including Touch ID and cameras.

The potential if Qualcomm loses the case, which began when the U.S. Federal Trade Commission filed an antitrust case against it, is that Qualcomm could be forced to refund billions of dollars. During the regular session, Qualcomm shares rose 0.9% to 56.78. This model has come under scrutiny by regulators in South Korea, the United States, and several other countries. It's expected that the dispute between Qualcomm and Apple could continue for quite some time, likely to Intel's benefit.

Further complicating the quarter is Qualcomm's massive pending $39 billion acquisition of automotive chip maker NXP Semiconductors NV, which is expected to close by the end of the year.

The San Diego-based company said it had profit of 58 cents per share.