In January of 2017, Apple filed a $1 billion lawsuit against Qualcomm which basically amounted to overcharging for chips and failing to pay rebates. This battle would go back and forth and become a massive point of contention for Qualcomm, which had a longstanding relationship with Apple — one that clearly wasn’t a very rosy one.
“The reason that we’re pursuing this is that Qualcomm‘s trying to charge Apple a percentage of the total iPhone value, and they do some really great work around standards-essential patents, but it’s one small part of what an iPhone is,” Apple CEO Tim Cook said regarding the legal battle on the company’s second-quarter earnings call last year. “It’s not — it has nothing to do with the display or the Touch ID or a gazillion other innovations that Apple has done. And so we don’t think that’s right. And so we’re taking a principled stand on it, and we strongly believe we’re in the right. And I’m sure they believe that they are, and that’s what courts are for. And we’ll let it go with that.”
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