Report: How Qualcomm Turned the Tide on Apple Report: How Qualcomm Turned the Tide on Apple – NTK Network

Report: How Qualcomm Turned the Tide on Apple

“After more than a year of conflict, the tide appears to be turning in Qualcomm’s favor,” according to Futurum’s Oliver Blanchard.

By NTK Staff | 07.31.2018 @3:00pm
Report: How Qualcomm Turned the Tide on Apple

For more than a year, tech giant Apple has picked on chip supplier Qualcomm, both in court and in the court of public opinion. Despite using Qualcomm’s chips, the fastest in the industry, Apple refused to pay royalties owed to its supplier. On top of that, the company did its best to make Qualcomm look like the bad guy by piling on when other bad news hit the San Diego-based company.

Futurum provides a quick summary of everything that was going wrong for Qualcomm in the past year-plus:

  1. Apple’s decision to stop making royalty payments to Qualcomm, pending the result of its lawsuit. (Thereby suddenly starving Qualcomm of significant quarterly revenues.)
  2. Taking advantage of the timing of Broadcom’s aggressive – but ultimately failed – attempt to acquire Qualcomm. (Which temporarily drove a wedge between cadres of Qualcomm investors, threatened to shake up the company’s board, and directed Qualcomm’s attention inward.)
  3. Taking advantage of the timing of the FTC’s antitrust action undertaken against Qualcomm.

But, the writer points out, “[a]fter more than a year of conflict, the tide appears to be turning in Qualcomm’s favor.” Oliver Blanchard explains:

And so, for the better part of 2017 and some of 2018, Qualcomm effectively found itself under siege, with some of its revenue cut off, foreign agents attempting to organize a coup within its walls, and outside political pressure judiciously applied to draw some of its defenses away from the main siege. The assault on Qualcomm was a brutal thing to watch from our vantage point, and to the San Diego giant’s credit, the fact that it came through the last fifteen months a little bruised and battered, but otherwise unscathed, is a testament to its resiliency. Most companies probably wouldn’t have fared so well after having endured that much, especially all at once.

And now, Qualcomm’s stock is rising to levels not seen since Apple’s initial lawsuit in January 2017. The company’s sure footing has helped boost confidence and eliminate uncertainty. And their 5G technology all but guarantees continued growth in the coming years.

The battle between the two companies is far from over, but as the tide continues to turn in Qualcomm’s favor, more questions may be raised about Apple’s commitment to its customers, its unethical business practices in China, and its loyalty to American workers.

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