In the past, Apple used Qualcomm’s modem chips in its flagship iPhone models to help them connect to wireless data networks. But early last year, Apple demanded Qualcomm slash the costs of its products, and when it refused it Apple stopped paying its licence fee. It then sued Qualcomm in federal court in San Diego, alleging that the chip company’s practice of taking a cut of the selling price of phones as a patent license fee was illegal.
Qualcomm denied the claims and has alleged that Apple owes it $7 billion in unpaid royalties.
There had been rumours that Apple and Qualcomm were secretly in talks. Apple has been stuck with Intel’s modems for its latest phones and could run into trouble if Chipzilla’s processing issues continue.
However, an Apple sauce told Reuters that there are no settlement talks between Apple and Qualcomm.
“There is absolutely no meaningful discussion taking place between Qualcomm and us, and there is no settlement in sight. We are gearing up for trial.”
This is the opposite to what Qualcomm’s chief executive, Steve Mollenkopf, told investors in July.
“We continue to talk. We also have some legal strategies that are in flight. And we hope that through the combination of either those paths, we could get to a resolution we’re confident that we will.”
Qualcomm is in a dispute with another phone maker, widely believed by analysts to be China’s Huawei Technologies Co Ltd, that is withholding payments. But talks with Huawei appear to be progressing.
In July, Qualcomm received what its patent licensing chief, Alex Rogers, called a “good faith partial payment” of $500 million from the non-paying phone maker, which Qualcomm executives said was a sign of progress in the talks. Qualcomm is slated to receive $200 million more in such payments, the executives have said.