Qualcomm Calls Tim Cook's Statement on Settlement Talks 'Misleading'

[MacRumors]

Apple CEO Tim Cook in an interview yesterday said that Apple had not been in any kind of settlement talks with Qualcomm since the third calendar quarter of 2018, which ended in September.

Cook was referencing November comments from Qualcomm CEO Steve Mollenkopf, who said during a November 7 earnings call that Qualcomm has "continued to have discussions with Apple to try and reach a resolution" and in an interview later in the month that the two companies were "really on the doorstep of finding a resolution."

After Cook made it clear yesterday that no settlement talks had taken place when those comments were made, Qualcomm in a statement told Reuters that what Cook had to say was "misleading" and that the company stands by Mollenkopf's statement.

"We have been consistent for the last 18 months in making clear that we have, at various times, been in discussions with Apple about a possible resolution to our licensing dispute," a Qualcomm spokesperson said in a statement. "We have also stated clearly on several occasions that we believe it will be resolved, one way or the other, in the near future, either through a settlement or court decisions."

In response, Apple said that Cook's comments were accurate. "Qualcomm is desperate to obfuscate the tales it has been telling its investors. Their accusations are a red herring," said Apple.

Cook yesterday had no kind words for Qualcomm, calling its policies "illegal."

The issues that we have with Qualcomm is that they have a policy of no license, no chips. This is, in our view, illegal. And so many regulators in many different countries agree with this. And then secondly, the obligation to offer their patent portfolio on a fair, reasonable, and nondiscriminatory basis. And they don't do that. They charge exorbitant prices. And they have a lot of different tactics they use to do that. And that's not just us saying that. I mean, you can see what's coming out of the FTC trial here in the United States.

Cook also spoke about Qualcomm's alleged tactic of spreading fake news, which came to light after a November report from The New York Times and subsequent followup reports suggested Qualcomm may have hired a research firm (Definers Public Affairs) to share negative stories about Apple.

"This is stuff that should be beneath companies," said Cook. "This is not how things should operate."

Apple and Qualcomm have been involved in an increasingly bitter legal battle since the beginning of 2017, with Apple refusing to pay unfair royalties to Qualcomm and Qualcomm countering with patent lawsuits and other litigation.

Qualcomm has achieved a preliminary import ban against the iPhone 7 and the iPhone 8 in China and Germany. Apple was able to sidestep the China ban with a software update, but has stopped selling its devices in Germany.

In addition to its ongoing dispute with Apple, Qualcomm is this week facing an antitrust trial levied by the FTC. The FTC, like Apple, claims that Qualcomm uses its position and portfolio of patents to impose anticompetitive supply and licensing terms on manufacturers.

Article Link: Qualcomm Calls Tim Cook's Statement on Settlement Talks 'Misleading'

 

[AngerDanger]

"Misleading"? Please, Qualcomm, around here we only use adjectives that double as meat products.

Bologna
Chicken
…uh

 

[Andres Cantu]

This is getting just as annoying as Apple vs. Samsung. Hope something good comes out of it.

 

[SecuritySteve]

Pass the popcorn.

 

[diamond3]

Well Qualcomm didn't exactly deny all of what Tim Cook stated which makes me feel like they're acknowledging some validity to what he said or can't refute it. My guess is there has been some sort of communication between lawyers in 18 months, but no meaningful discussion.

 

[CreeptoLoser]

Qualcomm should make their own phones and lets see what a piece of crap they make.

Arm Holdings is a company that behaves much better. They know how to make their licensees happy.

 

[now i see it]

Tech media baiting them to speak

 

[macsrcool1234]

They charge exorbitant prices

Something Tim Cook knows a thing or two about. Not so great being on the other side, huh?

 

[Joesg]

"Misleading"? Please, Qualcomm, around here we only use adjectives that double as meat products.

Bologna
Chicken
…uh

beef

 

[Apple Knowledge Navigator]

Tim Cook is well tuned to misleading. After being questioned about product leaks, he went on record as saying that Apple was "laser focused" on closing the gaps; yet since then they've actually had more and more each year.

Keys on your MacBook Pro stop working properly or become sticky? Not his problem. But the silicone membrane on the revision was for dampening noise levels? Hm.

And it must suck to be an investor, now safe in the knowledge that he will no longer reveal sales numbers for iPhones, despite apparent record sales.

 

[Michael Goff]

Something Tim Cook knows a thing or two about. Not so great being on the other side, huh?

If you don’t know the difference between consumer electronics and standards essential patents, I don’t know what to say.

 

[44267547]

This Qualcomm vs Apple see-saw battle is completely exhausted in their stubbornness trying to blame one over the other for whatever they can. It’s partially ego-based centric attitudes for both parties.

 

[Sasparilla]

Lets see where the FTC suit against Qualcomm goes, till then there probably isn't going to be much progress made.

As diamond3 pointed out, Qualcomm didn't refute what the Apple CEO was saying.

The thing for Qualcomm is that the market (smartphone CPU) could turn on them very quickly - once they don't have a patent chokehold forcing big Mfrs to buy chips from them for sales in the U.S. (what the FTC is pushing on). For example the biggest Android manufacturer in the U.S. is Samsung by far and they design / make their own CPU's and I'm sure they'd much rather be selling U.S. phones with their own CPU's than Qual's. Same for the Chinese makers - I know Huawei has their own CPU's and wouldn't want to be using Qual's CPU's where they do either. Once that chokehold is off Qualcomm could see their CPU market gutted in a generation or two (there would still be those vendors not making their own CPU's but here in the U.S. those are small potatoes.

 

[cmaier]

Not seeing where Qualcomm is actually pointing out anything Tim said that wasn’t true

 

[tcphoto1]

I think that his comments could easily be applied to Apple. Their products are very good but the pricing is not proportional to what they deliver. Perhaps their profits have been too good for too long and it's made them lazy. Qualcomm seemed to have taken a page out of the Apple playbook.

 

[cmaier]

I think that his comments could easily be applied to Apple. Their products are very good but the pricing is not proportional to what they deliver. Perhaps their profits have been too good for too long and it's made them lazy. Qualcomm seemed to have taken a page out of the Apple playbook.

Huh?

 

[mi7chy]

Smart consumers want the outcome that leads to having superior Qualcomm radio as an option until Intel improve while allowing more competition.

Apple don't want smart consumers to have a choice and will force what's most profitable while customers suffer with poorer reception, lower speeds and lack of 5G future proofing.

 

[Bacillus]

Qualcomm should make their own phones and lets see what a piece of crap they make.

Usually, companies tend to do what they do the best.
For Apple that leaves them a modem supplier lagging at least 1 year in 5G tech.
Which might turn out to be far more harmful than paying Qualcomm licenses.

 

[cpfoto2005]

Qualcomm has achieved a preliminary import ban against the iPhone 7 and the iPhone 8 in China and Germany. Apple was able to sidestep the China ban with a software update, but has stopped selling its devices in Germany.

Should probably read "...stopped selling those devices in Germany." since other Apple products are still for sale in that country.

 

[iBluetooth]

I think that his comments could easily be applied to Apple. Their products are very good but the pricing is not proportional to what they deliver. Perhaps their profits have been too good for too long and it's made them lazy. Qualcomm seemed to have taken a page out of the Apple playbook.

Actually you don't have to buy any Apple product, but all phone makers have to pay Qualcomm $30 for each phone they sell, irrelevant of whether they use Qualcomm chips or Intel chips. Samsung can't sell their superior chips to other phone manufacturers as they would loose Qualcomm license. The government will ban this monopoly of Qualcomm to allow competition finally after Qualcomm killed off all the 3G chip competitors.

 

[MoreRumors?]

And in the end, consumers are the one who will end up paying. I wish both CEOs would just have a MMA match to settle this dispute once and for all.

 

[iBluetooth]

And in the end, consumers are the one who will end up paying. I wish both CEOs would just have a MMA match to settle this dispute once and for all.

The dispute is with the government so settling with Apple will not solve the problem of Samsung that is hurt by Qualcomms monopoly.

 

[lederermc]

Apple could lower the price of their phones to match an Android phone but charge a mandatory one-time IOS software fee. Thus, lowering their Qualcomm fees.

 

[Bacillus]

Actually you don't have to buy any Apple product, but all phone makers have to pay Qualcomm $30 for each phone they sell, irrelevant of whether they use Qualcomm chips or Intel chips. Samsung can't sell their superior chips to other phone manufacturers as they would loose Qualcomm license. The government will ban this monopoly of Qualcomm to allow competition finally after Qualcomm killed off all the 3G chip competitors.

Meanwhile Apple has passed that fee on to us customers but wants it back from Qualcomm (?)

 

[Baymowe335]

I think QCOM more "hope" Cook's comments were misleading because he had a pretty hard stance on them.

He really didn't sugarcoat it at all. QCOM is probably worried he was serious.