Is Apple About To Ditch Qualcomm Chips?

In the suit filed on Wednesday, Qualcomm claims Apple breached the terms of a software agreement in an attempt to assist its chief rival Intel. The chipmaker also says that an Apple engineer who was working with a competitor (still probably Intel) requested protected information about data download tech.

Qualcomm has raised the stakes in its ongoing legal battle with Apple by filing a new lawsuit with potentially enormous ramifications.

The Apple-Qualcomm stand-off is centred over patent licensing with the iPhone maker accusing the chip designer of abusing its market dominance with high royalties.

According to the report, the lawsuit states that Apple emailed Qualcomm asking for product information with an Intel engineer copied on the message. Notably, the lawsuit comes days after a report that Apple is designing future generation iPhones that don't use a Qualcomm chip at all. Qualcomm is now the largest manufacturer of chips for mobile devices by far, but that could change in favor of companies like Intel and MediaTek if Apple decides to walk away for good. Second, the iPhone maker has been manufacturing some of its devices with Intel modems since past year, which could potentially give Qualcomm's allegations more weight in court.

Shah said that these statements were "materially false", "misleading" and "failed to disclose adverse facts pertaining to Qualcomm's business, operational and financial results, which were known to [Qualcomm] or recklessly disregarded by them". Apple and Qualcomm have been in a messy legal dispute since the start of the year.

In contrast, revenue from Qualcomm's licensing business fell 36 percent to $1.21 billion in the quarter ended September 24.