Powerful chipmaker Qualcomm is just too powerful, judge rules
Next up Qualcom.
A Us judge will today about the powerful chip maker is in fact too powerful, and a ruling had agreed with the Us federal trade commission.
The judge said Qualcom suppress competitors for wireless chips and exploited its dominance.
Charge unnecessary licensing fees.
So in your coverage, you've said that this basically means Qualcomm is gonna have to change its entire business model.
So Qualcomm sells chips but a huge part of their business is licensing their technology to handset makers, so they don't license to competitors like it Intel or Mediatek.
They license based on the entire value of a phone.
Because their patents don't just cover the chip, they cover other things that maybe aren't covered in just the processor.
So basically, this judge is saying they have to license to chipmakers.
It means they could be making a lot less on royalty fees.
Anybody that they currently have a contract with that may have to be renegotiated.
So this could just have huge implications for Qualcomm and how they run their business.
Do you think that ultimately devices that consumers they paying for, will those prices come down because of something like this?
There's no way,yeah.
I mean, we basically set out in these trials that Apple Under the previous deal, I was paying Qualcomm $7.00 per iPhone.
There is no way that Apple's gonna shave off $3.00 off each iPhone becuase of this.
And Apple just reached a deal with Qualcomm last month.
So I mean, and we're just seeing prices go up across the board so there's no way this is actually going to have any sort of impact for a consumer, which is too bad because that is one of the things that the judge said is that this ultimately hurt consumers and cause higher phone prices.
But we're stuck with those prices.
It's not even going to change it for the people its supposed to help.