Broadcom’s acquisition of its chip rival Qualcomm could play a major role in easing up tensions between Apple and Qualcomm. Broadcom’s cordial relationship with Apple would play an essential role in reducing tensions between the two gaints.
Apple and Qualcomm have been involved in a patent lawsuit. Both the parties have been suing each other for their own charges. Apple filed a lawsuit for fraudulent royalty charges, however, Qualcomm filed for patent infringement.
Chris Caso of Raymond James Equity Research opined that Qualcomm is disputing in court to raise its value of IP. However, the acquirer only needs to settle for the rate that would offer a positive ROI.
Tim Cook, CEO of Apple commented on the ongoing lawsuit against Qualcomm and provided the company’s stance on the matter. He said, “The Taiwan Justice Department has found Qualcomm guilty, and imposed a hefty fine. The U.S. FTC sued them and has an ongoing suit. The EU during its investigation has stated, “I think it’s pretty clear that there are problems there.”
Broadcom is one of the major component suppliers of the Cupertino-based tech giant. Its partnership would play a crucial role to reduce hostility between Apple and Qualcomm. Moreover, Broadcom would efficiently ease up tensions between them more efficiently.
Anil Doradla of William Blair & Co. stated that the Broadcom-Qualcomm deal could be the beginning of a new environment. Though many litigation issues have been solved, there are many in the queue.
The Broadcom-Qualcomm deal would also help the industry at large by reducing tensions between Apple and Qualcomm.