Apple demanded $1 billion from Qualcomm for chance to win iPhone

Updated: Sat, Jan 12, 2019
06:30 am
Reuters
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Apple Inc asked for $1 billion as an "incentive payment" from Qualcomm Inc in order for Qualcomm to become the supplier of modem chips for Apple`s iPhone, Qualcomm`s chief executive testified on Friday at a trial with U.S. antitrust regulators.

The $1 billion payment as part of a 2011 deal between Apple and Qualcomm was meant to ease the technical costs of swapping out the iPhone`s then-current chip with Qualcomm`s.

But Qualcomm CEO Steve Mollenkopf testified at a trial with the U.S. Federal Trade Commission that the hefty payment was part of why Qualcomm sought to become the sole supplier of Apple`s so-called modem chips.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)