Qualcomm to continue chip supply to Apple despite $1bn suit

Although Apple Inc has recently sued chipmaker Qualcomm for almost $1 billion, this will not stop Qualcomm from continuing to supply chips for the iPhone, according to a report on technology website Recode.

Qualcomm thinks that this is just a small issue in the contract, which Apple is making into a regulatory problem, the report says. Qualcomm is a big supplier to Apple as well as Samsung, providing them with chips which help smartphones connect to Wi-Fi.

Qualcomm's revenue last year was $23.5 billion, of which these two companies accounted for almost 40 per cent, according to Reuters.

Apple has accused the company of overcharging for its chips and not paying around $1 billion in rebates, which is the primary reason for Apple's discussion with South Korea's antitrust regulator, the Korea Fair Trade Commission. (See: Apple accuses Qualcomm of unfair practices, files $1bn suit).

According to Recode, sources have said that Qualcomm is trying to get the Apple case dismissed, but also might file a lawsuit itself in response - but all this will not affect its supplying of modem chips for the iPhone.

Qualcomm is still a leader in its market and does not want rivals to take over, especially since Apple started using modem chips from Intel for its iPhone 7, though only for selected devices.

Qualcomm is also facing another lawsuit, from the Federal Trade Commission, which has accused the company of illegally tying up chip sales to patent licensing (Qualcomm used anticompetitive tactics to maintain monopoly over semiconductor supply)