Let me explain.
The Dispute In A Nutshell
Qualcomm controls most of the patents that surround the Smartphone, in fact were in not for Qualcomm, we’d likely be still using flip phones (which for a lot of folks who appear to have att
ention issues and tend to walk or drive into things while staring lovingly at their Smartphone might be a good thing). To get access to these patents Qualcomm requires a licensing fee which covers the cost of their development and provides a relatively modest profit given Qualcomm’s level of control. Apple doesn’t want to pay the Qualcomm price even though their margins are the strongest in the industry and their related valuation has often been higher than any other company in any industry. In effect, Apple is rolling in money but instead of focusing on building better products has flipped to a strategy of pounding on suppliers. (Tim Cook’s background is in supply chain, not creating products, so he is doing what he knows which shouldn’t surprise anyone).
