Qualcomm’s reputation is on the line as a judge has refused to dismiss a patent infringement lawsuit against the company. Collabo Innovations Inc. alleges that Qualcomm infringed on a patent related to a microcontroller chip that manages system shutdown processes, which was acquired from Panasonic. The lawsuit could lead to Qualcomm having to change its chip manufacturing processes if the ruling is not in their favor. This legal battle could potentially result in Qualcomm paying substantial damages or even being forced to stop using the microcontroller chip in their Snapdragon processors altogether.
In addition to this legal challenge, Qualcomm is facing setbacks as both Samsung and Apple are looking to move away from using Qualcomm chips in their devices. This shift in partnerships could significantly impact Qualcomm’s revenue streams. The company is also expected to see a decrease in their share of the iPhone 17 series, as revealed by Qualcomm's CFO Akash Palkhiwala.
