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

Reuters logo Reuters 12/01/2019

FILE PHOTO: People look at  iPhones at the World Trade Center Apple Store during a Black Friday sales event in Manhattan, New York City © Reuters/Andrew Kelly FILE PHOTO: People look at iPhones at the World Trade Center Apple Store during a Black Friday sales event in Manhattan, New York City (Reuters) - Apple Inc asked for $1 billion (£780m) 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. 

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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.

FILE PHOTO: A Qualcomm sign is seen during the China International Import Expo (CIIE), at the National Exhibition and Convention Center in Shanghai © Reuters/Aly Song FILE PHOTO: A Qualcomm sign is seen during the China International Import Expo (CIIE), at the National Exhibition and Convention Center in Shanghai

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.

(Reporting by Stephen Nellis; Editing by Sandra Maler)

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