Qualcomm forecasts lower profit amid Apple fight

Chip maker Qualcomm Inc has forecast a fourth-quarter profit that is below analysts’ estimates as its patent battle with Apple Inc continues to take a toll on its licensing business, Reuters reported.

Qualcomm shares were trading lower after the news.

Qualcomm also reported a fall in third-quarter profit as Apple’s contract manufacturers withheld royalties that they were expected to pay to Qualcomm.

Apple sued Qualcomm earlier this year, accusing it of overcharging for chips, and asked its contract manufacturers to withhold license payments while the patent dispute continued.

“We believe that we hold the high ground with regard to the dispute with Apple,” Qualcomm chief executive Steve Mollenkopf said in a statement.

Qualcomm forecast adjusted profit of 75 cents to 85 cents per share and revenue of $5.4 billion to $6.2 billion for the current quarter.

Analysts were expecting an adjusted profit of 90 cents per share and revenue of $5.48 billion, according to Thomson Reuters I/B/E/S.