Update: The WSJ reports that Apple is withholding licensing fees from Qualcomm pending resolution of the legal dispute between the two companies. A source estimates that Apple accounts for around 12% of the company’s total revenue. Qualcomm’s share price is down 19% so far this year.
We saw recently the impact on the share price of Imagination Technologies when Apple announced that it expected to stop using the company’s GPU tech within two years. The stock plummeted by 70%, reducing its market valuation by hundred of millions of dollars.
Not surprising when it turns out that royalty payments from Apple on the company’s chip designs forms almost half of the company’s income – and it is not the only company to be so heavily dependent on Apple’s business …
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