Qualcomm Not Afraid Of Apple Despite Impending Sales Hit Over Legal Dispute

International mobile chip maker Qualcomm is currently going head-to-head with Apple in a legal battle that threatens to damage the former’s bottom line. Despite the potential hit to its sales, however, Qualcomm is not backing down.

Steve Mollenkopf, Qualcomm’s CEO recently told analyst during a conference call that Apple was essentially just being a cheapskate, CNET reports. He asserts that the iPhone maker was just trying to pay less for a technology that has allowed them to generate considerable profit over the years.

"Apple's complaint contains a lot of assertions, but in the end, this is a commercial dispute over the price of intellectual property," Mollenkopf said. "They want to pay less for the fair value that Qualcomm has established in the marketplace for our technology, even though Apple has generated billions in profits from using that technology."

The company’s licensing business head Derek Aberle also chimed in, saying that Apple’s case has no merit. In the end, it’s all about trying to make as much money as possible while making Qualcomm swallow the expenses.

Even with the legal dispute going on, however, Qualcomm is still supplying Apple with the chips that allow its iPhones and other mobile devices to run. This might be for the best since its sales numbers are expected to take a hit because of the development.

In a statement that the company released, Q2 profit is expected to sit at $6.3 billion at best. Bloomberg reports that this might not be the case as analysts are estimating that profit will likely be lower at about $5.9 billion.

The company’s stocks have also plummeted, with shares falling by 4.3 percent in the New York market. According to analysts, investors are currently having doubts about the profitability of Qualcomm’s business should Apple win the legal battle. If this happens, aside from paying the $1 billion rebates that Apple is asking for, royalties are also expected to drop.