Compal, Hon Hai Precision/Foxconn, Pegatron, and Wistron have filed a countersuit against iPhone LTE modem supplier Qualcomm in an attempt to prevent Qualcomm from successfully forcing them to pay certain licensing fees related to the iPhone's assembly (via Bloomberg). The move is a response to a lawsuit from May when Qualcomm sued the four suppliers for "breaching their license agreements" by failing to pay royalties on the use of Qualcomm's technology in the assembly of Apple's devices.

Now, in a court filing today, the four companies have claimed that Qualcomm is asking for payments "massively in excess" of what it would normally receive. If the countersuit is successful, Apple said that it could cost Qualcomm billions in refunded fees and damages. For the manufacturers' part, the companies described the Qualcomm suit as "yet another...anticompetitive scheme" by Qualcomm.

qualcomm iphone
According to The Wall Street Journal, Apple is said to be covering the legal fees associated with the four manufacturers' defense, and that it would soon file a separate motion to combine the new countersuit with its own suit against Qualcomm, creating one unified case.

Apple’s key contention is that Qualcomm is asking the court to force the contract manufacturers to pay licensing fees due on iPhones above the level the chipmaker normally receives.

The manufacturers -- Compal, Hon Hai Precision and its Foxconn subsidiary, Pegatron Corp., and Wistron Corp. -- denied violating any payment agreements. They called the Qualcomm suit against them “yet another chapter of Qualcomm’s anticompetitive scheme to dominate modem chip markets, extract supracompetitive royalties, and break its commitments to license its cellular technology on fair, reasonable and non-discriminatory terms.”

Apple and its manufacturing partners have also responded to a separate Qualcomm court filing, in which the LTE modem supplier requested an injunction to force Apple's iPhone manufacturers to keep paying royalties during the legal battle. Apple, Compal, Foxconn, Pegatron, and Wistron have objected to the request, stating that "there's no harm to Qualcomm waiting to get paid" until the end of the case, when the court determines the correct amount.

Earlier this week, Qualcomm CEO Steve Mollenkopf said that an out of court settlement for the case could still happen, although he had no specific confirmation or update on the legal battle that suggested a settlement was coming between Qualcomm and Apple. The two companies have been embroiled in the court case since January, sparked by an FTC complaint about Qualcomm's anticompetitive patent licensing practices, and continued with Apple's own lawsuit against the supplier, and then Qualcomm's countersuit response.

If there is no settlement between Apple and Qualcomm, the case is expected to continue for the next few years.

Top Rated Comments

morcutt11 Avatar
112 months ago
Lets not forget Samsung, Intel, and the US FTC have also filed suit earlier this year against Qualcomm. It seems universally agreed that Qualcomm has essentially been extorting technology manufactures and hampering innovation with anti-competitive practices. At this point it looks like Qualcomm v. The World. I don't predict Qualcomm to be a winner in that battle.
Score: 14 Votes (Like | Disagree)
morcutt11 Avatar
112 months ago
Is Qualcomm the real threat here? Everyone is attacking Qualcomm, but who copies and steals the most?!
Oh it's Qualcomm. Let's take a look at what they are doing:
1) They charge licensing fees for patented technology not only from people that make a competing chip (e.g. Intel), but also companies that use those chips (e.g. Apple) in devices.
2) The fee that they charge for someone using a chip (even competing chip) that uses Qualcomm's patented technology is based on the price the device sells for. So Apple pays pays $15/iPhone for the entry-level iPhone, but more for iPhones that sell at higher rates due to more RAM/storage. Remember, this is the case even if Apple isn't using Qualcomm chips.
3) Because of this licensing scheme, it makes it difficult for other chip manufacturers to compete against Qualcomm, hence the US FTC anti-trust lawsuit. The FTC has said that Qualcomm is effectively taxing every cell phone sold.
4) There is also issues with Qualcomm refusing to license its technology to other chip manufacturers, promoting an anti-competitive market.
5) Along the anti-competitive line, Qualcomm has also successfully prevented Apple from implementing technology like WiMAX because it competes with Qualcomm technology.

In the end it will be a court(s) deciding if Qualcomm's technology patents fall under the "fair, reasonable, and non-discriminatory" requirements, which other manufacturers are claiming they do as the patents reflect technology that is part of the standards of mobile carrier services.
Score: 6 Votes (Like | Disagree)
Cronowerx Avatar
112 months ago
This will not end well for Qualcomm. They better settle out of court ASAP ;)

One of the big advantages of having your partners dependent on you means that your enemies are their enemies.
Score: 3 Votes (Like | Disagree)
blcamp Avatar
112 months ago
Game over, QCOM. Have a nice day.
Score: 3 Votes (Like | Disagree)
Kaibelf Avatar
112 months ago
Contract manufacturers.
Any competent judge will see through the case stacking with Apple footing the legal fees for all parties.
Doesn’t matter. Qualcomm opened the door to this very thing the minute they tried to sue the suppliers when Apple fought back. Now they will take it in the chin and likely end up paying a lot more in the end.
Score: 3 Votes (Like | Disagree)
joelypolly Avatar
112 months ago
Is Qualcomm the real threat here? Everyone is attacking Qualcomm, but who copies and steals the most?!
Well considering everyone is sueing Qualcomm they do appear to be the problem here. Lets not confuse anticompetitive behavior with something completely unrelated.
Score: 3 Votes (Like | Disagree)

Popular Stories

iOS 26

iOS 26.3 and iOS 26.4 Will Add These New Features to Your iPhone

Tuesday February 3, 2026 7:47 am PST by
We are still waiting for the iOS 26.3 Release Candidate to come out, so the first iOS 26.4 beta is likely still at least a week or two away. Following beta testing, iOS 26.4 will likely be released to the general public in March or April. Below, we have recapped known or rumored iOS 26.3 and iOS 26.4 features so far. iOS 26.3 iPhone to Android Transfer Tool iOS 26.3 makes it easier...
Apple Logo Black

Apple's Next Launch is 'Imminent'

Sunday February 1, 2026 12:31 pm PST by
The calendar has turned to February, and a new report indicates that Apple's next product launch is "imminent," in the form of new MacBook Pro models. "All signs point to an imminent launch of next-generation MacBook Pros that retain the current form factor but deliver faster chips," Bloomberg's Mark Gurman said on Sunday. "I'm told the new models — code-named J714 and J716 — are slated...
iOS 26 Home Feature

Apple Gives Final Warning to Home App Users

Tuesday February 3, 2026 8:55 am PST by
In 2022, Apple introduced a new Apple Home architecture that is "more reliable and efficient," and the deadline to upgrade and avoid issues is fast approaching. In an email this week, Apple gave customers a final reminder to upgrade their Home app by February 10, 2026. Apple says users who do not upgrade may experience issues with accessories and automations, or lose access to their smart...
Aston Martin CarPlay Ultra Screen

Apple's CarPlay Ultra to Expand to These Vehicle Brands Later This Year

Sunday February 1, 2026 10:08 am PST by
Last year, Apple launched CarPlay Ultra, the long-awaited next-generation version of its CarPlay software system for vehicles. Nearly nine months later, CarPlay Ultra is still limited to Aston Martin's latest luxury vehicles, but that should change fairly soon. In May 2025, Apple said many other vehicle brands planned to offer CarPlay Ultra, including Hyundai, Kia, and Genesis. In his Powe...
Apple Foldable Thumb

First Foldable iPhone Design Details Revealed

Monday February 2, 2026 7:19 am PST by
Apple's first foldable iPhone will feature relocated volume buttons, an all-black camera plateau, a smaller Dynamic Island, and more, according to design leaks from a known Weibo leaker. The user known as "Instant Digital" today claimed to share several key details about the design of the foldable iPhone: The volume buttons will be located on the top edge of the device, aligned to the...