Apple’s $1 Billion Baseband Deal

From EETimes: Qualcomm paid Apple $1 billion in a three-year deal in 2011 to win its cellular modem business. Qualcomm CEO Steve Mollenkopf noted the eye-popping figure in testimony late Friday in an antitrust case that the U.S. Federal Trade Commission brought against the company.

The figure was one of just two bombshell numbers from the day’s testimony. Earlier in the day, the head of procurement at Apple described the deal as an effort to get Qualcomm handset royalties below $10 per iPhone.

Judge Lucy Koh challenged lawyers from Qualcomm about releasing the billion-dollar figure. Multiple parties in the case have peppered her bench with motions to redact figures from testimony.

“Are you doing this for the media because I’ve been sealing a lot of your royalty numbers” at the request of Qualcomm and third parties? Koh asked.

Qualcomm used its cross-examination of Mollenkopf late Friday as a chance to lay out pieces of its case. He said that the chip vendor has never cut off supply to a handset maker to enforce a patent licensing deal despite testimony from a handful of OEMs about receiving such threats.

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