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After Apple cuts off payments, Qualcomm slashes expectations

FILE - In this Sept. 16, 2016 file photo, Lisa Gao compares a new jet black iPhone 7, right, with her iPhone 6 at the Apple Store in Chicago. Qualcomm says Apple’s refusal to pay royalties related to technology used in smartphones will take a big bite out of its profit and revenue. Apple Inc. has sued Qualcomm, saying the chipmaker is abusing its control over essential technology and charging excessive licensing fees. Qualcomm says Apple has indicated that it won’t pay fees until the dispute is resolved. Representatives for the Cupertino, California-based iPhone did not immediately respond to a request for comment Friday, April 28, 2017. (AP Photo/Kiichiro Sato)
FILE - In this Sept. 16, 2016 file photo, Lisa Gao compares a new jet black iPhone 7, right, with her iPhone 6 at the Apple Store in Chicago. Qualcomm says Apple’s refusal to pay royalties related to technology used in smartphones will take a big bite out of its profit and revenue. Apple Inc. has sued Qualcomm, saying the chipmaker is abusing its control over essential technology and charging excessive licensing fees. Qualcomm says Apple has indicated that it won’t pay fees until the dispute is resolved. Representatives for the Cupertino, California-based iPhone did not immediately respond to a request for comment Friday, April 28, 2017. (AP Photo/Kiichiro Sato) FILE - In this Sept. 16, 2016 file photo, Lisa Gao compares a new jet black iPhone 7, right, with her iPhone 6 at the Apple Store in Chicago. Qualcomm says Apple’s refusal to pay royalties related to technology used in smartphones will take a big bite out of its profit and revenue. Apple Inc. has sued Qualcomm, saying the chipmaker is abusing its control over essential technology and charging excessive licensing fees. Qualcomm says Apple has indicated that it won’t pay fees until the dispute is resolved. Representatives for the Cupertino, California-based iPhone did not immediately respond to a request for comment Friday, April 28, 2017. (AP Photo/Kiichiro Sato)

By Associated Press 1 min read

NEW YORK (AP) – Qualcomm is slashing its profit expectations after saying that Apple is now refusing to pay royalties on technology used in the iPhone.

Apple Inc. sued Qualcomm earlier this year, saying that the San Diego chipmaker has abused its control over essential technology and charged excessive licensing fees. Qualcomm said Friday that Apple now says it won’t pay Qualcomm any fees until the dispute is resolved. Apple did not immediately respond to a request for comment.

Qualcomm now expects earnings per share between 75 and 85 cents for the April to June quarter. Its previous forecast was for earnings per share between 90 cents and $1.15.

Shares of Qualcomm Inc. tumbled more than 3 percent before the opening bell Friday and appear headed for a new low for the year.