Qualcomm Earnings Report Will Shed More Light on Royalty Damage

Qualcomm Earnings Report Will Shed More Light on Royalty Damage

Qualcomm (NASDAQ: QCOM) is in a tough situation going into the release of its fiscal fourth-quarter earnings report, set for after the market closes on Nov. 1. The chipmaker's business has been hurt by its royalty dispute with Apple (NASDAQ: AAPL), which has dented the lucrative licensing business that supplies the lion's share of its earnings before taxes (EBT).

The problem for Qualcomm is that the Apple feud has taken a turn for the worse. Cupertino has been allowed to pursue lawsuits in 11 foreign jurisdictions against Qualcomm's licensing structure, and the latter has retaliated by trying to get a ban on iPhone sales in China. This protracted battle could hinder Qualcomm's chances of getting back on track.

Image source: Qualcomm.

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Source: Fool.com