Qualcomm Loses Motorola 3G Chipset Business

Another blow was dealt to chipmaker Qualcomm today, as Motorola announced plans to move away from Qualcomm 3G chipsets, choosing instead to purchase the chips from Texas Instruments and Freescale Semiconductor. The move comes at a time when Qualcomm is facing a mounting level of legal battles over patent infringements.

{mosgoogle left}Less than a month after Nokia Inc. filed suit over patent infringements, Qualcomm Inc. was told that the Motorola decision was not based on technology issues, but rather a change in the organizations business model.

Qualcomm is currently facing legal battles which include the ITC 3G chip ban, and litigation from Nokia.

Recent reports have stated that Motorola has already begun to move resources away from the Qualcomm chipsets.

The announcement may have come in turn because Texas Instruments was released as the sole provider of chipsets for handset manufacturer Nokia Inc. Allowing Motorola to gain a more positive business relationship in the meantime.

The loss of business is expected to cost Qualcomm nearly $700 million dollars in revenue on approximently 35 million handsets.

Read More