FILE PHOTO: A woman checks her phone at a flagship Apple store in Iconsiam shopping mall in Bangkok, Thailand, November 9, 2018. REUTERS/Soe Zeya Tun
(Reuters) – Apple Inc asked for $1 billion as “incentive payment” from Qualcomm Inc to Qualcomm to be the supplier of modem chips for the iPhone from Apple, Qualcomm’s chief executive testified on Friday at a trial with the U.S. antitrust regulators.
The $1 billion payment as part of the 2011 deal between Apple and Qualcomm, was intended for the convenience of the technical costs of the swap of the iPhone than the current chip from Qualcomm.
But Qualcomm CEO Steve Mollenkopf testified during a trial with the U.S. Federal Trade Commission that the considerable payment is part of the reason why Qualcomm wanted to be, the sole supplier of Apple’s so-called modem chips.
Reporting by Stephen Nellis; Editing by Sandra Maler