Apple demanded $1 billion from Qualcomm for chance to win iPhone

Technology

FILE PHOTO: A woman checks her phone at a flagship Apple store at Iconsiam shopping mall in Bangkok, Thailand November 9, 2018. REUTERS/Soe Zeya Tun

(Reuters) – Apple Inc asked for $1 billion as an “incentive payment” from Qualcomm Inc in order for Qualcomm to become the supplier of modem chips for Apple’s iPhone, Qualcomm’s chief executive testified on Friday at a trial with U.S. antitrust regulators.

The $1 billion payment as part of a 2011 deal between Apple and Qualcomm was meant to ease the technical costs of swapping out the iPhone’s then-current chip with Qualcomm’s.

But Qualcomm CEO Steve Mollenkopf testified at a trial with the U.S. Federal Trade Commission that the hefty payment was part of why Qualcomm sought to become the sole supplier of Apple’s so-called modem chips.

Reporting by Stephen Nellis; Editing by Sandra Maler

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