INTERNATIONAL - Sales of LG Electronics Inc’s new 5G smartphone looked uncertain on Wednesday after the firm said it was unable to narrow differences with Qualcomm Inc to renew a chip license deal that is due to expire this month.
In a US court filing late on Tuesday, the South Korean firm opposed Qualcomm’s efforts to put a sweeping U.S. antitrust decision against it on hold, arguing setting the ruling aside could force it into signing another unfair deal.
“If Qualcomm does not participate in negotiations with LGE in accordance with the Court’s Order, LGE will have no option but to conclude license and chipset supply agreements once again on Qualcomm’s terms,” LG’s filing in the federal court in San Jose, California said.
The lack of clarity over a new license deal raises concerns over the rollout of LG’s newly launched 5G smartphones, crucial for the loss-making handset maker to boost flagging smartphone sales and catch up with Samsung Electronics Co Ltd.
“If LG Electronics fails to renew its contract with Qualcomm, it is very likely that it will not be able to make any phones since LG does not manufacture chips by itself,” BNK Securities analyst Park Sung-soon said.