2017.07.1921:28:00UTC+00Qualcomm Profit Guidance Hit by Apple Scuffle

Qualcomm Inc. projected a steep drop in profit and licensing sales for the fourth as the firm's patent battle with tech giant Apple Inc. continues to affect its licensing unit.

The world's biggest chipmaker sees profit falling by as much as 47 percent in the current period to clock in as little as $1 billion. This is seen to weigh on overall revenue by as much as 13 percent during the period, which will end on September. The issued guidance did not include patent fees associated to products from Apple and other client whose contract is under scrutiny.

Shares of the company traded down 2.3 percent at $55.40 in late hours trading.

The company also posted a sharp drop in third-quarter profit as Apple's contract manufacturers withheld royalties that were supposed to pay Qualcomm.

Adjusted profit is seen to be at 75 cents to 85 cents per share, while it estimated revenue of $5.4 billion to $6.2 billion for the current current.

The iPhone maker filed a legal action against Qualcomm earlier this year, alleging it of overcharging chips and has called for its contract manufacturers to postpone paying licensing to the company while the dispute was in development.