Some analysts have expressed concern that tech giant Qualcomm may be in serious financial trouble due to its ongoing licensing disputes with Apple Inc.

Qualcomm’s ongoing dispute with Apple surrounds the iPhone-manufacturer’s refusal to pay royalties to the chip maker on certain technologies that Apple chief executive Tim Cook says that the chip maker has nothing to do with.

In January this year, Apple filed a lawsuit against Qualcomm for $1 billion. Several Taiwanese contract manufacturers like Foxconn have also reportedly filed a suit against the chip maker in U.S. federal district court.

Bernstein Research’s senior analyst Stacy Rasgon said, “Given the escalation here, given everything else that’s been going on, how do we gain conviction that we don’t see further contagion or further spreading to other customers given that this seems to be bleeding out?”

According to Qualcomm’s latest Q3 earnings report, the chip maker’s profits and revenues continue to decline. In the latest quarter, the company’s year-over-year profits declined 40 per cent, with net income dropping from $1.44 billion in 2016 to $866 million.