SEOUL (Reuters) - sales of LG Electronics Inc’s new 5G phone seemed unsure on Wednesday after the company stated it changed into not able to narrow differences with Qualcomm Inc to resume a chip license deal this is because of expire this month.

In a U.S.

. Courtroom filing past due on Tuesday, the South Korean firm adversarial Qualcomm’s efforts to place a sweeping U.S. Antitrust choice towards it on maintain, arguing putting the ruling aside could pressure it into signing another unfair deal.

“If Qualcomm does no longer participate in negotiations with LGE according with the court’s Order, LGE will have no choice but to conclude license and chipset deliver agreements all over again on Qualcomm’s terms,” LG’s submitting inside the federal courtroom in San Jose, California said.

The dearth of readability over a brand new license deal raises concerns over the rollout of LG’s newly launched 5G smartphones, vital for the loss-making handset maker to enhance flagging telephone sales and catch up with Samsung Electronics Co Ltd.

“If LG Electronics fails to resume its agreement with Qualcomm, it is very probably that it'll now not be capable of make any telephones when you consider that LG does now not manufacture chips by itself,” BNK Securities analyst Park Sung-soon stated.

“it'd do catastrophic damage to its mobile commercial enterprise.”

An LG spokeswoman stated she couldn't problematic on the ability impact as negotiations with Qualcomm have been in progress.

The firm released its first 5G telephone powered through Qualcomm inside the america in might also after debuting it in South Korea within the identical month.

LG is the 0.33-biggest cellphone seller in the U.S. Market with an eleven percent market percentage as of the first quarter of this year, and trails Apple Inc and Samsung, in step with marketplace researcher Counterpoint.

The company has been renegotiating a licensing address Qualcomm after terminating the existing agreement in 2018 to are searching for higher phrases with the chipmaker. But the two companies have did not reach a new deal and their meantime license agreement will stop this month.

Qualcomm in past due can also asked a U.S. Federal choose not to enforce her antitrust selection whilst it pursued an appeal. The company said the choose’s ruling could entail “noticeably restructuring its commercial enterprise courting” in methods that could be not possible to reverse if it gained an appeal.

LG said Qualcomm would be capable of amplify its chipset monopoly fame into the 5G marketplace if the court decided to place the antitrust ruling on hold.

“Staying the court’s Order as Qualcomm requests will reason LG Electronics irreparable harm in its negotiations with Qualcomm and that could in the long run impact the complete 5G marketplace,” LG said inside the submitting.