Qualcomm 'pressed to accept lower royalties'

China wants Qualcomm Inc to accept lower royalty payments for technology used by domestic smartphone manufacturers, people familiar with the matter said, in a proposal that would hurt the chipmaker's main source of profit. An agreement would end a 13-month anti-monopoly probe by the Chinese government.

Negotiations with the National Development and Reform Commission are continuing, with last-minute changes still possible, the people said, asking not to be identified because the matter is private. The government also may require the United States-based company to unbundle its licensing agreements, the people said.

The potential concessions show the high price that Qualcomm may have to pay for access to the biggest smartphone market, where sales have already been hurt by the probe as some device producers avoid paying licensing fees.