Qualcomm forecast fourth-quarter profit below analysts' estimates as the company's escalating patent battle with Apple continues.

The chipmaker also reported a fall in third-quarter profit as Apple's contract manufacturers withheld royalties that they were expected to pay to Qualcomm.

The iPhone maker sued Qualcomm earlier this year, accusing it of overcharging for chips, and had asked its contract manufacturers to withhold license payments from the company while the dispute played out.

"We believe that we hold the high ground with regard to the dispute with Apple," Qualcomm Chief Executive Steve Mollenkopf said in a statement.

Qualcomm forecast adjusted profit of 75 cents to 85 cents per share and revenue of $5.4 billion to 6.2 billion for the current quarter.

The company said the forecast excluded licensing revenue related to the sale of Apple products by contract manufacturers as well as the other unnamed licensee in dispute.

Demand from China led generally strong order for chips in the third quarter, which ended in June, Mollenkopf said in a phone interview following the report.

Revenue from its Qualcomm CDMA Technologies (QCT) unit, which includes its chip business, rose 5 percent to $4.05 billion. In contrast, revenue from its licensing business fell 42.5 percent to $1.17 billion.

Revenue fell 11.1 percent to $5.4 billion.