Qualcomm scores US$4.5B from Apple in settlement leaving no doubt who won
In one of the biggest tech heavy weight square-offs in recent times, Apple and Qualcomm have been locked in a global legal patent dispute that was recently settled. The news of the settlement also saw the almost immediate exit of Intel from the 5G smartphone modem market now putting that part of its business up for sale. At the time of the settlement, Qualcomm and Apple confirmed that the deal reached would include a one-time license payment to Apple however the exact amount remained secret until now.
During its conference call yesterday, Qualcomm revealed that it will receive a whopping payment of between US$4.5 to $4.7 billion dollars from Apple as a result of its lawsuit against the iPhone maker. Not only that, but the company will now also generate substantial ongoing licensing revenue from Apple for its next-generation 5G smartphone modems. Until the deal was struck, Apple had considered making its own 5G modems as well as partnering with Intel for access to its technology.
In the end, Apple probably wisely concluded that Qualcomm’s tech is superior and will ensure that Apple isn’t critically late to launch a 5G-capable smartphone. Both Huawei and Samsung will have had a 5G smartphone on the market for at least 12-18 months before Apple. As it is, its iPhone sales are currently in decline and, along with Samsung, is struggling to hold of competition from Huawei. The deal with Qualcomm will mean it should be in a position to launch a 5G iPhone in line with more widespread carrier coverage.
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