About two weeks ago, Qualcomm and Apple announced the dramatic turnaround of the “never-ending” legal battle between both companies. The two sides will cancel dozens of patent lawsuits on each other globally. Although both companies seem to be satisfied with the agreement, Apple paid a lot of money to Qualcomm. Some analysts have expected that Apple will pay Qualcomm $50-60 billion, and each iPhone will pay an authorization fee of $8-9, higher than the previous $7.5 US dollars.
Gizchina News of the week
After the release of the latest financial report, Qualcomm disclosed some details of the settlement with Apple for the first time. Qualcomm mentioned Apple’s one-time payment of Qualcomm’s royalties, the signed six-year license agreement, and the chip agreement. Qualcomm said it expects to receive a $4.5-4.7 billion patent fee from the settlement with the American phone maker.
Qualcomm CEO Steve Mollenkopf declined to disclose the exact details of the settlement, but said: “Well, transactions like this have extremely high value, so it’s best to keep it secret.” Of course, billions of dollars are drizzling for Apple, after all, the total value of cash and securities in hand exceeds $225 billion. Since the settlement, Qualcomm’s share price has risen by 43%, and Apple’s has also risen by more than 5%.
