Apple paid $6 billion to settle Qualcomm dispute: Report
Apple could have paid chip-maker Qualcomm someplace between $5 billion-$6 billion for an settlement to dismiss all ongoing litigation, together with with Apple’s contract producers, between the 2 corporations worldwide.
According to a CNBC report citing an estimate from monetary companies agency UBS on Thursday, Apple in all probability agreed to pay between $eight and $9 in patent royalties per iPhone.
“The UBS estimate suggests that Apple paid a high price to end a bitter legal battle that spanned multiple continents and threatened Apple’s ability to release a 5G iPhone,” the report famous.
Apple and Qualcomm didn’t touch upon the event.
The take care of Qualcomm would put Apple on a quicker path to 5G for iPhones.
“The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multi-year chipset supply agreement,” mentioned the Cupertino-based iPhone maker.
The Apple-Qualcomm settlement was reached as chip-maker Intel determined to exit the 5G smartphone modem enterprise and full an evaluation of the alternatives for 4G and 5G modems in PCs, Internet of Things gadgets and different data-centric gadgets.
“It’s likely Intel’s decision prompted Apple and Qualcomm’s decision to settle — which came as quite a surprise since it happened just as lawyers were presenting opening arguments at the latest courtroom trial,” The Verge reported.
Apple and Qualcomm have been combating over patent licensing practices for the final two years.