American chip manufacturer Qualcomm is getting $4.5 billion to $4.7 billion from Apple for unpaid licenses.
Apple and Qualcomm have stopped all lawsuits worldwide and have reached an agreement. For years, the companies were at loggerheads over the use of patents. Apple previously did not want to comment on the height of the settlement. Qualcomm did, however, make its quarterly figures public.
Apple accused Qualcomm of abusing it of abusing its dominant position in the mobile chips market and therefore suspended payments to the company. The companies reached an agreement two weeks ago to settle the issue. In addition to the one-off payment of billions, a multi-year user agreement was signed for Qualcomm’s technology.
The American chip giant achieved a turnover of 5 billion dollars in the past quarter, a decrease of 5 percent compared to the previous year. Net profit doubled to 330 million dollars.
Qualcomm expects sales of 4.7 billion to 5.5 billion dollars in the next quarter. Approximately $1.23 billion of that will come from patent licenses, including those of Apple.
It is not yet clear how much Apple will pay in running costs for the use of Qualcomms technology in future iPhones and iPads. The first Qualcomm chips may turn up in Apple hardware this fall.
Source: BelgaThis news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.