Published: Wed, April 17, 2019
Tech | By Constance Martin

Apple And Qualcomm End Global Court Battle And Are Best Buds Again

Apple And Qualcomm End Global Court Battle And Are Best Buds Again

In addition to paying for the chips, Apple was supposed to pay Qualcomm a licensing fee based on the chips' underlying patents.

"All litigation between the two companies worldwide" has been dropped, the firms said in a joint statement.

"Ultimately, Apple realized this was more about two kids fighting in the sandbox and they have bigger issues ahead with 5G and iPhone softness versus battling Qualcomm in court", Wedbush Securities analyst Daniel Ives wrote in Tuesday research note. The size of the payout has not been disclosed.

The agreement ends a multi-billion dollar legal battle over smartphone technology and will allow Apple to use Qualcomm's advanced chipsets.

Qualcomm also held another bargaining chip: It makes the modem chips needed for future smartphones to work with the next generation of high-speed wireless networks known as "5G". To settle their legal affairs, Apple will be making a one-time payment to Qualcomm, presumably to cover any IP use since Apple cut off payments to Qualcomm in 2017. Intel still believes that it can complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices. Apple stock was flat. Qualcomm stock has exploded upwards on this guidance, rising 20 percent.

"[It is] likely an acknowledgement by Apple that it had run out of options, particularly when it comes to 5G". Intel's chips aren't as fast as Qualcomm's and Intel is still some time away from having a 5G chipset ready for the market.

Well, that de-escalated quickly. The dispute stretched into courts on three continents.

Google removes TikTok from Play Store after Indian government and judiciary’s directive
Apple did not respond to requests for comment, while TikTok did not immediately respond to a request for comment on Google's move. Whereas, Google's Play Store instantly blocked the downloads in India after receiving a request from the concerned Ministry.

At one point, the dispute looked like a boon for Intel.

Qualcomm simply must retain its relationship with the world's most valuable smartphone maker.

But, even though the party is smaller, it's not yet over: Apple did $52 billion in iPhone sales in the last quarter of 2018, a number that only seems small when you compare it to the same quarter a year earlier ($61 billion). Intel, a Qualcomm competitor, sharply dipped on the news before recovering.

FILE PHOTO: An employee of German Apple retailer Gravis displays an iPhone 7 and 8 in a store in Berlin, Germany, January 3, 2019.

The last-minute settlement cut short a courtroom clash between the tech giants just as it was getting underway in California.

Qualcomm has an extensive patent portfolio covering numerous technologies used in smartphones and derives a significant amount of its annual revenue through licence payments from phone makers. It was just hard to anticipate the modem swap.

Like this: