“Despite the parties’ efforts to keep the terms of the deal confidential, the impact on Qualcomm’s financials is more than big enough that the patent licensing and chipset company had to say something in its earnings report for its second fiscal quarter of 2019, which also contains guidance on the third quarter and beyond,” Mueller writes. “So we know now that the one-time payment is in the range from $4.5 billion to $4.7 billion.”
“Instead of interest (or: interest on interest) on top of the $7 billion or more in previously-unpaid patent royalties, Qualcomm apparently had to discount its claim by several billion dollars in order to reach an agreement with Apple. The $4.5 billion to $4.7 billion amount of Apple’s one-time payment is clearly a lot less than the royalties Qualcomm would have received if Apple, through its contract manufacturers, had made payments in accordance with the earlier agreement,” Mueller writes. “What we don’t know, of course, is whether Apple in exchange made some concessions with respect to ongoing royalties.”
Read more in the full article here.
MacDailyNews Take: Meanwhile, Apple’s work on their own 5G modem chipsets continues with a nice cushion of time to get everyone and everything in place, ready to go!
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Intel admits Apple-Qualcomm settlement led to it dropping 5G modem – April 26, 2019
Winners and Losers of the Apple-Qualcomm detente – April 19, 2019
Why Intel’s smartphone strategy went off the rails yet again – April 19, 2019
Why did Intel kill off their modem program? – April 18, 2019
Here’s what likely happened between Apple, Qualcomm and Intel – April 17, 2019
Intel axes 5G modem plans after Apple and Qualcomm settle – April 17, 2019
After settlement with Apple, Qualcomm still faces other potential legal fallout – April 16, 2019
Qualcomm and Apple settle, agree to drop all litigation – April 16, 2019