5G iPhone includes Qualcomm, Samsung - Kuo

Joanna Estrada
April 23, 2019

"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 multiyear chipset supply agreement", Apple said in a press release.

But now, after some bitter times, both the companies resolved the issue with Apple paying around $5-6billion to Qualcomm and agreements for using their chips for future years (analysts estimates).

Though the deal brings make a full-stop to stormy 2-year stretch for Qualcomm as well as it is considered as a huge victory against Apple.

Qualcomm Inc.'s fortune seemed to be feathered up, as Apple's sole iPhone chip supplier for past few years, Intel Corp., had made a decision to evade its modem chips business following Apple's settlement with Qualcomm Inc.

Apple's original plan was to continue dual-sourcing for its modems from Intel and Qualcomm.

Shares in Qualcomm surged 23% after the announcement, while Apple's remained flat on Tuesday.

Apple reportedly paid a high price to end a little legal battle that threatened it's ability to release a 5G iPhone.

Apple's CEO has also voiced his opinion on the matter saying that Qualcomm has an obligation to offer their patent on the fair and non-discriminatory basis but they don't do that. A new trial will start soon in San Diego with Apple and its contract manufacturers seeking billions of dollars from the chip maker.

At the moment, there are only five modem chip suppliers in the world, namely Qualcomm, Samsung Electronics, MediaTek, HiSilicon and Unisoc.

Wall Street analysts believed the settlement would help Qualcomm strengthen its position in 5G network and expand revenue accordingly.

Closing the week at 79.89 US dollars per share, Qualcomm has exceeded 96 billion dollars in market cap, increasing about 27 billion dollars after the settlement was announced.

Apple said it sold over 217 million iPhones in its fiscal 2018, the previous year that figures are available.

Other reports by Click Lancashire

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