Monday, 22 April 2019

Apple settles dispute with Qualcomm paving the way for a 5G iPhone

Chris Kelly
Wednesday 17 April 19

Qualcomm’s share price reacted positively to the news of the settlement, rising to $70,.25 at the close of trading on Tuesday

Apple has settled its long running dispute with Qualcomm, agreeing to pay the US chip manufacturer a settlement for infringing its intellectual property.  Apple will now resume using Qualcomm&rsquo…

Apple has settled its long running dispute with Qualcomm, agreeing to pay the US chip manufacturer a settlement for infringing its intellectual property. 

Apple will now resume using Qualcomm’s chips in its flagship iPhone handsets, as part of a six year deal between the two firms. 

The pair have been involved in a series of tit-for-tat law suits around the world, which have coincided with a marked slump in Apple’s share of the smartphone handset market. 

“This is huge news for Qualcomm. Everything pointed towards it being dragged into lengthy litigation with Apple with little sign of a swift resolution,” said Geoff Blaber, vice president for research in the Americas, at CCS Insight.

“The multi-year deal is a huge vindication of the Qualcomm business model and suggests that Apple had run out of options for 5G modems. There was a growing body of evidence that Intel, its current chipset provider, was struggling to deliver a 5G solution in a timely manner.

“With the market for 5G accelerating, the need to guarantee a 5G iPhone in 2020 clearly proved a powerful motivator for a settlement. Commercial pragmatism ultimately won,” he added. 

Qualcomm’s share price jumped by 23 per cent upon news of the settlement as markets reacted positively to the announcement. 

Also in the news:

Apple fined $31m, as court finds in Qualcomm's favour

Qualcomm launches 7Gbps 5G chipset at MWC 2019

Apple sees 15 per cent drop in iPhone revenues

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