• Saturday, September 07, 2019

Qualcomm and Apple reach an agreement

Apple and Qualcomm have settled all their legal disputes on Tuesday. The two companies have released a joint press release detailing their agreement. It the settlement it was agreed that Apple pays Qualcomm an undisclosed amount. Also, the companies have entered a six-year license agreement effective as of April 1, 2019, extendable by up to two additional years. The two also entered a multi-year chipset supply agreement.

Rumors have already started pointing towards 2020 iPhone having Qualcomm modems built in. It is still left to be seen how things will develop since Apple was fixed on using Intel modems exclusively. As Apple is now on its way to developing and manufacturing its own chipsets, it perhaps won’t rely on Qualcomm as much as it had in the past. While the companies can now work together, it doesn’t mean that it will rely entirely on Qualcomm like the majority of Android smartphone makers do.

This whole dispute started with Apple claiming the chipmaker was charging excessive royalties. Following this, Qualcomm sued Apple for infringing on other patents due to a power management feature embedded in the OS.  Eventually, Apple had to withdraw older iPhones from the shelves as they were banned in some regions. After a few years of quarreling, this past November Qualcomm CEO said that the companies were on the doorstep of a resolution. Almost two years after Qualcomm’s CEO said that Apple would settle – it did.

After the news of the settlement broke out, Qualcomm’s stock price shot up by 21% by the end of the day.