The iPhone Xs. Could an Apple regulation with Qualcomm lead to an iPhone 5G? (Photo: Apple Inc.)

Apple and Qualcomm have settled their patent and royalty disputes, helping to pave the way for the first 5G-compatible iPhone this year, though 2020 looks even more likely.

In a vague press release, Apple and Qualcomm announced that they had agreed to terminate any litigation, including with Apple's subcontractors. Apple will also make an undisclosed payment to Qualcomm. The companies have a six-year licensing agreement, effective April 1, 2019, including a two-year extension option and a multi-year multi-year chipset supply agreement.

The settlement comes as the two companies face each other again in a courtroom in San Diego.

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"Even though a standard Qualcomm 5G modem is capable of entering a 2019 iPhone, it is more likely that Apple is adding its own custom features to a Qualcomm 5G modem for an iPhone 2020," says analyst Tim Bajarin. at Creative Strategies. observer.

"For consumers, it's important," added Bajarin. "Apple can remain competitive and offer its customers a 5G experience by 2020 at the latest. It also means that Qualcomm and Apple can be more aggressive in helping to boost 5G innovation during the new decade."

In a recent interview with USA TODAY before Tuesday's settlement, Qualcomm President Cristiano Amon hinted that peace could be established, particularly given Qualcomm's work with 5G.

"If companies want to be a leader in mobile, especially those who have become the leading companies," said Amon, referring to Apple, they must work with leaders. "

"So, if we become a 5G leader and consumers need 5G, I think companies that want to be leaders will work with us."

Samsung and LG have already announced that they would use Qualcomm chips in their next respective phones, the Galaxy S10 5G and the V50 ThinQ 5G. OnePlus will do the same, stating previously that it will have a Qualcomm chip in its first 5G phone.

The epic legal battle that began in January 2017, Apple sued Qualcomm for a billion dollars, accusing the provider of overloading its wireless chips and engaging in monopolistic tactics. Qualcomm then claimed that Apple had infringed its patents.

The settlement could be bad news for Intel, whose chips are in the latest iPhones. According to some information, Intel's 5G chips could be delayed, which could delay the introduction of an iPhone 5G.

Qualcomm shares jumped more than 23% on news. Intel's shares rose by less than 1%, while Apple's shares remained stable.

Contribute: Eli Blumenthal

Email: [email protected]; Follow @edbaig on Twitter

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