Patent dispute with Apple: Agreement brings billions to Qualcomm

After the end of the patent dispute between chip maker Qualcomm and Apple, the iPhone maker has to pay $ 4.7 billion. Despite the financial blessing, Qualcomm continues to struggle financially.

The agreement between Apple and the chip company Qualcomm in the current quarter amounts to 4.5 to 4.7 billion dollars. This is the first indication of the extent of Apple's payment following the settlement two weeks ago.

Qualcomm counted in the number, however, with also omitted the obligations towards Apple and the iPhone pavers. The dispute with Apple increased the financial costs of the chip production company: Qualcomm has received since 2017 more payments from manufacturers under contract iPhone, which resulted in a loss of revenue of $ 7 billion plus estimated interest.

Qualcomm still under pressure

The less the Apple comparison payment, Qualcomm expects a further decline in revenue for the current year. Apple is likely to reappear next year as a Qualcomm customer. Huawei Qualcomm, the world's second-largest smartphone maker, still does not have a permanent patent contract. Investors were not impressed by the outlook: the stock sometimes lost about 5% of its business after normal business hours.

The controversy came from Apple

Apple had started the quarrel with Qualcomm over two years ago and had accused the company, in a lawsuit, of demanding too high royalties for its patents and running a competition unfair. Qualcomm responded by alleging that in Apple devices, the invented technology was used without a patent license. Apple has been referring to modems for the latest iPhone models exclusively in the semiconductor giant Intel – which is leaving the trade after the settlement of patent litigation with smartphone chips. Qualcomm is first and foremost a leading provider of smart phone chips, with patent licensing being the second most lucrative pillar.