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Qualcomm expects additional earnings per share of US $ 2 as product shipments increase, the company said.
The two companies began a lawsuit in San Diego on Monday in a federal court, which was to last until May. Both sides claimed billions of damages. The antitrust case was originally filed by Apple in early 2017.
The complex legal battle, centered on modem chips and related disputes, has raged in courts around the world for two years, including in a previous trial between Qualcomm and the US Federal Trade Commission.
For years, Apple bought modem chips from Qualcomm, but it bowed to Qualcomm's prices and demanded that any company using its chips also pay license fees for its patents.
Apple argued that Qualcomm was abusing its position as one of the only providers of cellular technology, and Qualcomm claimed that Apple was withholding payments that the two companies had negotiated under a royalty agreement.
According to Qualcomm, the new license between the two companies is six years, with an option of two years extension. It includes a one-time payment from Apple to Qualcomm. The amount of the payment has not been disclosed.
In November, Qualcomm's general manager, Steve Mollenkopf, said he thought the two companies were about to "settle in." Apple's chief executive, Tim Cook, denied it shortly thereafter, claiming that Apple had not engaged in settlement discussions since the third calendar quarter of 2018.
The new models of iPhone marketed in 2018 used Intel modem chips instead of Qualcomm technology.
Analysts had previously said that the dispute between Qualcomm and Apple could slow down Apple's plans for support for next-generation 5G networks. Qualcomm is one of the leading chip providers that can connect to 5G networks. This agreement opens the possibility for Apple to market an iPhone 5G faster than expected with Qualcomm's modem technology.
Here is the full press release:
Qualcomm and Apple® announced today the signing of an agreement for the resolution of all disputes between the two companies in the world. The settlement includes a payment from Apple to Qualcomm. The companies also entered into a six-year license agreement, effective April 1, 2019, including a two-year extension option and a multi-year chipset procurement agreement.
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