Qualcomm's stock continues to rise after Apple's settlement

Qualcomm stock has increased

Shares of Qualcomm (QCOM) jumped about 12.3% on April 17 to $ 79.08, as investors continued to celebrate the chip maker's announcement on April 16 that it had settled its dispute licensing with the Apple iPhone manufacturer (AAPL). In response to the settlement agreement, Qualcomm shares jumped 23% on Tuesday. The two companies sent representatives to a trial Monday in San Diego, which was to last until May.

Ready to use your morning scroll? Register for Bagels & Stox, our spiritual vision of the best information about markets and investments, right in your inbox! Whether you are a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Dispute settlement

On April 16, Apple and Qualcomm decided to terminate all ongoing litigation, including Apple's subcontractor disputes, and resolve their patent and royalty disputes. As part of the settlement agreement, Apple will make a payment to Qualcomm, although the amount has not been disclosed. The companies also agreed on a multi-year chip supply agreement and a six-year patent license agreement, with a two-year extension option.

Apple-Qualcomm litigation

Apple and Qualcomm have been fighting legal battles for two years and have also filed numerous lawsuits at Apple's initiative in January 2017. Apple has accused Qualcomm of charging unreasonably high fees for the company. using its technologies and abusing its dominant position as a supplier. of smartphone modems. Qualcomm has also paid fines of several million dollars for engaging in anti-competitive practices. Qualcomm also lost a significant portion of its license revenues after the iPhone manufacturer withheld approximately $ 1 billion in royalty payments from Qualcomm since April 2017. Apple had also replaced Qualcomm with the giant Intel chips (INTC) to provide modem chips to its recent iPhone models.

However, recently, Qualcomm has won patents worldwide against Apple in China and Germany. Qualcomm has also won a lawsuit in the United States, which has put more pressure on Apple.

In the midst of attacks and counter-attacks, the two tech giants were severely hampering their activities. Qualcomm was losing significantly to Intel, as Apple started using Intel modem chips. Apple was also looking for a 5G chip provider after Intel abandoned its plan to manufacture 5G modems.