A PYMNTS Company

US: Apple likely paid $6b in Qualcomm settlement

 |  April 18, 2019

Apple probably paid Qualcomm between $5 billion and $6 billion to settle the litigation between the two companies, reported CNBC.

Apple probably also agreed to pay between $8 and $9 in patent royalties per iPhone, estimated UBS, based on Qualcomm’s guidance that it expects earnings per share to increase by $2 as a result of the settlement.

The UBS estimate suggests that Apple paid a high price to end a bitter legal battle that spanned multiple continents and threatened Apple’s ability to release a 5G iPhone and put pressure on Qualcomm’s licensing business model that contributes over half of the company’s profit.

The companies, which announced the settlement on Tuesday as a trial in one of their many legal disputes got underway, said that the settlement included a one-time payment from Apple to Qualcomm as well as a chipset supply agreement that suggested that future iPhones would use Qualcomm modem chips.

Full Content: CNBC

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.