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