Qualcomm announced on Tuesday, August 20, that it has entered into a new five-year patent license agreement with LG Electronics to develop, manufacture and sell 3G, 4G, and 5G smartphones.
LGE had announced in June it was unable to narrow differences with Qualcomm and renew its chip license agreement.
According to the Wall Street Journal, the deal is “a win for Qualcomm because it locks up one of the top 10 handset manufacturers in a more top-heavy market,” IDC analyst Ryan Reith said. “There are fewer and fewer brands out there.”
Qualcomm in April also reached a surprise settlement that cleared the road for iPhones to once again use its modem chips, but its shares were hurt in July when Apple bought Intel Corp’s modem business for US$1 billion.