Apple paid Qualcomm $4.5 to $4.7 billion to settle their disputes
Apple and Qualcomm dropped all litigation and settled their disputes, shortly followed by Intel’s announcement of exiting the 5G smartphone chip business. At the time of the settlement announcement, there was no information regarding the amount Apple will have to pay to Qualcomm.
However, that amount is clearly written in Qualcomm’s recently published quarterly financial numbers. Apparently, it costed Apple anywhere between $4.5 and $4.7 billion, according to the document.
While we continue to assess the accounting impacts of the agreements, our financial guidance for the third quarter of fiscal 2019 includes estimated revenues of $4.5 billion to $4.7 billion resulting from the settlement (which will be excluded from our Non-GAAP results), consisting of a payment from Apple and the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities.
This amount is somewhat smaller than what analysts were predicting, around $6 billion, by roughly multiplying the amount of iPhones sold with a fixed fee per unit. Additionally, Qualcomm became, again, an Apple supplier for modem chips to be used inside smartphones, which will give the chip-maker another business boost.
If you are interested in Qualcomm’s Second Quarter Fiscal 2019 results, check out the source link below.