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Qualcomm to Score $4.5B – $4.7B From Apple, Per Earnings Release

Qualcomm to Score $4.5B – $4.7B From Apple, Per Earnings Release

Qualcomm today announced its quarterly earnings and also shared numbers on what it expects to receive in the coming quarter thanks to its recent legal settlement with Apple.

Axios reports that the San Diego modem maker will record $4.5 to $4.7 billion in revenue from the Apple settlement, which includes a “cash payment from Apple and the release of related liabilities.”

The two firms reached a settlement back in mid-April, each withdrawing all lawsuits and litigation against the other. While it was announced at the time that the settlement included a payment from Apple to Qualcomm, both companies decline to provide details on the amount Apple would be paying.

Following the announcement, analysts estimated Apple would be paying out $5 billion to $6 billion, but that estimate appears to have turned out to be a bit high

The two companies agreed to a six year licensing agreement and a multiyear chipset supply agreement. Qualcomm is expected to supply 5G modem chips to Apple for use in the 2020 iPhone lineup.

Apple apparently, at least in part, settled with Qualcomm because it needed 5G modem chips for their 2020 iPhone lineup. Apple had planned on using Intel as their 5G modem supplier, but Intel couldn’t meet its development goals.

Yesterday, Apple CEO Tim Cook said that Apple “feels good” about the resolution with Qualcomm. “We’re glad to put the litigation behind us and all the litigation around the world has been dismissed and settled,” said Cook. “We’re very happy to have a multi-year supply agreement and we’re happy that we have a direct license arrangement with Qualcomm that was important for both companies.”