Fri, May 03, 2019 - Page 10 News List

Qualcomm to get billions from deal


US mobile chipmaker Qualcomm Inc on Wednesday said that it expects a windfall of US$4.5 billion to US$4.7 billion this quarter from its settlement with Apple Inc in a royalty battle.

Qualcomm factored the additional revenue into a forecast in its earnings release, saying that the money would be a payment “from Apple and the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities.”

The Southern California-based company also factored in revenue expected for new royalties from Apple and the makers of its devices.

Qualcomm reported revenue of US$5 billion last quarter, while its forecast for the current quarter was from US$9.2 billion to US$10.2 billion in revenue.

Last month, Apple and Qualcomm announced an agreement to “dismiss all litigation” against each other worldwide in what had been a sprawling battle over royalty payments.

The last-minute settlement cut short a courtroom clash between the tech giants just as it was getting under way in California.

For two years, the companies had fought a multifront brawl that could have required Qualcomm to pay billions of US dollars.

“We entered into settlement agreements with Apple and its contract manufacturers to dismiss all outstanding litigation between the parties,” Qualcomm said in an earnings release on Wednesday.

The chipmaker added that it also entered into a six-year global patent license agreement with Apple that included an option for Apple to extend the deal for an additional two years.

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