Apple and Qualcomm ended their two-year legal battle abruptly last month with a surprise settlement, but for how much has been the million-dollar question on everyone's mind. Thanks to Qualcomm's Q2 earnings published this week, we now have an approximate number: $4.5 billion to $4.7 billion, not counting future royalties for Apple's use of their chips.
The dispute started in 2017 when Apple sued Qualcomm over contentions with its patent licensing practices. The chip company's near monopoly on supplying smartphone modems was letting it get away with demanding artificially inflated prices, Apple argued. Qualcomm fired back with patent infringement lawsuits later that year, and the two have been trading blows for feels like an eternity since.
A Wall Street Journal report states that Apple decided to make amends once the company determined one of Qualcomm's few competitors in the 5G modem market, Intel, couldn't meet its demands in time for a 5G iPhone. The left Apple with essentially two choices: start manufacturing the chips in-house, or make nice with Qualcomm, an ironic development given the accusations of monopolistic practices that kicked off the entire dispute. With this settlement, Apple secures a six-year global patent licensing agreement with Qualcomm with the possibility of extending it an additional two years.
Qualcomm's stock price rose more than 20% to a total market cap of $85 billion immediately following the settlement. Apple's stock prices, though, experienced a slight dip before going up by barely 1%. As for Intel, the company plans to complete "an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices" going forward.
We may earn a commission for purchases using our links. Learn more.
The Galaxy S20 FE is the best Samsung phone you can buy
Samsung makes a lot of phones — from $1,300 flagships with insane 50x zoom cameras to $250 budget phones with massive batteries. These are the best Samsung phones you need to know about in 2020.
Tales From the Galaxy's Edge trailer wields The Force and a release date
Stories far and wide reveal The Force in this full-length Star Wars: Tales From the Galaxy's Edge trailer, coming next month for Oculus Quest and Oculus Quest 2.
Review: Amazon's new duo of Echo Dots are a roundabout success
At its fall 2020 event, Amazon unveiled an entirely new design for its Echo smart speaker lineup, featuring a soft, spherical design on the standard Echo (4th Gen) and the three flavors of Echo Dot (4th Gen). We took a look at the Echo Dot with Clock (4th Gen) and Echo Dot (4th Gen) to see how much they've improved over the previous generation and let you know if we think you should buy...
Upgrade the storage in your Galaxy Note 20 Ultra with a microSD card
There's never enough storage when you're downloading movies and TV shows to watch offline, but the Galaxy Note 20 Ultra allows you to expand from the base 128GB and fit more files than ever on your phone.