Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
MacBook Pro Updates
Apple Paid an Estimated $5-$6 Billion to Settle Qualcomm Dispute, Plus $8-$9 Per iPhone in Royalty Fees
Apple likely paid somewhere around $5 to $6 billion to settle its ongoing legal battle with Qualcomm, according to estimates shared today by UBS analyst Timothy Arcuri (via CNBC).
The $5 to $6 billion payment would have been for royalty fees that Apple had stopped paying over the course of its two year legal fight with Qualcomm.
Qualcomm may also be receiving between $8 and $9 per iPhone from Apple in ongoing patent royalties, a figure calculated based on guidance numbers that Qualcomm provided following the settlement. Qualcomm said that it expects its earnings per share to increase by $2.
Apple previously paid $7.50 in royalties, so at $8 to $9 per iPhone, Apple would be shelling out more cash than it did before.
Apple appears to have had no alternative but to settle with Qualcomm, as it had no other way to source 5G chips for its 2020 iPhone lineup. Apple initially planned to use Intel chips, but rumors suggested Intel wasn't meeting development goals, leading to tension between Apple and Intel.
Just hours after Apple and Qualcomm announced a settlement deal, Intel said that it was exiting the 5G smartphone modem business and would not be making 5G smartphone chips at all.
It's not entirely clear if Apple settled with Qualcomm because it knew of Intel's plan to abandon 5G chip development or if Intel made the decision after learning of Apple's settlement plans, but either way, it leaves Apple with no choice but to re-adopt Qualcomm chips for future iPhones.
Smartphone makers like Samsung will have 5G smartphones available starting this year, so Apple could not afford to delay the rollout of its 5G iPhones. Launching in 2020 already puts Apple somewhat behind, but 5G networks from U.S. carriers are still very much in development.
Following news of the settlement, Qualcomm's stock has gone up over 38 percent, marking a big win for the San Diego company. The agreement includes a six-year licensing deal along with a "multiyear chipset supply agreement."
It sounds like Apple will need to rely on Qualcomm for the foreseeable future, but Apple is working on its own modem chip technology, which may eventually allow it to drop Qualcomm as a modem chip supplier.
The $5 to $6 billion payment would have been for royalty fees that Apple had stopped paying over the course of its two year legal fight with Qualcomm.
Qualcomm may also be receiving between $8 and $9 per iPhone from Apple in ongoing patent royalties, a figure calculated based on guidance numbers that Qualcomm provided following the settlement. Qualcomm said that it expects its earnings per share to increase by $2.
Apple previously paid $7.50 in royalties, so at $8 to $9 per iPhone, Apple would be shelling out more cash than it did before.
Apple appears to have had no alternative but to settle with Qualcomm, as it had no other way to source 5G chips for its 2020 iPhone lineup. Apple initially planned to use Intel chips, but rumors suggested Intel wasn't meeting development goals, leading to tension between Apple and Intel.
Just hours after Apple and Qualcomm announced a settlement deal, Intel said that it was exiting the 5G smartphone modem business and would not be making 5G smartphone chips at all.
It's not entirely clear if Apple settled with Qualcomm because it knew of Intel's plan to abandon 5G chip development or if Intel made the decision after learning of Apple's settlement plans, but either way, it leaves Apple with no choice but to re-adopt Qualcomm chips for future iPhones.
Smartphone makers like Samsung will have 5G smartphones available starting this year, so Apple could not afford to delay the rollout of its 5G iPhones. Launching in 2020 already puts Apple somewhat behind, but 5G networks from U.S. carriers are still very much in development.
Following news of the settlement, Qualcomm's stock has gone up over 38 percent, marking a big win for the San Diego company. The agreement includes a six-year licensing deal along with a "multiyear chipset supply agreement."
It sounds like Apple will need to rely on Qualcomm for the foreseeable future, but Apple is working on its own modem chip technology, which may eventually allow it to drop Qualcomm as a modem chip supplier.
Tags: Qualcomm, Apple vs. Qualcomm
[ 278 comments ]
Top Rated Comments
(View all)
5 weeks ago
Apple previously paid $7.50 in royalties, so at $8 to $9 per iPhone, Apple would be shelling out more cash than it did before.
So, it backfired for Apple and they're now worse off for trying to throw another partner under the bus.
5 weeks ago
In other words, Charlie Demerjian was right:
"Qualcomm just pummeled Apple over patents and technology because, well, it appears the scales tipped in Qualcomm’s favor. SemiAccurate has been saying that Qualcomm would prevail and since we first started covering this suit and Apple’s tactics, and now they have. If you read our last piece on the suits it was pretty obvious that Apple was in the wrong, allegedly caught red handed, and dug the hole deeper with their petty and vindictive reactions. Qualcomm claims to have multiple emails where Apple gave sensitive trade secrets to a competitor, then refused to allow Qualcomm to exercise their contractual audit rights. While there may be some more evidence not presented publicly, it sure looks like Apple was in the wrong. So rather than fixing their alleged wrongs and making Qualcomm whole, they appear to have withheld legitimate royalty payments and launched a barrage of somewhat specious trade and patent related counter-suits along with lowball press sniping."
https://www.semiaccurate.com/2019/04/16/qualcomm-just-beat-apple-into-sumbission/
"Qualcomm just pummeled Apple over patents and technology because, well, it appears the scales tipped in Qualcomm’s favor. SemiAccurate has been saying that Qualcomm would prevail and since we first started covering this suit and Apple’s tactics, and now they have. If you read our last piece on the suits it was pretty obvious that Apple was in the wrong, allegedly caught red handed, and dug the hole deeper with their petty and vindictive reactions. Qualcomm claims to have multiple emails where Apple gave sensitive trade secrets to a competitor, then refused to allow Qualcomm to exercise their contractual audit rights. While there may be some more evidence not presented publicly, it sure looks like Apple was in the wrong. So rather than fixing their alleged wrongs and making Qualcomm whole, they appear to have withheld legitimate royalty payments and launched a barrage of somewhat specious trade and patent related counter-suits along with lowball press sniping."
https://www.semiaccurate.com/2019/04/16/qualcomm-just-beat-apple-into-sumbission/
5 weeks ago
Definitely seems like Apple won here ― Apple's lawyers should get a raise
it's a ****ing joke
it's a ****ing joke
5 weeks ago
I think the years of this “partnership” would be pretty much numbered. Apple is only paying for some more time to develop its own modem.
5 weeks ago
Only if you believe liars and their made-up numbers.
There's no way Apple would settle by paying MORE than previously. They initiated this case and they had the upper hand. This analyst just caters to the anti-Apple crowd (and the stock market manipulators/stock shorters) by trying to spin this as a Qualcomm win and Apple loss.
5 weeks ago
Apple's own press release is proof enough they caved.
Look at the language. Absolutely everything in the press release was Qualcomm getting licensing fees, getting a one-time payment, getting a multiyear chip supply contract.
Apple was completely silent because they got nothing and their ass handed to them. Apple can afford it, but it's pretty clear Tim Cook isn't a great strategist. There's only one company that owns 5G that's Qualcomm. That may change in the future, but right now that's a fact.
Look at the language. Absolutely everything in the press release was Qualcomm getting licensing fees, getting a one-time payment, getting a multiyear chip supply contract.
Apple was completely silent because they got nothing and their ass handed to them. Apple can afford it, but it's pretty clear Tim Cook isn't a great strategist. There's only one company that owns 5G that's Qualcomm. That may change in the future, but right now that's a fact.
5 weeks ago
Apple had been withholding royalty payments for two years. They sold upwards of half a billion iPhones during that time. It adds up. :)
5 weeks ago
In other words, Charlie Demerjian was right:
"Qualcomm just pummeled Apple over patents and technology because, well, it appears the scales tipped in Qualcomm’s favor. SemiAccurate has been saying that Qualcomm would prevail and since we first started covering this suit and Apple’s tactics, and now they have. If you read our last piece on the suits it was pretty obvious that Apple was in the wrong, allegedly caught red handed, and dug the hole deeper with their petty and vindictive reactions. Qualcomm claims to have multiple emails where Apple gave sensitive trade secrets to a competitor, then refused to allow Qualcomm to exercise their contractual audit rights. While there may be some more evidence not presented publicly, it sure looks like Apple was in the wrong."
https://www.semiaccurate.com/2019/04/16/qualcomm-just-beat-apple-into-sumbission/
No, he was wrong.
That guy is a Qualcomm shill, plain and simple. Nothing he says should be taken seriously. Just look at his history of articles to see how obvious he is in support of Qualcomm.
5 weeks ago
The case didn't even last 2 days and Qualcomm caved in.
Man alive you love Apple, even Stevie Wonder can see Apple lost this one.[ Read All Comments ]
Mobile network EE has announced it will launch 5G in the United Kingdom on May 30, beating rival Vodafone's 5G offering which launches in early July.
At a London press event this morning,...
Valve has released a new free standalone Steam Chat app for iOS and Android that brings several of the desktop Steam chat client's features to mobile.
Steam users can now use their...
As of today, transit users in the Portland-Vancouver area are able to use their iPhones and Apple Watches to ride the TriMet, C-Tran, and Portland Streetcar, according to the Portland Tribune.
A...
There are quite a few deals happening today that could save shoppers some money on iTunes credit, Apple's Smart Battery Case for the iPhone XR, and previous generation Retina iMacs. All of these...
Smart home company Tado has announced an updated version of its Smart AC Controller that includes Apple HomeKit support out of the box.
Available today in the U.K. and other European...
National Australia Bank (NAB) today announced support for Apple Pay, allowing NAB customers with a Visa Card to make purchases using the Apple Pay payments service.
NAB, a former notable Apple...
MacRumors readers have a chance to save on a collection of Anker accessories this week, thanks to our latest exclusive sale with the popular accessory maker. This time around our sale includes up to...
Hyper today announced the launch of its new HyperJuice 130W Dual USB-C Battery Pack, which is now available for purchase following a successful crowdfunding campaign.
The new HyperJuice Battery...
