Report: Apple paid $ 6 billion for a deal with Qualcomm

Apple reportedly paid between $ 5 billion and $ 6 billion as part of its deal with Qualcomm, according to Timothy Arcuri, an analyst at UBS Investment Banking, in a research note for investors.

Apple and Qualcomm reached a surprise deal to end their legal battle earlier this week as Qualcomm's share price rose more than 38 percent since the deal, adding $ 30 billion to its market value.

The deal included a one-time payment from Apple to Qualcomm Although Apple and Qualcomm are not willing to disclose the amount of the payment, analysts are trying to figure out the details of the deal.

According to the report, Apple and its suppliers have held payments for Qualcomm's patent licenses, which are likely worth more than $ 7 billion.

Apple may also have agreed to pay between $ 8 and $ 9 per patent for each iPhone device. UBS estimates are based on guidance from Qualcomm, which expects earnings per share to increase by $ 2 as a result of the deal .

UBS estimates that Apple has paid a heavy price to end its bitter legal battle with Qualcomm, which has spread across continents, threatening its ability to launch an iPhone that supports 5th generation iPhone 5G networks.

These legal battles also pressured Qualcomm's business model, which accounted for more than half of the chipmaker's profits.

The two companies said the deal included a one-time payment, plus a six-year extension agreement that proposes the use of future iPhone phones for Qualcomm chips.

Analyst Timothy Arkouri wrote that the one-time payment would likely be used to pay for previous payments, which Apple stopped paying when the two companies started legal battles.

If expectations are met and Apple pays between $ 8 and $ 9 per iPhone, this is an increase over the $ 7.5 paid by the Qualcomm manufacturer for each phone sold.