Agreement with Apple elevates Qualcomm to $ 4.7 billion



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Agreement with Apple elevates Qualcomm to $ 4.7 billion

The agreement in the long patent dispute with Apple will bring the chip company Qualcomm in the current quarter 4.5 to 4.7 billion dollars. It is the first indication of the magnitude of Apple's payment in the wake of the agreement reached two weeks ago.

Qualcomm counted on the number, however, also with omitted obligations for Apple and the iPhone pavers with. The dispute with Apple had the financially heavily overburdened chip company: Qualcomm has received since 2017, no more payments from contracted iPhone manufacturers and had lost revenue resulting in seven billion dollars plus estimated interest.

The load was still noticeable in the second quarter of the fiscal year, which ended in late March. Revenue fell 5 percent year on year to $ 5 billion, Qualcomm said after the US closed on Wednesday. Qualcomm was able to double its profit to $ 663 million, partly due to lower spending.

Apple is no longer a customer

Less than Apple's comparison payment, Qualcomm expects new decreasing revenue for the current year. Apple should appear again next year as Qualcomm's customer in appearance. With the second largest smartphone maker currently, Huawei, Qualcomm still does not have a permanent patent contract. Investors were not impressed by the outlook: shares lost about five percent in after-hours trading at times.

Apple began the dispute with Qualcomm more than two years ago and charged the company in a lawsuit, demanding very high royalties for its patents and operating unfair competition. Qualcomm has responded to the claim that in Apple devices, invented technology is used without a patent license. Apple has referred to the modems for the latest iPhone models exclusively from the semiconductor giant Intel – which comes out after the resolution of the company's patent dispute with smartphone chips.

Most of all, Qualcomm is known as the leading chip supplier for smart phones, and patent licenses are the second – and most lucrative – leg. This business model remains under pressure after the end of the dispute by Apple. In January, a lawsuit filed by the US Food and Drug Administration (FTC) accused Qualcomm of unfair competition of patent licenses as a prerequisite for delivery of chips. This procedure is not decided by a jury, but by a judge, his verdict is still pending. (SDA / DPA)

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