Qualcomm pops on Apple settlement (video)

Apple, not so much.

Qualcomm pops Apple Settlement

From Apple PR:

San Diego and Cupertino, California — Qualcomm and Apple today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

My take: The case was an existential threat for Qualcomm. This lifts the cloud.

Cue the CNBC video (includes Gene Munster soundbite):

11 Comments

  1. David Emery said:

    Shame on Apple for letting Qualcomm off the hook. The Qualcomm stock price shows that Wall St thought they were likely to lose (big.) I’ll be interested to read Florian Mueller’s take on this.

    1
    April 16, 2019
  2. Kathy Corby said:

    Can’t help but wonder if it had to do with sourcing 5G chips for 2020? Even if Samsung does provide some of those, Apple likes to have/ may need more than one source. And I wouldn’t be as optimistic as the market seems to be on Qualcomm’s behalf– we learned a long time ago that Apple’s suppliers don’t necessarily do well when Apple does. Tim can squeeze a nickel pretty hard when it comes to pricing. In any case–with apologies to the attorneys on the site– in prolonged litigation, the only real winners are the lawyers.

    1
    April 16, 2019
  3. Peter Kropf said:

    I wonder how Apple played this. Did they successfully change Qs licensing model that was based on the pricing of the whole device?

    0
    April 16, 2019
  4. Gary Morton said:

    The market seems to be reacting like this is a meh or a small loss for Apple and the greatest thing ever for Qualcomm. It is most likely that both sides had to give a great deal in the settlement. Such is the nature these types of lawsuits. While an existential threat for Qualcomm–which meant something that would likely go to the Supreme Court if Apple continued to press–the coming 5G modem supply dilemma, likely need to license tech from Qualcomm for Apple’s home grown modem, and many other factors also lifts a cloud for Apple. While that cloud may not have been as dark or ominous as the one over Qualcomm, it is highly doubtful that Cook and company were out-negotiated.

    3
    April 16, 2019
    • Turley Muller said:

      The implication is that investors did not believe QCOM has any effect on AAPL’s value. QCOM is up 30% while AAPL is relatively unchanged. So obviously this is non-event for Apple. I’m sure Apple will still develop its own baseband, so I am not sure this is a huge win for QCOM longterm, since it’s unknown just how much future business they will actually get from Apple, other than the older models Apple still sells that use QCOM modems.

      You raise a good point about Apple developing its own chip. Without question QCOM would be suing over that. Apple’s motivation for developing its own does not stem from it wanting to avoid licensing etc. Apple wants to integrate everything into a single chip and tailor to its specific needs.So I bet Apple will just license the technology opposed to using actual QCOM chips. Apple might in the interim, but I don’t expect that’s the longterm plan.

      1
      April 16, 2019
  5. Kathy Corby said:

    Ha! Per Macrumors: “Apple is planning to purchase 5G modem chips from Qualcomm for use in its 2020 iPhones, according to a source with knowledge of today’s settlement plans that spoke to Nikkei” You heard it here first 🙂

    0
    April 16, 2019
  6. David Emery said:

    Intel pulls out of the 5G phone market. Bet they’ll take a hit Wednesday…

    1
    April 16, 2019
    • David Emery said:

      And INTC is up 2 1/2% this morning. Here’s some investment advice: Don’t take my investment advice! 🙂 🙂

      0
      April 17, 2019
  7. Patrick Beyrouti said:

    I believe this is a major win for Apple , misunderstood by analysts : ONLY positives !
    No penalties imposed on Apple
    Apple just paid for amounts it withheld since April 2017 , Should have been about $10 iPhone . Surely was provisioned for , no impact financially .
    Apple got a discount on the above withheld licensing fees
    Apple got a NEW licensing agreement
    Apple got best 5G chip secured
    Apple saved INTEL from embarrassment … failing to a get a decent 5G chip in time to market !!!!

    0
    April 16, 2019

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