More details about deal with Apple might come out in May: Qualcomm

Source:Xinhua Published: 2019/4/18 20:08:28

More details of Apple-Qualcomm deal might come out though its quarterly earnings conference call scheduled in May, Qualcomm told Xinhua on Wednesday.

Qualcomm and Apple announced an agreement on Tuesday to dismiss all litigation between the two companies worldwide.

Qualcomm told Xinhua no further details are available at the moment and more information might become available in the earnings call on May 1.

According to release from the two companies, their settlement includes an unspecified payment from Apple to Qualcomm.

The two companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend and a multi-year chipset supply agreement.

All worldwide litigation will be dismissed and withdrawn, including claims involving Apple's contract manufacturers, according to current deal between the two companies.

Shares of Qualcomm on Wednesday jumped 12.25 percent following a 23.21-percent surge in the previous session. Apple stock also closed 1.95 percent higher. Qualcomm has added about 26 billion US dollars to its market value over the course of two days.

Wall Street analysts believed the Apple-Qualcomm settlement would help Qualcomm strengthen its 5G network position and expand revenue accordingly.

Analysts had previously said that the dispute between Qualcomm and Apple could slow down Apple's plans to support next-generation 5G networks. Qualcomm is one of the top suppliers of chips that can connect to 5G networks.

The agreement opens up the possibility that Apple could release a 5G iPhone sooner than expected with Qualcomm's modems, analysts said.

New iPhone models released in 2018 used Intel modem chips instead of Qualcomm's technology. On Tuesday, Intel announced its decision to withdraw from 5G smartphone modem business following the Apple-Qualcomm settlement.

Apple and Qualcomm started proceedings on Monday in a multi-billion-US-dollar patent trial in federal court in San Diego, which were expected to last until May. The settlement was announced after Apple lawyers made their opening argument.

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