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Apple paid $5 billion to $6 billion to settle with Qualcomm: UBS
Kif Leswing:
<p>Apple probably paid Qualcomm between $5 billion and $6 billion to settle the litigation between the two companies, UBS analyst Timothy Arcuri estimated in a note distributed on Thursday.

Apple probably also agreed to pay between $8 and $9 in patent royalties per iPhone, estimated UBS, based on Qualcomm’s guidance that it expects earnings per share to increase by $2 as a result of the settlement.

The UBS estimate suggests that Apple paid a high price to end a bitter legal battle that spanned multiple continents and threatened Apple’s ability to release a 5G iPhone and put pressure on Qualcomm’s licensing business model that contributes over half of the company’s profit…

…Arcuri wrote that the one-time payment was likely for royalty payments that Apple had stopped paying when the two companies were embroiled in litigation, and that is how it was calculated.

The settlement is “a solid outcome for Qualcomm and certainly better than the [roughly] $5 [royalty payment] assumption we had been making,” Arcuri wrote.

If Apple does pay between $8 and $9 in royalties per iPhone it would be a significant increase over the $7.50 in royalties that it previously paid Qualcomm per phone, according to Apple COO Jeff Williams’ testimony in an FTC trial.</p>
apple  qualcomm  5g  modem 
3 days ago by charlesarthur
Qualcomm's joint venture with Chinese province to shut down: The Information - Reuters
Qualcomm's joint venture with Chinese province to shut down: The Information - Reuters $QCOM
qualcomm  from twitter
4 days ago by rcsmedia
Apple puts need for 5G ahead of legal fight in Qualcomm deal • Bloomberg
Ian King and Mark Gurman:
<p>Apple needs chips that will connect the iPhone to the new, fifth-generation wireless networks being introduced now or risk falling behind its rivals. The company had bet on Intel Corp., but recently decided its would-be 5G supplier wasn’t up to the task.

That led Apple back to Qualcomm - and spurred a sudden end to a long-running court fight over patents, component costs and royalties for one of the most critical parts of an iPhone. Modems, or baseband processors, are what connects all iPhones and some iPads and Apple Watches to cellular networks and the internet on the go.

Throughout the fight, which centered on Apple’s accusations that Qualcomm overcharges for patents on its technology, the iPhone maker played down the importance of the modem and Qualcomm’s inventions. Just before the settlement was announced on Tuesday, Apple’s lawyers were in a San Diego courtroom saying the component was just another method of connecting to the internet. In reality, Qualcomm’s modems are leading a potential revolution in mobile internet -- and Apple could have been forced to play catchup without them.

Intel, which dominates the market in personal computer chips, has struggled for decades in mobile. The company pledged that its 5G part was coming in phones next year. But within hours of Apple’s deal with Qualcomm, and with it the loss of its prime mobile customer, Intel announced it would end its effort to produce a 5G modem for smartphones.</p>


The deal was dated April 1 - so Apple had realised Intel's 5G efforts wouldn't bear fruit some time ago, and had probably been negotiating since February. Its only leverage was the possibility that the court case would go in its favour, but that wouldn't get the 5G part, and the clock was ticking. Apple needs the part this year for its design and testing work. So it hit a fairly hard deadline.
apple  qualcomm  5g 
5 days ago by charlesarthur
Intel says it will exit the 5G phone business as Apple and Qualcomm strike multiyear deal - The Verge
it’s unclear when Intel came to this decision, or when it informed Apple, and Intel declined to comment. Either way, phone manufacturers like Apple will need to look elsewhere for their 5G radios now, and that means Intel just ceded that business to Qualcomm.
apple  qualcomm  intel  wireless  business 
6 days ago by jasonsamuels
Qualcomm just beat Apple into submission • Semiaccurate
Charlie Demerjian:
<p>Apple was trying to cut Qualcomm down to size and marginalize them to another supplier of commodity parts. They did this by trying to build up Intel modems and even allegedly handing Intel Qualcomm’s trade secrets when the Santa Clara company could not figure out how to make a working product. For the billions Apple dumped into this enterprise, they failed because Intel, the best of the non-Qualcomm modem makers, quite literally never made a single device that met their promised specs. No we are not joking, Intel’s modem business was a mess.

How bad was it? By the end they were showing multiple versions of the same fake chip photoshopped to ‘be’ a 5G modem. Really, you can’t make this stuff up. Intel claimed release dates, specs, and all sorts of numbers but never showed actual 5G silicon, functional or not. Worse yet they never got LTE modems even close to what they promised Apple. This is Intel’s problem not Apple’s, right?

Actually it was Apple’s problem more than Intel’s. Sure Intel was ‘selling’ Apple modems with a $10 bill wrapped around each one as SemiAccurate exclusively told you last year, but finances only go so far. Remember the iPhones with 600Mbps LTE modems? You know the ones where if you put that same Qualcomm part in any other device it was a 1Gb LTE modem? Then again if you put the same Intel modem in any other device it was a 600Mbps modem, not that there were any other customers dumb enough to use that device despite the contra-revenue pricing. Apple literally crippled their Qualcomm modem to match Intel’s so the finance set would put pressure on Qualcomm.

Although both devices were the same spec on paper, the Qualcomm iPhone had 30% more throughput at than the Intel one under the same conditions. What they didn’t say and that SemiAccurate has tested in the lab is that the Intel modems used about 30% more energy to be 30% slower, something that was pretty similar to previous generations.</p>

So the implication seems to be that this year's iPhones (and mobile-capable iPads?) will also use Intel modems, but after that it's going to be Qualcomm parts. Sounds like that's good for everyone apart from Intel.
Apple  qualcomm  intel 
6 days ago by charlesarthur
Twitter
Prior to settlement, got 's German fake injunction lifted: appeals court deemed it likely f…
Qualcomm  patent  Apple  from twitter_favs
6 days ago by edelagrave
Twitter
CNBC quotes a joint - statement on settlement. According to that one, it truly is over, so…
Apple-  aaplqcom  Qualcomm  from twitter_favs
6 days ago by edelagrave
Twitter
counsel Evan "Fire!" Chesler just got cut off when he was going to talk about the three-patent cases here…
Qualcomm  from twitter_favs
6 days ago by edelagrave
Twitter
Evan Chesler, counsel for , now says the case is about promises, about debts that haven't been paid. That…
Qualcomm  from twitter_favs
6 days ago by edelagrave
Twitter
RT : Common sense against : stresses smartphone functionality also works without modem chip--over WiFi--…
Apple  Qualcomm  from twitter
6 days ago by edelagrave
Twitter
RT : A déjà-vu from the case: telling its entrepreneurial success story (long before the period at issue…
FTC  Qualcomm  from twitter
6 days ago by edelagrave
Twitter
counsel Evan "Fire!" Chesler mostly sounds like some conservative talk radio hosts who are described by o…
Qualcomm  from twitter_favs
6 days ago by edelagrave

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