Apple and Qualcomm settle patent fee feud just after trial starts

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3. Qualcomm gets big windfall in surprise settlement, but Apple may have saved the iPhone from 5G doom

Opinion: Qualcomm gets big windfall in surprise settlement, but Apple may have saved the iPhone from 5G doom

Published: Apr 17, 2019 7:10 a.m. ET

Intel wasn’t able to give Apple all it needed for 5G

By THERESE POLETTI
COLUMNIST

Apple Inc. and Qualcomm Inc.’s surprise settlement agreement Tuesday will result in a huge cash windfall for Qualcomm, and puts Apple on a faster path to 5G for the iPhone.

The companies issued a terse joint press release Tuesday that did not disclose any financial terms of a settlement that includes a six-year deal with options for more and payments from Apple. Qualcomm QCOM, +12.73% did add a slide to the news release that it sent reporters and analysts to indicate that it expects an additional $2 a share in profit. Wells Fargo analyst Aaron Rakers estimated, based on that statement, that Qualcomm expects about $2.4 billion as product shipments begin to ramp.

Qualcomm’s shares soared more than 20% in regular trading as the news filtered out. Apple AAPL, +0.45% shares were pretty much flat on the news, since the company will be shelling out possibly several billion dollars in catch-up payments to Qualcomm, plus attorney’s fees, for litigation that has now gone on a little more than two years.
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NEVER MIND —
Intel quits 5G modem business hours after Apple settles with Qualcomm
Intel was reportedly struggling to produce 5G chips in time for the 2020 iPhone.
TIMOTHY B. LEE - 4/17/2019, 8:02 AM