The settlement between Qualcomm and Apple includes a one-time non disclosed payment from Apple to Qualcomm. The companies have entered into a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend. A multiyear chipset supply agreement has also been put into place.
All worldwide litigation will be dismissed and withdrawn, including claims involving Apple’s contract manufacturers.
Both the global patent and the chipset supply agreement are expected to contribute an incremental EPS of approximately $2.00 as product shipments ramp.
This agreement between Qualcomm and Apple seems to have put an end to Intel's efforts in 5G modems for smartphones as Intel Corp. (Santa Clara, Calif.) has said it plans to quit the 5G smartphone modem business and to consider whether to continue with 4G and 5G modems for PCs and IoT devices.The decision to quit the 5G modems business seems to be part of strategic move for Intel away from consumer sector, such as PCs, to focus on data center and networking business. The company said it will continue to invest in producing chips for 5G networking infrastructure.
The company also said it would continue to meet its commitments to supply its 4G smartphone modem product line but does not expect to launch 5G modems for smartphone, including those originally planned for launches in 2020.
See also: Apple purchases on-device AI startup