Apple May Have Paid Qualcomm Up to $6 Billion to Settle [Report]

Apple May Have Paid Qualcomm Up to $6 Billion to Settle [Report]

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Apple may have paid Qualcomm $5 to $6 billion to settle the litigation between the companies, according to UBS analyst Timothy Arcuri via CNBC.

Additionally, the analyst believes that Apple agreed to pay between $8 to $9 in royalties per iPhone based on Qualcomm's guidance that it expects the settlement to increase EPS by $2.

If correct, Apple paid a high price to end the legal battle.

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

COO Jeff Williams previously said that if Apple did pay $8 to $9 in royalties per iPhone it would be a significant increase over the $7.50 it had been paying before.

It's rumored that Apple was forced to sign a deal with Qualcomm as Intel had been missing deadlines on the development of its 5G modem. Following the Apple Qualcomm deal, Intel announced that it would be exiting the 5G smartphone modem business.

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Apple May Have Paid Qualcomm Up to $6 Billion to Settle [Report]

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