Qualcomm and Apple have agreed to put an end to their licensing dispute and sign a new deal. The settlement includes an unspecified payment from Apple to Qualcomm and an end to all their litigation, including with contracters. The companies also have reached a six-year licence agreement, effective from 01 April, including a two-year option to extend, and a multiyear chipset supply agreement.
Qualcomm said it expects an incremental increase of USD 2.00 in EPS from the new deal, as production ramps up. The deal sees the company putting an end to several years of results under pressure from the loss of billions in Apple income, as well as a licensing dispute with Huawei. Qualcomm's share price rose over 20 percent after it announced the deal.
The dispute started in January 2017 when Apple sued Qualcomm for alleged unfair licensing terms. Apple subsequently stopped working with Qualcomm and turned to Intel for iPhone processors. A series of lawsuits around the world ensued, with Apple and Qualcomm accusing each other of patent infringement. In recent cases, Qualcomm appeared to be gaining the upper hand, with wins in Germany and China, and the main case between the two companies was set to be heard in US court when the settlement was reached.
