Economy

Qualcomm expects to receive up to $4.7 billion from Apple settlement

Qualcomm expects to receive up to $4.7 billion from Apple settlement”

Qualcomm revealed that Apple will pay it approximately $4.5 to $4.7 billion to dismiss all litigation between the two companies.

Apple's payment will be included in Qualcomm's Q3 results, while licensing revenue will also reflect the fact that the iPhone maker is once again paying royalties.

Qualcomm made the disclosure in its earnings report on Wednesday, while Apple declined to answer questions about the settlement during its own second-quarter earnings conference call on Tuesday.

The stock kept most of the 50%-plus gains of the past few weeks, reflecting investor relief that Qualcomm had found a path to resume supplying chips to the iPhone.

Qualcomm factored the additional revenue into a forecast in its latest earnings release, saying the money would be a payment "from Apple and the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities". Qualcomm mentioned Apple's one-time payment of Qualcomm's royalties, the signed six-year license agreement, and the chip agreement. The figure was less than the US$7 billion Qualcomm claimed Apple owed. Financial details have not been disclosed but the deal is expected to help Qualcomm regain the pre-eminent mobile chip position it held in the early 2010s.

For comparison, Qualcomm's entire revenue for the January-to-March quarter was $4.9 billion. Since the settlement, Qualcomm's share price has risen by 43%, and Apple's has also risen by more than 5%.

The Apple issue may be settled, but China is not, and Qualcomm warned that its inability to conquer that market will hinder sales for the rest of the year. Wall Street is expecting earnings of 87 cents a share on revenue of $5.08 billion. Steve Mollenkopf, CEO of the company, said their partnership with Apple is executing well on strategic priorities as 5G commercial launches begin around the world.

Qualcomm estimated it would ship between 150 million and 170 million of [its cellular phone system-on-chips] in its third quarter, a decrease of as much as 25% compared with the same period past year.



Like this

loading...
loading...

Latest


02 Мая 2019
British PM dismisses defense secretary due to security leakage - PM’s office
This article was from The Associated Press and was legally licensed through the NewsCred publisher network. Penny Mordaunt , the worldwide development secretary, was appointed to replace Williamson .

02 Мая 2019
Fmr. UA assistant says Miller paid Ayton $10K a month
I have never paid a recruit or prospect or their family or representative to come to Arizona . "I never have and I never will". Later, Dawkins said, "Hey, he's putting up some real money for them [racial slur]". "But that's his fault", Richardson said .

02 Мая 2019
Woman with measles potentially exposed 'Avengers: Endgame' opening night audience in California
The U.S. has seen 704 cases across 22 states in 2019, Fox News reported. Measles symptoms include runny nose, fever and a red-spotted rash.

02 Мая 2019
Trump Sues Banks to Block House Subpoenas for Records
Deutsche Bank told the Trumps that they planned to comply with the subpoena by May 6 absent a court order quashing the subpoena. The lawsuit also seeks to block the banks from being forced to disclose any information in compliance with the subpeonas.

02 Мая 2019
Brendan Steele Hopes To Find Form At Quail Hollow
The 2021 Wells Fargo Championship will be held at TPC Potomac at Avenel Farm, which has hosted PGA Tour events in the past. On Sunday of last year's tournament, Day played the Green Mile in two under to secure a two-shot victory.

02 Мая 2019
India plans Chandrayaan-2 mission in July
The space mission will be launched from the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh. However, the mission that lasted 312 days had successfully completed 95% of it's planned objectives.

02 Мая 2019
Sigourney Weaver introduced the encore of the 'Alien' high school play
While the school's stage version of " Alien " ran for several weeks, the posted video is of an encore performance from April 26.

02 Мая 2019
NFL Claims Draft TV Coverage Breaks Record With 47.5M Total Viewers
All but 13 states claimed former high school players in the 2019 NFL Draft , which concluded Saturday in Nashville (Tenn.). The Raiders will play their final season in Oakland this year before moving to Nevada.

02 Мая 2019
Democratic Presidential Candidate O'Rourke Lays Out $5 Trillion Climate Plan
The plan is a little bit Green New Deal and a little bit neoliberal, which is pretty much O'Rourke in a nutshell . O'Rourke's campaign calls the price tag the "single largest investment in fighting climate change in history".

02 Мая 2019
Four Seasons care home operator on brink of administration
Approximately three and a half thousand staff work in these homes who will be left fearful for their job security. It is understood the group said it had secured funding to ensure continuity of care while it seeks a new owner.