US CHIPMAKER Qualcomm expects to pocket between $4.5bn and $4.7bn (£3.4bn to £3.6bn) from its settlement with Apple.
The two firms last month announced that they had agreed to dismiss all litigation, bringing an abrupt end to a two-year dispute began when Apple accused Qualcomm of charging more than it should on patents "for technologies they have nothing to do with."
Until now, all we knew was that the settlement included an unspecified payment from Apple to Qualcomm, alongside a multiyear chipset supply agreement that will see the chipmaker's modems once again appear in the iPhone; when the legal drama began back in 2017, Apple dropped Qualcomm as a supplier and solely relied on Intel as its provider of LTE modems.
Qualcomm offered up some more details about the deal during its quarterly earnings report on Wednesday, however, revealing that it will net around $4.5bn to $4.7bn from Apple in its third fiscal quarter.
The chipmaker said that cashpile will consist of "a payment from Apple and the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities."
"We believe the settlement is a win for both companies, and we are pleased with the result and pleased to have it behind us," Qualcomm CEO Steve Mollenkopf said, presumably while rubbing his hands together. "We are committed to a strong partnership with Apple."
This payment isn't the only bonus Qualcomm has got from the settlement, as just hours after it became official, Intel announced that it will quit building 5G modems for smartphones.
The unsurprising move will also see Intel "complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices."
"We are very excited about the opportunity in 5G and the 'cloudification' of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns," Intel CEO Bob Swan said in a statement.
"5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world." µ
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