Apple will pay between $ 4.5 billion and $ 4.7 billion according to Qualcomm

by Kelvin
Apple irá pagar entre US$4,5 bilhões e US$4,7 bilhões em acordo com a Qualcomm

Qualcomm released a report informing your earnings for the second fiscal quarter of 2019, among the information contained in the document is the amount that will be paid by Apple in the compensation process that companies recently agreed to. The amount disclosed will be between $ 4.5 billion and $ 4.7 billion in licensing fees.

Qualcomm claimed that the amount to be passed on to the company would be approximately $ 7 billion, analysts estimated that the deal had been closed in $ 6 billion. The calculation took into account the years both companies spent in court, meaning that it was the time that Apple blocked the profit that should be passed on to the processor company.

  

Although Luca Maestri, Chief Financial Officer of Apple, saying that the terms of the deal required companies to maintain financial details, Qualcomm apparently ignored this information as it detailed some figures in its report.

“We are also pleased to have reached multi-year agreements with the Apple and we look forward to continuing to support you as a customer. We are performing well on our strategic priorities as 5G commercial launches begin worldwide. Our 5G technology and product leadership, as well as our expansion into new industries and product categories, creates a solid foundation for long-term revenue and profit growth. ” – Steve Mollenkopf, CEO of Qualcomm Incorporated

The agreement with Apple releases Qualcomm from reimbursing Apple or its suppliers, the report also informs you that the agreed indemnity payment does not reflect the future royalties of Apple. Shares of the SoC maker rose sharply following the agreement with Apple, which demonstrates that the profits obtained are even greater than the agreed compensation.

Now Qualcomm is also consolidating itself as 5G market leader, since one of its biggest competitors, Intel, (which was supplying its chips to the Apple during the process), gave up on investing in 5G research for the mobile market and announced that it will focus on infrastructure technology. The reason for the withdrawal was in fact the agreement between Qualcomm and Apple.

To check out the full Qualcomm report you can click here.

Via: TechPowerUp, 9To5mac Source: Qualcomm