Agreement with Apple brings QUALCOMM up to 4.7 billion dollars

The agreement in the lengthy patent dispute with Apple will bring in the current quarter 4.5 to 4.7 billion dollars (4.0 to 4.2 billion euros) to the chip company QUALCOMM.

It is the first indication of the magnitude of Apple’s payment in the comparison made two weeks ago. However, QUALCOMM also counted on the number of obligations it had lost with respect to Apple and the iPhone pavers.

The dispute with Apple had the chip company financially heavily burdened: QUALCOMM got since 2017, no more payments from the iPhone contract manufacturers and had estimated the lost revenue to seven billion dollars plus interest.

The burden was still noticeable in the second quarter of the financial year, which ended at the end of March. Revenues fell 5 percent year-on-year to $ 5 billion, QUALCOMM said after the US close on Wednesday. At the same time, QUALCOMM doubled its profit to $ 663 million, partly due to lower expenses.

After deducting the payment from the Apple comparison, QUALCOMM expects further declining revenues for the current year. Among other things, the Group referred to the decline in smartphone sales. According to calculations of the analysis company IDC, the sales of computer mobile phones alone in the past quarter by 6.6 percent. Investors were not impressed by the outlook: the stock lost more than three percent in after-hours trading.

Apple is likely to come again next year as a buyer of QUALCOMM chips in appearance. At the same time, however, the iPhone group will in future also pay license fees to QUALCOMM. With the currently second largest smartphone manufacturer Huawei, QUALCOMM still has no permanent new patent deal. In the past quarter, QUALCOMM still received $ 150 million from the Chinese group, but warned that further payments were not secured.

Leave a Reply

Your email address will not be published. Required fields are marked *