Anonymous ID: ace94d April 16, 2019, 4:45 p.m. No.6203861   🗄️.is 🔗kun

Qualcomm shares soar on surprise settlement with Apple of long legal dispute

 

(Reuters) - Qualcomm Inc on Tuesday won a major victory with a surprise settlement of its wide-ranging legal dispute with Apple Inc that includes a supply agreement paving the way for the iPhone to once again use Qualcomm modem chips. The settlement also incorporates a six-year patent license and a payment from Apple to Qualcomm, but the companies did not disclose the amount.

Because Qualcomm is already shipping 5G chips while Apple supplier Intel Corp is still developing them, the deal gives Apple an opportunity to catch the iPhone up to Samsung Electronics Co Ltd and other manufacturers whose phones already work on the faster networks.

“This is a big win” for Qualcomm, said Christopher Rolland, an analyst at Susquehanna Financial Group. Shares of Qualcomm jumped 23 percent to $70.45, their biggest gain in more than 19 years.

 

The settlement followed two years of increasingly bitter legal conflict between the two companies and came as a opening arguments took place at a trial in federal court in San Diego.

 

As their conflict intensified, Apple had relied exclusively on Intel chips since last year. Apple stock rose marginally, gaining two cents to $199.25.

 

Shares of Intel, Qualcomm’s main competitor for supplying modem chips to Apple, rose 43 cents to $56.71. While Intel likely will lose some share of iPhone chips, Intel investors have been lukewarm on the modem chip business because they are less profitable than Intel’s core CPU chips.

 

“Intel isn’t trading lower because modems represent such a small portion of revenues for the company,” said Patrick Moorhead of Moor Insights & Strategy.

 

The deal could help Qualcomm return to the preeminent position it held in the early 2010s when it dominated the transition to 4G mobile networks and expanded revenues dramatically.

https://www.reuters.com/article/us-apple-qualcomm/qualcomm-shares-soar-on-surprise-settlement-with-apple-of-long-legal-dispute-idUSKCN1RS22C?feedType=RSS&feedName=businessNews

Anonymous ID: ace94d April 16, 2019, 5:24 p.m. No.6204300   🗄️.is 🔗kun

>>6204166

yes they do however if you look at how most of that is achieved it's pretty farsical. Not all of them do it but enough do it to make you question it.

They have a big problem now as those margins are now shrinking.