Apple, Qualcomm agree to end all legal disputes

Apple, Qualcomm agree to end all legal disputes

Qualcomm countered that Apple reneged on its contracts. It was expected that the trial would last until May, but here we are. Qualcomm hit back with a countersuit accusing Apple of instructing its contractors to withhold royalty payments to Qualcomm - and the litigation snowballed from there. Both sides scored victories in various court systems but they're finally calling a truce. The agreement includes an undisclosed payment from Apple to Qualcomm, a six-year licensing deal, and a chip supply agreement.

Intel shares rose about 3 percent on the news in extended trading after closing with a 0.8% gain. Apple is due to report its quarterly results on April 30 while Qualcomm is scheduled to release its numbers on May 1. Qualcomm owns a number of patents governing the way cell-phone modems connect to cellular network infrastructure, among other things. Smartphone maker Apple and chipset manufacturer Qualcomm has announced that the companies are settling their lawsuits. In 2016, Apple refused to pay the fees while Qualcomm refused to pay Apple the $1 billion called for in its agreement.

Then past year, as Apple's legal battle with Qualcomm heated up, Intel became Apple's sole supplier for 4G wireless chips in the iPhone.

Proceedings between the two companies began Monday in federal court in San Diego.

The agreement also ends the possibility of widespread iPhone sales bans; an initial verdict in Qualcomm's favour could have forced iPhone 7 and iPhone 8 from shelves in Germany.

Apple gets to break its dependence on a single chip maker and Qualcomm gets to do business with a large customer.

Qualcomm's share price surged 23.2 per cent, its biggest gain in more than 19 years, while Apple's stock ended its day flat.

As part of the surprise settlement, Apple has entered into a six-year supply agreement with Qualcomm with an option for another two.

Qualcomm stock soared as much as 22% following the settlement.

Other estimates vary, but basically they all say 5G should be really fast compared to what we're all used to.

Nor can we realistically expect to see a 5G iPhone in 2019, given the timescales involved, and Apple's historical reluctance to cut itself on the bleeding edge of new technology. The decision allowed Apple to concentrate on making touchscreen computers and helped turn marketing genius Steve Jobs' project into the most valuable company on Earth.

Comment The dramatic peace treaty between Apple and Qualcomm is good news for iPhone buyers, but raises questions about the market's ability to produce a viable competitor to the 5G leader - at least in the short term.

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