After Apple and Qualcomm had long been hostile to each other in court, both companies surprisingly made peace two weeks ago. Now we know the price of that peace.
Any apology comes across even better when it's delivered along with a bunch of money. This also applies to the agreement between Apple and Qualcomm. As the figures recently published by Apple show, the company from Cupertino is paying the chip manufacturer around $4.5 billion.
With this settlement payment, Apple enters into a worldwide patent license agreement for the next six years, with the option to renew for a further two years. The money is therefore independent of future license fees Apple will continue to pay for the use of Qualcomm chips in iPhones and iPads.
According to Bloomberg, the agreement between Apple and Qualcomm had one main reason: the chipmaker Intel, who supplied the modems for the latest iPhone models, was not fast enough to provide a suitable chip for a 5G iPhone. That's why they preferred to bite the bullet and reach an agreement with Qualcomm instead of falling behind on schedule at this point.
If you're wondering what this $4.5 billion means to Apple: According to a recent report by Bloomberg and published by CNBC, the company currently has around $225.4 billion in cash on hand, almost 50 times the settlement amount.
Via: The Verge