How much is an apology worth? Well, if you're Apple, it turns out that the amount is at least $ 4.5 billion, which is the amount that Qualcomm revealed in its second quarter earnings that you will get from the settlement agreement between the companies, which had previously been involved in a ugly patent. dispute over the past years.
The Apple / Qualcomm agreement was an unexpected change that occurred at the beginning of the trial between the two companies. According to a report from Bloomberg Apple had decided that Intel modems (which Apple had been using exclusively in the meantime due to their fight with Qualcomm) would not be ready in time for an iPhone 5G, Apple leader. to pay the recently disclosed amount of between $ 4.5 and $ 4.7 billion to compensate with Qualcomm. That amount of money is separate from any future royalty that Apple will pay to use the Qualcomm chips on their devices as well.
As for Apple, its billions have bought the company a global patent license agreement for six years with Qualcomm, with the option of extending it for another two years, ending the legal fights with the chip company around the world and earning Qualcomm services as a parts supplier for future devices. That's fundamental for Apple, since with Intel's retirement from the 5G modem market for phones, Qualcomm is essentially the only game in the city, until Apple starts producing its own.
"We are also pleased to have reached several years." Agreements with Apple and we hope to continue supporting them as customers, "says a statement from Qualcomm's CEO, Steve Mollenkopf.
In case you're wondering how much is really $ 4.5 billion for Apple, CNBC reports that Apple now has approximately 50 times that amount – $ 225.4 billion – of cash available alone.