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$4.5 billion: that's how much Qualcomm will be getting at least from Apple

By Kenny Yeo - on 2 May 2019, 10:17am

$4.5 billion: that's how much Qualcomm will be getting at least from Apple

(Image source: Qualcomm)

In a surprising twist of events earlier last month, Apple settled with Qualcomm, and Intel abruptly announced that it would exit the 5G modem business.

At that point, we only knew that Apple would pay a fee to Qualcomm and that the two have agreed on a six-year licensing agreement with an option to extend for a further two.

We didn't know how big that fee was but some analysts believed that it could be as high US$6 billion. Now, however, we know that the amount was considerably smaller but still significant.

In its quarter earnings release today, Qualcomm revealed that it would receive "US$4.5 billion to US$4.7 billion resulting from the settlement of our prior dispute with Apple."

For any other company, this would have been a huge blow. But according to CNBC, Apple currently has a cash hoard in excess of US$225 billion. In addition, its recent earnings report showed that its service department is doing very well.

Source: Qualcomm

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