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Qualcomm and Apple unexpectedly reconciled to abandon all litigation Qualcomm shares soared 23%

via:华尔街见闻     time:2019/4/17 9:31:47     readed:183

Qualcomm said the settlement with Apple will end all ongoing litigation, including litigation with Apple equipment contract manufacturers. The two companies have reached a six-year global patent license agreement that came into effect on April 1, 2019 and has a two-year extension option. Apple will pay Qualcomm a one-time payment, and the two companies have reached a multi-year chipset supply agreement.However, the above specific amounts are unknown.

At the beginning of this week, Apple and Qualcomm lawyers appeared in the federal court in San Diego, California, in the United States, the case involved 30 billion US dollars in royalties, the plaintiff is Apple and four contract manufacturers, the defendant is Qualcomm. The original market expected the trial of the case to continue until May, and did not expect the two companies to suddenly announce a settlement agreement. The judge told the jury that the agreement would “allow two technology companies to re-start their business”.

According to information disclosed during the trial, Apple paid $16.1 billion and $7.33 billion in patent license fees for Qualcomm chips between 2010 and 2016. Apple's lawyers believe that Qualcomm has used "monopoly power" to force customers to pay twice the "unfair price" since 2013. Qualcomm believes that Apple is "the biggest bully in Silicon Valley", forcing chip makers to accept less. Patent royalties, while ignoring the latter for intelligenceMobile phoneContribution.

The analysis pointed out that reaching a global patent license agreement for at least six years indicates that Apple will pay GI to the franchise fee again.More importantly, the two companies have reached a "multi-year chipset supply agreement"This shows that Apple's futureiPhoneThe phone may once again use Qualcomm's modem chip, and Apple may launch a 5G phone earlier than expected. Qualcomm said that with the increase in baseband chip shipments, earnings per share (EPS) is expected to increase by about $2.

Qualcomm's share price soared,From the 58.08 US dollars before the news rose to 71.03 US dollars, the biggest increase in the day was 24.2%; closed up 23.21% on Tuesday, closing at 70.45 US dollars, the highest since October 8, 2018, US stocks rose 4% after the close.

Financial media CNBC observed that Qualcomm’s market capitalization increased by $14.5 billion to over $84 billion during the stock price surge.And create the best single-day performance of Qualcomm since 1999.

After the news was released, Apple's stock price fluctuated and fell several times. It closed slightly higher and closed at $199.25, which was close to the highest since early November 2018. Qualcomm's competitors, Apple's Intel, which bought baseband chips later, turned short, after rising more than 2%, closing up 0.76% but falling afterwards.

Driven by Qualcomm news,The Philadelphia Semiconductor Index rose more than 3%, hitting a new high in intraday and closing prices. The Nasdaq closed above the psychological barrier of 8000 points for the first time since October 3, 2018.Western Digital data rose 4.8%, AMD, Micron Technology, and Nvidia rose more than 2%, and Lahm Research and Texas Instruments rose more than 1%.

Wall Street’s member-only article has previously pointed out that since Apple’s first lawsuit against Qualcomm in January 2017, Qualcomm and Apple have conducted more than 50 projects in six countries and 16 jurisdictions in the past two years. Judicial proceedings.

Specifically, with the expiration of the patent license agreement signed by Apple and Qualcomm in 2007, Apple began using Intel's modem chips on some iPhones in 2016, and in 2017 led contract manufacturers to refuse to pay royalties to Qualcomm. . Qualcomm accused Apple of stealing its intellectual property and handing it over to rival Intel, repeatedly applying to the multinational court for an import ban on some iPhones.

The analysis generally believes that the dispute with Qualcomm will make Apple, like Nokia of the year, fall behind in the upcoming 5G era.

According to the news in early April, Apple, as the world's leading mobile phone manufacturer, still has not found an ideal solution in 5G - self-developed 5G baseband has not broken, Intel 5G baseband "dropped chain", and Samsung and Qualcomm procurement "rejected" . Apple is afraid to miss the first wave of 5G, and will be able to release 5G phones in 2020. The Android system has released a number of 5G phones this year.

This week, there is news thatHuaweiFounder Ren Zhengfei said in an interview that Huawei is "open-minded" to sell 5G chips and other chips to competitors, including Apple. Currently, Apple has not released a chip that can support 5G devices. This means that if the company wants to release 5G mobile phones this year, Huawei's chips will become an option.

Two years with the apples also made Qualcomm uncomfortable. Wall Street's member-only article "Apple VS Qualcomm" century lawsuit war is about to start: If Apple is defending freedom, then Qualcomm is fighting for life," pointed out that for Qualcomm, once with Apple, the lawsuit will be "high" ", will also determine the fate of Qualcomm's sales of chips and the licensing of more than 130,000 patents, that is, whether its business model is legal:

Apple accused Qualcomm of engaging in illegal patent licensing and seeking damages of up to $27 billion. In addition to the huge compensation, if the San Diego federal court jury determines that Qualcomm abuses its market dominance, it charges excessive license fees from mobile phone manufacturers.Qualcomm may ask it to abandon the business model of patent licensing, which is the source of most of Qualcomm’s profits.

"From an investor's point of view, Qualcomm will be given more attention because a large part of their business is royalties. From Apple's point of view, investors just want to know if Apple can use the latest technology. Shannon Cross, an analyst at market research firm Cross Research LLC, said.

Solving the problem with Qualcomm through this lawsuit may help Apple bring 5G devices to market faster. In the long run, this will also allow Apple to source key components from multiple suppliers. Apple has said it prefers to source parts from a single supplier.

If Apple and Qualcomm reach a solution, Apple will be able to acquire a second source of modem chips and share 5G technology with all other companies.

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