Earlier this week, Apple and Qualcomm reached a settlement to end global lawsuits and resume cooperation. Apple is known to have paid Qualcomm a settlement, but both companies are tight-lipped about it. Now, analysts are trying to measure the details of the deal.
UBS analyst Timothy Arcuri said in today's investor report that as part of the settlement agreement, Apple may have paid Qualcomm between $5 billion and $6 billion. According to previous reports, Apple and its suppliers have been withholding Qualcomm's royalties for unreasonable fees, which could exceed $7 billion.
In addition, UBS estimates that Apple will also pay Qualcomm a patent royalty of $8 to $9 per iPhone, and if so, the new agreement is even higher than the previous licensing fee of $7.5 per iPhone, which is clearly in Qualcomm's favor.
The revamped partnership is hard to determine who wins. Apple can successfully acquire and use a high-tech 5G baseband chip, but the $8-9 patent royalty may also be the cause of the next conflict of interest.
These are all based on analysts'estimates, and we may be able to read more about the impact of the deal through Apple's later quarterly earnings.