The two companies reached a six-year patent licensing agreement, effective from the 1st of this month, including the extension of the two-year option. In addition, the two sides also reached a multi-year chip purchase agreement.
The sudden reconciliation between the two companies surprised the industry. Prior to this, the two companies had differences on whether to negotiate. In the past two years, Apple has publicly stated that Qualcomm's technology is "worthless."
But Apple’s internal memo, which Qualcomm showed earlier in court earlier this week, shows that Apple’s hardware executives use the best to describe Qualcomm’s engineering. In addition, Apple said in another memo that Qualcomm has "a large number of patents" and "unique patent share."
In any case, the two companies have now reached a settlement. As for the specific settlement amount, the two companies did not disclose. According to UBS analyst Timothy Acuri (Timothy Arcuri), Apple could pay $5 billion to $6 billion to Qualcomm.
In addition to a one-time payment to Qualcomm, Apple and Qualcomm also reached a six-year patent licensing agreement with a two-year extension option, which will take effect from April 1 this year. Akuri expects each of AppleiPhoneA license fee of $8 to $9 is required to be paid to Qualcomm.
But the two companies agreed in 2007 that Apple would have to pay Qualcomm $7.50 per iPhone. Even for $7.50 each, Apple's CEO, Tim Cook (Tim Cook), still feels too high.
Cook, who took over from Steve Jobs (Steve Jobs) as CEO in 2011, was shocked to find that Apple paid Qualcomm more than all the other iPhone licensing fees combined, CNBC reported on Wednesday. To that end, he decided to make changes that eventually led to a patent battle between the two companies.