The chip maker and iPhone maker did not disclose the details of the settlement agreement. However, the companies revealed that they entered into a six-year global patent license agreement including a two-year option to extend. The technology companies also reached a multiyear chip supply agreement.
A big win for Qualcomm
Gene Munster, a managing partner at Loup Ventures said the settlement is a big win for the chip maker. He told CNBC, “To Qualcomm, I would say, I thinks it’s a testimony to the strength of their IP. Apple really wanted to work around this…I think this is huge win for Qualcomm and really clears Apple to start to focus on next gen tech like 5G.”
On the other hand, Wedbush Securities analyst Dan Ives noted that Apple is going after the intellectual property (IP) dispute with “full steam ahead. He added that the “fears of a loss in the courts was a major overhang” on Qualcomm. The settlement was a “major win” for the chip maker.
Furthermore, Ives commented, “A settlement is a surprise to investors as ultimately Apple realized this was more about two kids fighting in the sandbox and they have bigger issues ahead with 5G and iPhone softness rather than battling Qualcomm in court.”
