Apple’s Truce with Qualcomm Remedies Path to 5G iPhone

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By David McQueen | 2Q 2019 | IN-5480

 

Apple and Qualcomm Patent Fee Feud Settled

NEWS


Qualcomm and Apple have finally settled their two-year court battle and signed a new patent license agreement. Few financial details of the settlement are available, but it includes a six-year patent license deal between the two companies and a multi-year agreement for Qualcomm to supply smartphone modems for iPhones, notably 5G, that will ramp up over time. Apple will also make an undisclosed payment to Qualcomm, which is likely to cover owed patent fees from the past two years.

Qualcomm Set to Lead 5G Smartphone Modem Market

IMPACT


Putting aside the six-year patent licensing agreement for a moment, the most important aspect of the settlement is that Qualcomm will become a key supplier of 5G modems to Apple for its future generation of iPhones. In previous years, Apple has followed its usual mantra of having more than one supplier for the majority of its components for iPhone, which lowers supply risk and reduces costs, and in the case of the modem it had been using those from both Qualcomm…

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