One of the biggest pieces of news about Apple this year was the settlement with Qualcomm. The two companies have agreed to stop litigation, and will be working together in the future. As far as Apple CEO Tim Cook is concerned, this is good news.
While discussing the latest quarterly earnings report, Cook took some time to talk about Qualcomm and the settlement. Specifically, Cook said they are “glad” to put the “litigation behind us”, and that goes for the global legal battle between the pair of companies as well. Not just in the United States. Moving forward, Apple has a multi-year supply agreement in place, and Apple is “happy” to “have a direct license arrangement with Qualcomm”.
Finally, Cook added, “We feel good about the resolution”.
Apple’s plans with Qualcomm aren’t public knowledge right now. However, it has been rumored that Apple will be tapping both Qualcomm and Samsung to handle 5G modem demands by the time 2020 rolls around. That is the year Apple is expected to launch its first 5G iPhone. It’s worth noting that Cook did not confirm this to be the case at all, though. Not that he would.
As far as money goes, Apple reportedly paid upwards of $6 billion to reach the settlement with Qualcomm. Just for fun, and to compare that to Apple’s latest quarterly earnings: Apple earned $58 billion in the quarter. The company’s Wearables, Home, and Accessories category earned $5.1 billion on its own. And Services? Well, the Services division earned a new all-time high of over $11 billion.
That $6 billion is quite the tidy sum, but one that Apple no doubt was very willing to pay.
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