14 DAY TRIAL // Just when everyone thought that nothing can bring Apple and Qualcomm back together, the two companies announced a historic settlement of their global patent dispute.
Apple says both firms agreed to drop all litigation, including with Cupertino’s contract manufacturers. At the same time, the two reached a global patent license agreement and a chipset supply agreement.
“Qualcomm and Apple today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement,” Apple announces.
In plain English, here’s how the collaboration between Apple and Qualcomm is going to work from now on.
Qualcomm modems on iPhones
First, Apple will pay Qualcomm an undisclosed amount for its patents. While no numbers were shared, Apple and its suppliers previously withheld approximately $7 billion in patent royalties, but there’s a chance the sum could be smaller as part of the settlement.
Then, the chipset agreement technically means that Apple will once again use Qualcomm chips on the iPhone. Previously, the company dropped Qualcomm modems and switched to Intel exclusively, so beginning with the 2020 generation, there’s a high the San Diego-based chipmaker returns as the main supplier for the iPhone.
One of the reasons behind this settlement could be Intel’s failure to develop a 5G modem. Without such technology, which Intel promised to launch next year, Apple would be late to the 5G push, and this is already gaining more traction across the world.
Qualcomm, on the other hand, is already a pioneer of 5G modems, so it can help Apple bring a 5G iPhone to the market much faster, possibly as soon as 2020.
For now, the settlement between Apple and Qualcomm appears to be a huge blow to Intel, but on the other hand, can only be good news for the iPhone. Further details are expected to be shared in the coming months as the collaboration between the two companies advances.