Apple and Qualcomm met each other in court this week in what was supposed to be a brutal trial. Turns out that wasn’t the case, as the two companies surprisingly agreed to a settlement yesterday. This means three things.
Firstly, the settlement ends all ongoing legal action across the board—from Apple, Apple’s manufacturing partners, and Qualcomm. While it’s unclear why the two suddenly decided to settle, it’s very likely that neither wanted company secrets made publicly available in court. The longer the trial would’ve gone on, the more likely that would’ve been. Makes sense.
Secondly, Apple will pay Qualcomm an “undisclosed amount,” along with royalties going forward. The companies have also reached a six-year patent licensing agreement with the option to extend it an additional two years, as we as a multiyear chipset deal. In other words: it’s really a win for both companies…but mostly for Qualcomm.
Third, this puts Intel out of the 5G game completely. There’s been a lot of banter about Apple’s lack of confidence in Intel to provide the company with the 5G modems required for a 5G iPhone, which is likely another reason the company decided to settle.