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Qualcomm outlines Apple licensing deal

May 3, 2019

By Chris Forrester

Chipset giant Qualcomm, which last week said it had settled its long-standing dispute with Apple, further explained how the two players would be working in the future.

Qualcomm’s CEO Steve Mollenkopf, speaking to analysts following the company’s Q2 results, said the agreement covered two long-term elements: “A global patent licence agreement and a multi-year chipset supply agreement. The settlement also includes a one-time payment from Apple to Qualcomm.”

Mollenkopf added: “The term of the global patent licence agreement is for six years with an option for Apple to extend for an additional two years. This represents a significant milestone, as it is Qualcomm’s first patent license agreement directly with Apple. In addition, we believe our resolution with Apple enhances our position with respect to resolving our ongoing licensing issues with Huawei.”

“We will also be supplying modems to Apple for future devices under the terms of our new multi-year chipset supply agreement. In the long term, we will also have the opportunity to provide Apple with other Qualcomm technologies and products, to expand our dollar content share in Apple’s products, as we have done with our other handset OEMs. We are committed to a strong partnership with Apple.”

Mollenkopf also addressed 5G and its current status. “I am pleased to report that the rollout of 5G has officially begun. In the last months, we have seen carriers and OEMs announce and launch commercial 5G services and devices in North America, South Korea, Europe, and most recently, China, representing the first global rollout of a new wireless standard. The arrival of 5G in China is particularly exciting as it brings 5G to the largest mobile user base in the world. To-date, the vast majority of the announced 5G devices for China include Qualcomm’s Snapdragon chipsets.”

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