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Apple and Qualcomm Reach Settlement, Agree to Drop All Litigation
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Funny. Do you think China, South Korea, Taiwan and the EU are in Apples pocket? They all went after Qualcomm over licensing practices. Were they all trying to lower their supply costs too?
LOL. I would love for my company to be up 20% in value in 1 day by "caving". I would cave every day!
All I said was that "Apple wanted something so they stopped litigation".
I said what I meant. You read too much into that statement. It doesn't imply any terms.
Apple may have wanted a reliable modem supply for 5G. I don't know.
I just know they saw something they wanted and a 6 year + 2 year option gives them that at a price they liked.
My statement doesn't say anything more or less.
You are bringing logic and knowledge into an internet discussion. At what point did you expect that to succeed?
My take, from a business viewpoint and not a legal one, is both sides decided an agreement was far mor important than drawn out legal battle whose outcome is uncertain and thus settling was the best course.
that is an interesting but not always true result. Juries can be very unpredictable when it comes to deciding who is right and how much they get.
It’s today’s world. Apple is not alone by any means. Entities such as Apple, Google, Amazon, QC, and thousands of others have the same MO.
The big players attract the most attention. Therefore they appear the most malignant. I don’t see anything changing in our lifetime.
Intel is tanking today. However, I see QC modems in all flagship iPhone for 2019. No 5G until 2020. Intel still supplying for the devices manufactured in India, and if still around this fall the 8/8+.
That’s right, because everyone thought Qualcomm is doomed, and because of the settlement they survive. The market reaction merely reflects the fact that everyone assumed Qualcomm would be decimated.
Wrong. Stock does not jump 20% because nothing bad will happen. It jumped because their earnings adjustment was upward significant due to the influx of that apple settlement cash.
Can I return my iPhone Xs Max with the Intel chip inside for a Qualcomm one now?
No, apple isn't the only buyer for Qualcomm. They sell far more to Android makers. The fact is they increased their earnings significantly upward due to settlement cash. Go ahead and live in the reality distortion field. Reality it isn't. Apple blinked.
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so you are saying 14.5 billion in earnings adjustment upward wouldn't impact apple stock price. That is laughable and someone needs to study markets. (I'm not saying QC got 14.5 billion just your assertion is ridiculous)
as part of the agreement, Apple will buy from Qualcomm? why? Apple knows Qualcomm makes the best Modems and needs them for the next iPhone. Qualcomm also knows its stock value and market base will increase tremendously if Apple agrees to buy their chips
Are you serious?
That does not prove the claim that Qualcomm caved, as you claimed, below.
This is you making assumptions. Plain and simple.
That does not prove the claim that Qualcomm caved, as you claimed, below.
This is you making assumptions. Plain and simple.
Qualcomm didn’t even get through their conspiracy argument before they folded. Really weak argument, kind of looks like Qualcomm wasn’t really prepared.
“Qualcomm had just begun opening arguments when word arrived that a settlement had been reached. The company was alleging that the trial and associated international legal actions were "planned in advance, every bit of it," and was part of a long, premeditated, campaign to weaken Qualcomm, with the goal of hurting it financially.”
The rise is due to Qualcomm's adjustment to their earnings forecast with all that apple settlement money. Apple isn't selling iPhone XS and XR with Qualcomm chips. Therefore, their earnings adjustment is solely based on the settlement check they received from timmy.
Qualcomm said it expected a $2 increase in earnings per share
Yes, in 2020. Unfortunately, we are stuck with Intel for one more cycle.
Apple always had to pay; after all, Qualcomm has patents. The question wasn't whether Apple had to pay, but how much. Whether it was a payment under FRAND terms, or under extortionate terms. Looks like Qualcomm realised that Apple wanted to make fair payments, but not more, and Qualcomm had no chance in court to get what they wanted on top of fair payments.
And of course there had to be a long term licensing agreement, unless either Apple wants to remove Qualcomm from their products, or both companies want to come back to court soon.
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The biggest risk for Qualcomm was that if Apple won this case, that would set precedent for Samsung. There would have been the huge danger for Qualcomm that Samsung starts selling its own chips (currently only used in Samsung devices) to everyone, destroying Qualcomm's business.