Qualcomm expects to get $4.5
When Apple and Qualcomm unexpectedly settled their long-standing legal feud on the day opening arguments were supposed to begin in court, the companies did not disclose the amount that Apple was paying Qualcomm to end their war once and for all.
Now, thanks to Qualcomm's Q2 earnings report, we know that Qualcomm expects to get $4.5 - $4.7 billion from the settlement — a financial boon for Qualcomm, that costs cash-rich Apple relatively little.
SEE ALSO:What Apple and Qualcomm's settlement means for the 5G iPhoneApple and Qualcomm had been engaging in a tit-for-tat fight in the courts over what Apple argued were exorbitant royalties that Qualcomm was charging Apple for the use of its chip technology, on top of the price of the actual chips. In a surprise settlement, The companies agreed to end all legal action, worldwide, on April 16. The settlement included a six year licensing agreement, "multi-year" chip supply, and a cash payment from Apple, the amount of which the companies did not specify.
Qualcomm's Q2 earnings report gives us an idea of the price Apple is paying for peace — and its 5G future. Qualcomm's released its Q2 earnings report Wednesday, which included projected one-time cash revenue of $4.5 - $4.7 billion from the Apple settlement. Qualcomm says that figure is not set in stone, since it includes cash payment as well as the release of money that Qualcomm has to pay Apple. But it is reporting the number as revenue, or cash, that it expects to receive from Apple.
"While we continue to assess the accounting impacts of the agreements, our financial guidance for the third quarter of fiscal 2019 includes estimated revenues of $4.5 billion to $4.7 billion resulting from the settlement (which will be excluded from our Non-GAAP results), consisting of a payment from Apple and the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities," the report reads.
This is pretty dang huge for Qualcomm. Last quarter, Qualcomm earned $5 billion in revenue. The settlement effectively doubles their earnings for Q3. $4.5 billion is big money for Qualcomm.
So what's it costing Apple? The settlement shows that, among tech giants, the word "billions" is relative. Even in a down quarter, Apple still made $225.4 billion in cash in Q2. That means that, even if the majority of the ~$4.7 sent to Qualcomm is cash direct from Apple, that's about 2 percent of its quarterly revenue. Think Tim can spare it?
Qualcomm's earnings report also indicates that the licensing agreement might not have been as big a win for the company as the cash payment. Although revenue for Q3 is expected to double from 2018, the New York Times points out that the projections indicate that Apple is not necessarily paying more in licensing than it was before.
While we can't say for sure, perhaps Qualcomm made out with cash in the short term, so Apple could get chip supply and licensing agreements for its 5G iPhones that it could live with. After all, Apple's projected revenue for Q3 was pretty much unaffected by the loss of that five bil. Must be nice!
Featured Video For You
What is 5G? — Clarification Please
(责任编辑:新闻中心)
- SpaceX Polaris Dawn mission: How to watch the launch
- 乡村工匠黄苑诗: 让潮汕金漆木雕“繁花”盛开
- Serena ‘absolutely’ had doubts about competing again
- Brett Kavanaugh's use of the word 'emotional' exposes a gross double standard
- [Graphic News] Average book price nears 20,000 won
- Apple to start manufacturing iPhone Pro in India, report claims
- 避让路上石头 面包车客车相撞
- Qatar officials target 'price
- Melania Trump explained what her 'I don't really care' jacket meant
- Pragmocracy Now
- In her first official statement, Kim's sister slams South Korea
- “诸葛亮七擒孟获”留下民间传说
- Mark Zuckerberg's statement from Facebook is missing one major thing
-
Apple Watch bands: 5 favorites to consider as Apple Watch 10 looms
It's almost new Apple Watch season, which means it's potentially almost time for you to pick out whi ...[详细] -
Here's a comprehensive breakdown of the 16 'CS:GO' teams in the ELeague Major
The first Counter-Strike: Global OffensiveMajor of 2017 is coming up in January, and all 16 teams ar ...[详细] -
Gov't to provide support for over 500 North Korean defectors facing tough living conditions
The government will provide additional assistance to more than 500 North Korean defectors deemed to ...[详细] -
Star Trek Discovery casts Sonequa Martin
Star Trek: Discovery has found its lead.It's Walking Deadactress Sonequa Martin-Green, Mashablehas c ...[详细] -
Scout Brobst ,July 30, 2024 Venture Missio ...[详细]
-
When you're in the self-described business of bribing politicians and influencing elections, it's pe ...[详细]
-
Google Assistant now lets you send money to friends via Google Pay
The Google Assistant just learned another new trick: Sending money to your friends.The new peer-to-p ...[详细] -
The 'Saved by the Bell' diner is coming to a city near you
After decades of waiting, Americans everywhere can finally head to the Max after school.Earlier this ...[详细] -
Ford can make your Mustang Mach
One of the first big tricks Tesla pulled from its sleeve was when it started offering over-the-air u ...[详细] -
Watch YouTubers give classic holiday songs a festive twist
YouTube artists are singing for Sing.Mike Tompkins, Karmin, UsTheDuo, Chloe x Halle, KRNFX, Peter Ho ...[详细]