Qualcomm Will Pocket Almost $5 Billion from Apple Settlement this Quarter:
Qualcomm will make nearly $5 billion in the current quarter from the settlement of its licensing dispute with Apple.
During its quarterly earnings report on Wednesday, the mobile chipmaker said it will record revenue of about $4.5 billion to $4.7 billion from Apple in its third fiscal quarter, which ends in June. That includes a cash payment from Apple and the release of money it had to reserve to pay or refund Apple and the contract manufacturers for certain customer-related liabilities.
Overall, Qualcomm's third-quarter revenue should total $9.2 billion to $10.2 billion, a 65% to 83% jump from the previous year when Apple wasn't paying Qualcomm's licensing fees.
"We believe the settlement is a win for both companies, and we are pleased with the result and pleased to have it behind us," Qualcomm CEO Steve Mollenkopf said during a call with analysts. "We are committed to a strong partnership with Apple."
Apple and Qualcomm last month settled their patent licensing battle, ending a two-year dispute the day after their trial kicked off in San Diego. The two sides announced the surprise agreement through a joint press release at the same time lawyers were presenting their opening arguments in a courthouse in Southern California. Apple and its contract manufacturers had given their statements, and Qualcomm's head lawyer had nearly finished his remarks when the courtroom buzzed with the unexpected news.
Excluding that benefit from Apple, though, Qualcomm expects its third-quarter revenue to slide from the previous year's $5.6 billion by as much as 16%. It cited a slowdown in the handset market, especially China. Qualcomm expects third-quarter revenue, excluding the Apple payment, to total $4.7 billion to $5.5 billion. Analysts polled by Yahoo Finance expected sales of $5.08 billion.
Know when to hold 'em, know when to fold 'em.
(Score: 2) by bob_super on Friday May 03 2019, @06:26PM
Apple vs Qualcomm ? I'm rooting for major injuries, with infections.