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Apple-Qualcomm End Their Legal Battle to Reach Settlement

Following a year of long legal battle between these two large corporations – Apple and Qualcomm, a final resolution to dispute is in progress to close the deal. Shares of Qualcomm were up more than 10% after the corporation announced the deal. The topic causing the dispute was due to Apple claimed that Qualcomm was taking advantage for their role as dominant supplier by charging high prices for its patent. Moreover, Apple has stopped paying its contract manufacturers, fees, and royalties to Qualcomm in the amount of multibillion-dollar.

The reason why Apple has been cooperating with Qualcomm, is because for a long time, Qualcomm has been a dominant supplier in the wireless chip business for smartphones. There is concern that Apple is facing dependency on a single supplier. To cope with that, Apple has worked with Intel for being Apple’s sole supplier to expand its 4G wireless chips in the iPhone and offered Intel a significant share of its business. The corporation between Apple and Intel continued until Intel was working to develop 5G wireless chips to use in future versions of the iPhone. Following recent findings, Intel could not provide the commitment to supply the 5G wireless chips on time. This has placed Apple in uncertain position due to the competitors of iPhone would be able to offer 5G capabilities using Qualcomm chips, while Apple and Qualcomm are still facing the legal battle. Following these challenges, these two companies – Apple and Qualcomm has finally reached a settlement. The day after the legal battle has ended with Apple, Qualcomm’s CEO stated that he looked forward to working with the iPhone maker, but he would not disclose the price that Apple agreed to pay.

Despite the legal battle, both of these corporations are now focused to work on their products. The stock of Qualcomm spiked up more than 10% on Wednesday following a 23% rally on Tuesday after announcing the settlement to its multibillion-dollar battle with Apple. The chip maker’s stock price settled at $70.45 after opening at $57.46



Ars Technica


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