Qualcomm sees up to $4.7 billion payment from Apple deal

SAN FRANCISCO: Apple Inc will pay Qualcomm Inc $4.5 billion to $4.7 billion to catch up on licensing fees accrued during a two-year legal battle between the companies settled last month.

Qualcomm made the disclosure in its earnings report on Wednesday, while Apple declined to answer questions about the settlement during its own second-quarter earnings conference call on Tuesday. The figure was less than the $7-billion Qualcomm claimed Apple owed.

Apple had accused its former chip supplier of using a strong position in cellular modems to force the payment for artificially inflated technology licensing.


The two reached a settlement April 16. In addition to Apple’s one-time payment to Qualcomm, the companies said they negotiated a multiyear agreement for Qualcomm to sell chips and licence its technology to the iPhone maker in exchange for royalty payments.

Analysts and investors want to know what Apple will be paying the chip maker on an ongoing basis and whether it has secured a discount compared with what is paid by other phone makers, such as Samsung.