Qualcomm news about the company’s legal battle with Apple (NASDAQ:AAPL) has QCOM stock flying high on Wednesday.
The news about the legal battle between the two companies is that they are agreeing to drop all litigation around the world. This brings an end to a long and drawn out fight that Qualcomm (NASDAQ:QCOM) and Apple have been going through.
According to a Qualcomm news release about the decision, Apple will be paying the company a settlement fee. The company notes not reveal how much the amount of this settlement is.
It’s also worth noting that this release includes another positive bit of Qualcomm news. This is that the company has signed a new six-year agreement with Apple. There’s also an option for a two-year extension and a multiyear chipset supply agreement.
The agreement between Qualcomm and Apple is effective as of April 1, 2019. This agreement will have Apple paying the company royalty fees for the use of its components in AAPL devices. This is good news for QCOM stock as the company says it is now expecting incremental earnings per share of $2.00 as as product shipments ramp up.
Now that Qualcomm and Apple have put their disagreements behind them, it opens the way for a 5G iPhone. Previous rumors were claiming that the tech company wasn’t going to be able to release a 5G iPhone until 2021, but that will likely change with access to QCOM’s modems.
QCOM stock was up 10% and AAPL stock was up 1% as of noon Wednesday.
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As of this writing, William White did not hold a position in any of the aforementioned securities.