This is How Much Qualcomm is Expecting from Apple

Qualcomm and Apple settled a long going dispute last month over how much the latter should pay the former for intellectual property required to connect to cellular networks.

It turns out Qualcomm is expecting Apple to shell out at least $4.5 billion as part of the settlement.
Qualcomm said on Wednesday that it expects between $4.5 billion and $4.7 billion in revenue.

The agreement included a one-time payment, a licensing deal between the two companies and Apple also said it would buy Qualcomm chips.

The details of the settlement were disclosed in Qualcomm’s second quarter financial report.

“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,” said Qualcomm.

Shares of Qualcomm have rallied over 40% since the settlement on April 16th. Apple stock is alsp up over 5% since that time. Apple just reported its own better than expected earnings report.

Qualcomm CEO Steve Mollenkopf declined to answer questions about the settlement’s size during the time of the settlement and said, “Well, a deal like this, there’s a lot of value back and forth, and it’s just best to keep it confidential.”

Disclaimer: We have no position in QUALCOMM, Inc. (NASDAQ: QCOM) nor Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.