Intel drops out of 5G market

Huawei talks of selling its 5G chips to Apple | Article

Huawei talks of selling its 5G chips to Apple | Article

Qualcomm also held another bargaining chip: It makes the modem chips needed for future smartphones to work with the next generation of high-speed wireless networks known as "5G". This means that the pair will stop any further litigation (as far as this particular matter is concerned).

The settlement came a day after a trial in San Diego over the royalties began.

Effective immediately, all litigation between the two companies has been dropped, and the two have signed new patent license and chip supply agreements.

This means that Qualcomm's modem chips are likely to be used again in Apple's newest iPhone models. Per the public details of the Apple-Qualcomm settlement, the two companies have entered into a six-year licensing agreement and multi-year chipset supply agreement.

Qualcomm stock soared as much as 22% following the settlement. The Federal Trade Commission sued Qualcomm in January 2017 as well, and over the same complicated reason.

Now that the dust has settled, Apple can start testing a 5G-enabled iPhone with Qualcomm's latest and faster modems. Qualcomm countered that Apple reneged on its contracts.

"Ultimately, Apple realized this was more about two kids fighting in the sandbox and they have bigger issues ahead with 5G and iPhone softness versus battling Qualcomm in court", Wedbush Securities analyst Daniel Ives wrote in Tuesday research note. Apple has famously built its brand around being willing to do what it thought was right rather than kowtowing to market demand, but the company may not be willing to be the only brand not selling a 5G phone at a time when carriers and manufacturers are salivating to provide them.

The epic legal battle started in January 2017 when Apple sued Qualcomm for almost $1 billion. As a result, the face of the cellular modem market is changing in an instant, as Apple's shift in allegiances will have repercussions throughout the industry. For example, in one case, Qualcomm asked a USA federal judge to ban the sale of iPhones.

"Even when Apple sells an iPhone with added memory-256GB instead of 128GB - Qualcomm collects a larger royalty just because of that added memory", according to the company, which claims it has been overcharged by "billions of dollars". The company had been working on 5G chips for Apple, but the chips were not expected to arrive until 2020 at the earliest.

During jury selection, U.S. District Judge Gonzalo Curiel quizzed the former baseball player, identified only as Juror No. 9, about a proposed class-action lawsuit over pay for minor league players that would have included him.