It only escalated from there-Apple was accused of telling its suppliers to withhold royalty payments from Qualcomm, which attempted to bar iPhone imports around the world, and so on. News of the surprise truce Tuesday sent Qualcomm stock soaring more than 23 percent, to almost $70.50 a share.
A SHOCK SETTLEMENT between Apple and Qualcomm has forced Intel to exit the 5G modem market. Most people probably expected Apple and Qualcomm to settle, but the timing of the deal was somewhat surprising, considering the trial had just started. In addition to paying for the chips, Apple was supposed to pay Qualcomm a licensing fee based on the chips' underlying patents.
Intel has announced that it is to leave the 5G smartphone modem business and will assess the opportunities for 4G and 5G modems in PCs, as well as data-centric and IoT devices.
On one side, Apple said Qualcomm was abusing its market position and charging exorbitantly high rates for its technology.
Apple's litigation chief Noreen Krall chatted privately with Qualcomm attorney Mark Snyder before Judge Curiel called the jurors back into the courtroom.
Apple alleged that Qualcomm engaged in illegal monopolistic patent licensing practices for its premium cellular modem chips for smartphones.
According to Apple, Apple and Qualcomm reached a six-year license agreement starting on the first of April, 2019 - and that's no joke.More news: Real Madrid target Mane assures Liverpool: I want to be a legend
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The biggest victor of this settlement is Qualcomm.
The news yesterday that the massive, multi-billion dollar legal fight between Apple and chip maker Qualcomm has come to an end has big-time ramifications for Apple - and for the rest of us who use smartphones every day (heck, nearly every minute of every day).
The surprise truce announced Tuesday came just as the former allies turned antagonists were facing off in a federal court trial that was supposed to unfold over the next month in San Diego. Apple CEO Tim Cook contradicted him shortly after, saying that Apple hasn't been in settlement discussions since the third calendar quarter of 2018.
Shares of Intel were up 2.7 percent at $58.25 in after hours trade.
In February this year, Intel advised Apple that it would not have 5G modems until 2020.
Apple released the news via Business Wire today.
As long as the dispute was ongoing, Apple was likely going to have to use chips from Intel, and Intel is reportedly "behind schedule" on producing a 5G chip.