Apple pays Qualcomm around $4.5 billion for settlement

Apple will pay Qualcomm between $4.5 and $4.7 billion as part of the settlement of the lawsuits between the two companies. The hardware maker and chip designer previously announced that they had reached a settlement, but not how much Apple would pay.

Qualcomm lists the amount as a footnote in its quarterly figures. It also shows that Huawei is negotiating a license with Qualcomm and is already paying $150 million per quarter while those negotiations are ongoing. Apple and Qualcomm announced the settlement two weeks ago and that agreement also means that the chip designer will again supply modems for iPhones. They are now from Intel.

It wasn’t all good news for the chip designer in the quarterly results. The deliveries of his socs have been declining for years. Where Qualcomm delivered 187 million socs in the first months of 2018, this year there were 155 million, a decrease of 17 percent. That decline is due to the decline in the smartphone market as a whole and due to an increasing share of Huawei, which designs its own socs and modems.

Qualcomm had revenues of $5 billion in recent months, a 5 percent decline from the same quarter last year. Operating income came in at $900 million, much higher than $400 million a year ago.