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Apple and Qualcomm settle billion-dollar lawsuit

April 17, 2019 5:13 am

Tech giants Apple and Qualcomm have agreed to settle all ongoing lawsuits, putting an end to a long-running battle with billions of dollars at stake.

“All litigation between the two companies worldwide” has been dropped, the firms said in a joint statement.

The surprise settlement brings an end to a long-running battle over the cost of the processors that phones use to connect to mobile networks.

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Apple accused chip-maker Qualcomm of overcharging, a claim the firm denied.

The settlement includes a payment from Apple to Qualcomm, but the firms did not disclose its size.

The two firms have also agreed a six-year global patent licensing agreement and also agreed for Qualcomm to supply parts to Apple for multiple years.

This means that Qualcomm’s modem chips are likely to be used again in Apple’s newest iPhone models. The iPhone used to rely entirely on Qualcomm’s chips, but from 2016 Apple started using rival Intel’s modem chips in some models.

Shares in Qualcomm surged 23% after the announcement, while Apple’s remained flat.

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