What was the big deal with AAPL and QCOM

These guys have been on each other's throat for the last 3 years now. With the swords back in the sheath they have agreed to call it peace.

 

After a settlement between QCOM and AAPL both companies can focus on the important issues. AAPL has products to ship with

5G modems and Qualcomm has to focus on execution to maintain the lead in 5G space.

 

The 5G generation in mobile communications is currently in the roll-out phase,

so that it can be assumed that profits and cash flows will increase in the foreseeable future.

 

Due to the lawsuits the gross margin of QTL business had falled from high seventies to mid fifties. Hopefully with this matter at the back

QTL will return to the high seventies gross margin again.

 

QCOM needs to make sure the adjacent opportunities are being worked upon. They have the 82cx chip out for always on Laptops.

QCOM will have to make sure that it gains traction with top Laptop manufacturers.

 

Resolution of this current licensing disputes with Apple should

also prevent further license disputes and legal disputes with other Licensees. QCOM would

be working on the resolution with Huawei although they have an interim agreement in place.