Apple (AAPL) and Qualcomm (QCOM) have reached an agreement about the global royalty disputes. The companies announced the deal on Tuesday evening but did not closed any price details.
According to the deal, Apple is to make an onetime payment to Qualcomm and part of the deal is that the companies have also reached a six year license agreement. Qualcomm commented that this agreement will increase its earnings by 2 dollars per share when the shipments of chips to Apple starts.
After the news, the share price of Qualcomm jumped and closed up 23,21 % to 71,76 dollars. The share price of Apple was up slightly, closing 199,23 dollars.
Recent studies by CTA show that the 5 G enabled smartphones will reach 2,1 million units and 1 billion dollars revenue this year. According to the research by 2022, 76 % of all the smartphones will be 5 G enabled. It is expected that the rise of the 5 G in the US markets have fueled the companies to reach the deal.