Hot on the heels of Apple’s earnings call, Qualcomm has now also shared its most recent earnings release.
Normally that would make for only mildly interesting reading, but this quarter shows something that’s catching everyone’s eye – a recorded $4.5 to $4.7 billion revenue from a recent Apple settlement.
Both Apple and Qualcomm recently settled their differences soon before a patent issue was due to make its way into U.S. courts, with a licensing deal also signed at the same time. Nobody knew how much that deal was worth, but it looks like Qualcomm’s quarterly earnings have let the cat out of the bag.
The deal appears to have given Apple a much needed route into 5G iPhone manufacturing, with a 6-year deal signed with Qualcomm. That will allow Qualcomm’s 5G chips to be used a time where Apple was becoming increasingly frustrated with the inability of Intel – its iPhone modem partner – to get 5G up and running. Intel has now left the 5G market altogether, leaving the deal with Qualcomm even more important for Apple.
It’s obvious that the new deal between Apple and Qualcomm will be mutually beneficial for both parties, and while Apple isn’t going to have a 5G iPhone ready this year, the ads are good that 2020 will include at least one iPhone with a Qualcomm 5G modem inside. For this year, it’s all Intel and importantly, all 4G.
5G isn’t huge even in the Android world right now, either, and carriers are still getting their ducks in a row. Hardware hasn’t been very forthcoming either, with the Samsung Galaxy S10 5G due to launch soon.
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