This week on Tuesday, Apple and Qualcomm unexpectedly dropped their lawsuit over the licensing of the chipmaker's patents. , under which Apple will pay Qualcomm a certain amount. The companies chose not to disclose the size of the deal.
The parties also entered into a patent licensing agreement. According to a UBS research note reviewed by AppleInsider, the deal was extremely profitable for Qualcomm.
While Qualcomm has remained tight-lipped about how much it will make from Apple, other than an expected $2 increase in shares next quarter, UBS analysts expect Apple to pay the chipmaker royalties of between $8 and $9 per device. This is a significant achievement for Qualcomm, which previously expected to receive a royalty of $5 per device from the Cupertino company.
The per-item fee does not include Apple's "one-time debt payment" for the past period, which UBS estimates to be between $5 billion and $6 billion.
Qualcomm's return to Apple's modem supply chain in 2020, as well as Intel's withdrawal from the 5G smartphone modem market, prompted UBS to increase its valuation of Qualcomm. The firm set a Neutral rating on Qualcomm shares, but raised its 12-month share price target from $55 to $80 per unit, slightly above Qualcomm's current share price of $79 per share at the time of publication.
Source: 3dnews.ru