Qualcomm, the largest factoryless developer of cellular modems and chips for cellular base stations, announced its results for the first quarter of 2019. Among other things, the quarterly report revealed how much Apple will pay Qualcomm for two years of litigation. Let us recall that the dispute between the companies arose in January 2017, when Apple refused to pay the modem developer licensing fees for each product released with a Qualcomm modem. Sum , the company reported, $4,5–4,7 billion. This money will be a one-time payment that will fall into Qualcomm accounts in the second quarter of the 2019 calendar year (until the end of June).
It is interesting to note that in the second quarter (for Qualcomm this will be the third quarter of the 2019 fiscal year), the company expects to earn almost as much as it will receive from Apple: from $4,7 to $5,5 billion. Income from licensing payments for this period is expected in the range from $1,23 to $1,33 billion, which already takes into account the estimated amounts of licensing revenues from Apple. True, it remains to be seen how well the Cupertino company’s smartphones will sell all this time, and with sales in China everything is very, very ambiguous. For example, analysts believe that licensing fees for the specified period will be less - no more than $1,22 billion. These and other concerns led to the fact that at the end of the day yesterday, Qualcomm shares lost 3,5% per share. This is despite the fact that Qualcomm expects huge cash flows from Apple.
As for Qualcomm's financial results in the period from January to March 2019, the company's revenue amounted to $4,88 billion, or 6% less than in the same quarter last year. At the same time, sales of modems and chipsets for cellular base stations brought the company $3,722 billion, or 4% less than a year ago. Compared to the previous quarter, revenue in this area did not change. Revenue from licenses amounted to $1,122 billion, which is 8% less year-on-year and 10% more than in the fourth quarter of calendar 2018 (quarter-on-quarter).
Qualcomm's quarterly net income for the year increased 101% from $330 million to $663 million. On a quarterly basis, net income fell 38%. Then everything will depend on Apple. It will become the largest donor of royalties for Qualcomm. Everything will be fine for Apple, everything will be fine for Qualcomm. By the way, Qualcomm itself expects a surge in smartphone sales only by the end of this year, when quite a lot of 5G networks will be deployed. In the meantime, consumers see no point in buying devices with 5G support.
Source: 3dnews.ru