In terms of the agreement, Qualcomm will also discontinue the legal proceedings with contracted Apple manufacturers.
Everything returned to its place, moreover, the AppleInc will continue to use the modem chips of Qualcomm, but before that, will pay the compensation or the initial payment. The status isn't clear yet.
This is a large victory for Qualcomm. Its shares jumped up to 23%, to $70.45. It is their biggest growth in their last 19 years!
Since last year, Apple has relied exclusively on Intel chips. The shares of Apply have slightly grown, gaining 2 cents to $199.25. The papers of Intel, the main competitor of Qualcomm by the supply of modem chips for Apple, have gone up by 43 cents, to $56.71.
While Intel, probably, will lose a certain part of chips for iPhone, the Intel investors were a bit calmer with a decision, because the modem chips are less profitable than processor chips of Intel and represent a small part of company's profit.
This transaction may help Qualcomm in returning to the leading positions, which the company occupied at the beginning of 2010 when it dominated in the transition to mobile 4G networks and significantly increased their profits.
Qualcomm and Apple didn't say when the new start of supply will begin but it will, and that's the main thing.
By the way, since Intel doesn't expect that the 5G chip for the phones will be ready till the next year, this means that Apple, will probably, be using the chips of Qualcomm.
Does this mean that Apple will refrain from the second Intel supplier?
The policy of Apple is as follows: the company always looks for several suppliers, so it's not a fact that Intel will leave the ship.
As expected, new contracts will bring 2 dollars per share of additional profit.
It's not clear now if the one-time payment of Apply on this transaction represents unpaid royalties for the last 2 years or the first time payment for the future royalties. The companies aren't commenting.
Let's not ignore the moment that this regulation may affect the Chinese company, Huawei Technologies Co Ltd, which is also in dispute about the licensing with Qualcomm.
Of course, Huawei was watching the outcome of Apple case, in order to evaluate their own position during negotiations.