Intel, which is now the sole supplier of 4G LTE modems for Apple's current generation of iPhones and iPads, just announced that it is throwing in the towel on 5G modem development for smartphones. Both have also "reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement".
Apple and Qualcomm have settled a royalty and patent dispute that went to trial this week in San Diego, California.
The settlement came just as the former smartphone allies turned antagonists were facing off in a federal court trial that was supposed to unfold over the next month in San Diego.
An antitrust trial between the United States Federal Trade Commission and chipset manufacturer Qualcomm is now in session in San Jose, California.
Qualcomm stock rose over 15% on the news of the settlement.
The deal with Apple, coming at the cusp of the rollout of high-speed 5G network, could help Qualcomm return to the preeminent position it held in the early 2010s when it dominated the transition to 4G mobile networks and expanded revenues dramatically. Either Qualcomm had evidence so strong that Apple didn't think it would win the case, or Apple needed something only Qualcomm could provide. This means that Apple is not dependent on Qualcomm's modem chips.
Final results of Israeli polls show win for Likud
The results mean Netanyahu is heading for a record fifth term in office and would become Israel's longest-serving prime minister. Commenting on the election, Palestinian chief negotiator Saeb Erekat said: "Israelis have voted to preserve the status quo".
Legal troubles began when Apple started complaining that some of the technology in the patent bundle also is in its chips. Since then, Apple unsuccessfully tried to sue Qualcomm into even better licensing terms-the firm already paid less than all of Qualcomm's other customers for modems-and was forced to use Intel parts exclusively.
Several hours after the deal was announced, Intel said it was withdrawing from the 5G smartphone modem business, without indicating whether its decision was a cause or effect of the agreement its rival signed with Apple.
The company specifically stated that its 2020 5G modem launch is no longer in the pipeline.
It's now clear Apple can choose Qualcomm, Samsung or MediaTek, but given Apple's penchant for doing business with more than one supplier, all three might be in the mix. The dispute concerned the alleged circulation by Apple of confidential information and trade secrets from Qualcomm to Intel.
As part of the settlement, Qualcomm will also end litigation with Apple's contract manufacturers.
Wall Street analysts scrambled to raise their recommendations and price targets on Qualcomm's stock following the settlement.