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Apple Payment To Qualcomm May Have Reached $4.7B

The payment paved the way for a legal settlement between Apple and Qualcomm after years of litigation.

Apple may have paid as much as $4.7 billion to Qualcomm as part of ending litigation and resuming business between the two companies, Qualcomm disclosed on Wednesday.

The surprise legal settlement in mid-April included a one-time payment by Apple to Qualcomm, though the amount was not revealed at the time.

[Related: Apple May Still Want Intel's Mobile Modem Business]

However, Qualcomm now says it estimates adding revenue of between $4.5 billion and $4.7 billion as a result of the settlement.

The disclosure came in the chip maker’s financial release for its fiscal second quarter, ended March 31.

The settlement figure includes the payment from Apple as well as "the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities,” Qualcomm said.

The agreement ended years of litigation between Apple and Qualcomm, as well as litigation between Qualcomm and contract manufacturers including Foxconn.

The deal has Apple and Qualcomm entering a six-year patent license agreement as well as a multi-year chipset supply agreement.

The agreement is paving the way for Apple to launch a 5G-capable iPhone in 2020, as Qualcomm is a leading provider of chipsets for high-speed 5G service.

Prior to the settlement, Intel had reportedly been the only 5G modem supplier for the 2020 iPhones but had missed upcoming deadlines this summer for delivering sample parts of its 5G modem.

Intel has since announced it's exiting the 5G modem business following Apple's deal with Qualcomm. Intel's leaders are "assessing our options to realize the value we have created" in 5G modems, Intel CEO Bob Swan said in a previous statement.

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