Technology
UBS: Apple and Huawei paid Qualcomm $6.4 billion in royalties in arrears
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From a note to clients that landed in my desktop Wednesday:
While very limited terms were disclosed, QCOM’s indication of ~$2/share in incremental EPS… suggests to us that AAPL settled for something in the range of $8-$9/phone royalty rate—a solid outcome for QCOM and certainly better than the ~$5 assumption we had been making.
This additionally does not include what seems to be a likely resumption of full royalty payments from Huawei as well as bullet payments from both AAPL (~$5-$6B) and Huawei (~$1.5B) for royalties in arrears.
Cue the spreadsheets:
Click to enlarge.
My take: Apple caved.
See also: Apple-Qualcomm settlement: What the influencers are saying
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