Apple vs. Qualcomm: Everyone wins? Why both companies might want to settle quickly

Teresa Rivas reports for Barron’s, “Credit Suisse’s Kulbinder Garcha and his team took a closer look at the [Apple vs. Qualcomm] dispute, writing that even with this latest development [U.S. ITC investigation], they still think it’s unlikely that the quarrel will lead to prolonged litigation or court trials, as both companies have reason to to avoid these scenarios.”

“He writes that mutual self-interest should prevail: Qualcomm has settled with Nokia and Samsung Electronics in the past with agreements that worked for both parties,” Rivas reports. “Sure, Apple would probably have a big upfront payment, but it could easily digest this, given its huge cash war chest (providing Qualcomm with some upfront revenues), and it would also allow the companies to possibly collaborate in the future as well.”

Rivas reports, “In the end, Garcha sees this as a moderate increase in risk to Apple, but he doesn’t think that investors should be overly concerned, especially with the coming iPhone 8 super cycle.”

Read more in the full article here.

MacDailyNews Take: As we wrote on Tuesday, “This [U.S. ITC investigation] is just another step on the road to the settlement.”

U.S. ITC to investigate Qualcomm’s allegations of Apple patent infringement – August 8, 2017
Credit Suisse: Apple could end Qualcomm dispute with $8 billion payment – August 7, 2017
Intel: Qualcomm uses the courts to destroy competition – July 25, 2017
Intel accuses Qualcomm of abusing its mobile chip monopoly – July 21, 2017
Qualcomm now suing Apple in Germany – July 19, 2017
Apple joined by Foxconn, Pegatron, and others in its fight with Qualcomm – July 19, 2017
Apple accepts invitation by its contract manufacturers to join another Qualcomm fray – July 18, 2017
Qualcomm CEO expects out of court settlement with Apple – July 18, 2017
Apple-Qualcomm legal dispute likely to be ‘long and ugly’ – July 7, 2017
Qualcomm wants court to block Apple from U.S. iPhone imports and sales – July 6, 2017
Judge rules U.S. FTC antitrust lawsuit against Qualcomm to proceed – June 27, 2017
Apple uses Supreme Court decision to escalate war against Qualcomm – June 20, 2017
Apple’s amended San Diego complaint against Qualcomm leaves no doubt: many billions at stake – June 20, 2017
Apple rejects Qualcomm’s allegation of throttling iPhones, says ‘study’ is ‘methodologically unsound’ – June 20, 2017
Apple just poached one of Qualcomm’s top guys – May 31, 2017
Supreme Court rules against Lexmark strengthening FTC/Apple cases against Qualcomm – May 30, 2017
Desperate Qualcomm seeks injunction against Apple’s suppliers – May 25, 2017
Qualcomm files new lawsuit in ongoing Apple feud targeting four major iPhone suppliers – May 17, 2017
FTC says Qualcomm is a monopoly; Samsung agrees – May 13, 2017
What seems reasonable to Qualcomm isn’t to Apple: Royalty dispute ultimately affects iPhone prices – May 8, 2017
Qualcomm to seek U.S. ITC import ban for Apple iPhones – May 3, 2017
Qualcomm slashes profit forecasts as Apple ceases paying iPhone royalties – April 28, 2017
BlackBerry awarded $815 million in arbitration with Qualcomm over royalty overpayments – April 13, 2017
Qualcomm countersues Apple – April 11, 2017
Qualcomm wants FTC to drop their antitrust suit, but it doesn’t mater because Apple’s isn’t going anywhere – April 5, 2017
Apple’s dispute with Qualcomm could last two years – March 3, 2017
Apple widens global patent war, files lawsuit against Qualcomm in the United Kingdom – March 2, 2017
Apple may have paid Qualcomm $40 per iPhone; accounting for 1/3rd of Qualcomm’s revenue – February 10, 2017
Conservative groups ask President Trump to terminate FCC lawsuit over Qualcomm patent licensing – January 27, 2016
Qualcomm CEO fires back at Apple: Bring it on – January 26, 2017
Apple sues Qualcomm in China seeking 1 billion yuan – January 25, 2017
Qualcomm comments on Apple’s lawsuits in China – January 25, 2017
Apple’s rebellion against the ‘Qualcomm Tax’ – January 24, 2017
Despite lawsuit, Qualcomm wants to keep doing business – January 24, 2017
Why Apple, the FTC, and others are attacking Qualcomm’s royalty model – January 24, 2017
Here are the most damning parts of Apple’s blockbuster lawsuit against Qualcomm – January 23, 2017
Apple’s legal assault on Qualcomm part of iPhone margin grab – January 23, 2017
Qualcomm says Apple’s claims are ‘baseless’ in response to Cupertino’s $1 billion lawsuit – January 21, 2017
Apple sues Qualcomm for $1 billion over onerous licensing practices – January 20, 2017
Qualcomm exec says FTC ‘rushed’ antitrust lawsuit before President-elect Trump’s inauguration – January 19, 2017
FTC alleges Qualcomm forced Apple into iPhone LTE chip deals – January 18, 2017
FTC charges Qualcomm with monopolizing key smartphone chip; alleges extracted exclusivity from Apple in exchange for reduced patent royalties – January 17, 2017


  1. I’d be surprised if this ‘doesn’t’ go all the way…to a true FRAND determination. Otherwise it’s back to square one and Qualcomm’s monopolistic abuse that ends Intel’s chances in the market. There is now some third party muscle behind Apple so…no settlement.

  2. Credit Suisse’s Kulbinder Garcha and his team…

    Yeah, yeah. FAIL analcyst. The fact remains that Qualcomm has been pulling illegal monopolist and extortion price gouging abuse for years. Bring them down Apple.

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