iPhone. Desperation has forced Apple to pay a huge amount of money just to make sure that it can give its phones what they need to be successful when they are released. More specifically, you already knew that Apple has signed an agreement with Qualcomm to end all open processes in various areas around the world, and will also buy 5G modems for the iPhone in the future.
iPhone. Although Apple and Qualcomm did not announce at the time of signing the agreement how much the latter will receive from the former as compensation to overcome all the problems, today the final amount was found out. According to the information provided by Qualcomm during the conference for the presentation of the financial results on Q1 2019, Apple will pay it between 4.5 and 4.7 billion dollars to have 5G modems for iPhone phones.
iPhone. HUGE Amount Paid by Apple out of DESPERATION
iPhone. Out of desperation that it cannot buy 5G modems from Intel or other manufacturers, Apple has agreed to pay a minimum of $4.5 billion in damages to restore the business relationship. Thanks to the collaboration with Qualcomm, those from Apple will not only have 5G modems for iPhone phones, but they will also have 4G modems that are much better than those from Intel, they are intensely criticized for their inferior GSM performance compared to Android.
While we continue to assess the accounting impacts of the agreements, our financial guidance for the third quarter of fiscal 2019 includes estimated revenues of $4.5 billion to $4.7 billion resulting from the settlement (which will be excluded from our Non-GAAP results), consisting of a payment from Apple and the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities.
iPhone. Apple concluded the agreement with Qualcomm for a period of 6 years, so until 2025, at least, the Cupertino phones should benefit from the best technologies for GSM functions. Considering the current understanding, it is impossible for Apple to implement Qualcomm's modems even with the iPhone 11, but for the 2020 phones we will certainly see both 4G and 5G modems.
iPhone. From my point of view, Apple could pay even more just to have the best GSM technologies for the iPhone, and that's because Intel doesn't offer modems anywhere near as good.
