Qualcomm to get $4.5 bn from Apple settlement

San Francisco: US mobile chipmaker Qualcomm on Wednesday said it expects a windfall of $4.5 billion to $4.7 billion this quarter from its recent settlement with Apple in a royalty battle. Qualcomm factored the additional revenue into a forecast in its latest earnings release, saying the money would be a payment "from Apple and the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities." The Southern California-based company also factored in revenue expected for new royalties from Apple and the makers of its devices.

Qualcomm reported revenue of $5 billion in the recently ended quarter, while its forecast for the current quarter was from $9.2 billion to $10.2 billion in revenue. In April, Apple and Qualcomm announced an agreement to "dismiss all litigation" against each other worldwide in what had been a sprawling battle over royalty payments. The last-minute settlement cut short a courtroom clash between the tech giants just as it was getting underway in California.

For two years, the companies had fought a multi-front brawl that could have required Qualcomm to pay billions.