The news sent Qualcomm's stock price soaring more than 23 percent on Wall Street, its best one-day performance in almost 20 years. That same day, the ITC invalidated a Qualcomm patent covering a battery-saving feature. Apple, on the other hand, saw a small dip before going up by barely 1%. Intel, a Qualcomm competitor, sharply dipped on the news before recovering. And the chip maker is still on pins and needles awaiting Judge Lucy Koh's decision related to the FTC v. Qualcomm case heard earlier this year.
Following its initial USA lawsuit, Apple filed two more suits in China on the same basis.
Now that the dust has settled, Apple can start testing a 5G-enabled iPhone with Qualcomm's latest and faster modems.
Apple accused chip-maker Qualcomm of overcharging, a claim the firm denied.
"In order to purchase Qualcomm chips or obtain access to patents pledged to a cellular standard, Qualcomm demands that third parties pay Qualcomm a royalty much greater than the value of Qualcomm's contribution to the standard", Apple argues.
Qualcomm insists on customers signing a patent licensing agreement before it will sell modem chips, a practice Apple objected to. It includes a one-time payment from Apple to Qualcomm.
Qualcomm has an extensive patent portfolio covering numerous technologies used in smartphones and derives a significant amount of its annual revenue through licence payments from phone makers.
The surprise settlement brings an end to a long-running battle over the cost of the processors that phones use to connect to mobile networks.
While lifting Qualcomm's shares, the settlement didn't help Apple's stock, which was largely unchanged at $199.25.
A woman who has never owned a smartphone is among the nine jurors selected Monday to decide a multibillion-dollar dispute between Apple Inc. and Qualcomm Inc. over the technology used in iPhones. At today's conference, Huawei confirmed that it had no deal with Apple for supplying 5G modems. So the Cupertino-based company should select one (or more) suppliers for the 5G-enabled iPhone. With no other supplier likely to have 5G chips ready in time, it was speculated that Apple could use an in-house solution.