Qualcomm Leaps Again After an Agreement with Apple

The action Qualcomm took more than 10% Wednesday on Wall Street after a surge in stock market driven by optimism investors after an agreement Tuesday between the chip supplier and Apple, ending two years of legal battle.

Qualcomm advanced 10.86% to 78.02 dollars around 13:53, after closing Tuesday on a jump of 23.2% just after the announcement of the end of the conflict with Apple. The mark at the apple earned 2.00% to 203.17 dollars after closing on Tuesday.

The standoff between the two companies that ended Tuesday was focused on the amount of royalties requested by Qualcomm. The group manufactures chips for connecting smart phones to telecom networks and holds most patents. A double position that, according to Apple, made him ask the manufacturers exorbitant sums.

The agreement ended all prosecutions on both sides. He expects Apple to pay a sum, the amount has not been disclosed, to Qualcomm, said the firms Tuesday.

The agreement “seems extremely positive for Qualcomm despite the lack of details at this stage,” said analysts JPMorgan Chas Wednesday, revising upward their perspective on the share price to 88 dollars against 54 dollars before.

The two groups signed a six-year license agreement starting in April 2019, renewable for two years, as well as a “multi-year” chip supply agreement, meaning that Qualcomm officially becomes an Apple supplier again. Again, no financial data has been specified.

Asked about the CNBC financial channel on Wednesday, Qualcomm CEO Steven Mellenkopf said the deal would allow a “much more normal” relationship between Qualcomm and Apple.

“We have reached an agreement that suits both companies,” he added, adding that there was no “one-night” consensus.

However, he did not provide any additional details on the financial terms of the agreement.

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Qualcomm Leaps Again After an Agreement with Apple - /10

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The action Qualcomm took more than 10% Wednesday on Wall Street after a surge in stock market driven by optimism investors after an agreement Tuesday between the chip supplier and Apple, ending two years of legal battle.

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