Qualcomm Inc (QCOM)

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UBS: Apple and Huawei paid Qualcomm $6.4 billion in royalties in arrears
By: 24/7 Wall St. | April 19, 2019

Analyst Timothy Arcuri estimates the terms of Tuesday’s settlement.


From a note to clients that landed in my desktop Wednesday:

While very limited terms were disclosed, QCOM’s indication of ~$2/share in incremental EPS… suggests to us that AAPL settled for something in the range of $8-$9/phone royalty rate—a solid outcome for QCOM and certainly better than the ~$5 assumption we had been making.

This additionally does not include what seems to be a likely resumption of full royalty payments from Huawei as well as bullet payments from both AAPL (~$5-$6B) and Huawei (~$1.5B) for royalties in arrears.

Cue the spreadsheets:



My take: Apple caved.

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