Qualcomm stock skyrockets 23% as Apple legal battle concludes
Qualcomm stock surged after the announcement that the company has settled its multi-billion-dollar lawsuits with Apple. At market close Qualcomm’s stock price settled at $70.45 after opening at $57.46.
The stock surge showcases just how surprising the resolution is, especially given how wholeheartedly Apple appeared to be moving forward with Intel to keep Qualcomm tech out of their mobile devices. Qualcomm and Apple had spent the better part of more than two years engaged in a legal skirmish over outsized royalty payments, patent infringements and IP theft.
Apple and Qualcomm are ending their legal battles
Beyond the legal resolution and an undisclosed payment from Apple to Qualcomm, the companies announced they had come to a six-year licensing agreement and a multi-year chipset agreement, a deal that certainly will assuage investor fears that the company was risking a relationship with a top customer in order to hold to its royalty guns, a move that carried the risk of damaging relationships with other partners as Apple urged suppliers to halt royalty payments during the dispute, as well.
Intel and Apple stock were largely unaffected by the news.