Qualcomm’s forecasts suggested Apple’s licensing fees will not substantially increase revenue as Apple catches up on royalties.
Qualcomm will book a one-time payment of $4.5 billion to $4.7 billion next quarter from its settlement with Apple in a patent battle, the mobile chip maker said Wednesday as it reported its quarterly earnings.
It was the first time investors got a look at how the agreement will help Qualcomm’s bottom line, and the company’s shares fell about 3 percent in after-hours trading. The stock had been up more than 50 percent in recent weeks, reflecting investor relief at the deal. However, Qualcomm’s forecasts suggested that Apple’s licensing fees will not substantially increase revenue as Apple catches up on royalties it didn’t pay while the two companies were feuding.
