2019-05-01 09:27:00 Wed ET
technology antitrust patent competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
Apple settles its 2-year intellectual property lawsuit with Qualcomm by agreeing to a multi-year patent license with royalty payments to the microchip maker. As part of this settlement, Apple and Qualcomm need to forego all legal actions worldwide, and the former continues to buy microchips from the latter. With a $2 increase in its latest EPS in early-2019, Qualcomm experiences a 23% share price boost well above $65, and its market capitalization surges by $14.5 billion to more than $83 billion. Qualcomm thus enjoys its best share price performance since 1999. In stark contrast, Apple faces a 3% share price decline, and also the Qualcomm microchip archrival Intel experiences a moderate share price dip.
During the fiscal year from 2018 to early-2019, Apple employs Intel microchips for the iPhone XS and XR production. Apple needs to surpass this strenuous patent settlement with Qualcomm to focus on 5G networks and revolutionary iPhone and iPad functions. With vital access to Intel and Qualcomm microchips, Apple designs 5G iPhones sooner than the late-2020 release date that numerous stock analysts anticipate. The surprise lawsuit settlement represents a *pyrrhic victory* for Apple as Qualcomm inflicts a hard toll on the smartphone bellwether.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-11-26 11:30:00 Tuesday ET
AYA Analytica finbuzz podcast channel on YouTube November 2019 In this podcast, we discuss several topical issues as of November 2019: (1) The Trump adm
2019-11-13 11:34:00 Wednesday ET
The new Brexit deal can boost British pound appreciation and economic optimism. British prime minister Boris Johnson wins the parliamentary vote on his new
2019-05-13 12:38:00 Monday ET
Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iranian oil exports. U.S. State Secret
2017-03-15 08:46:00 Wednesday ET
The heuristic rule of *accumulative advantage* suggests that a small fraction of the population enjoys a large proportion of both capital and wealth creatio
2023-05-27 11:30:00 Saturday ET
Bank failure resolution and financial risk management: Silicon Valley Bank, Signature Bank, and First Republic Bank. What are the main root cau
2019-01-10 17:31:00 Thursday ET
The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history. The resultant biopharma goliath would be