Apple may also be paying Qualcomm between $8 and $9 per iPhone in patent royalty fees.
Apple probably paid Qualcomm between $5 billion and $6 billion to settle the litigation between the two companies, UBS analyst Timothy Arcuri estimated in a note distributed on Thursday.
The UBS estimate suggests that Apple paid a high price to end a bitter legal battle that spanned multiple continents and threatened Apple's ability to release a 5G iPhone and put pressure on Qualcomm's licensing business model that contributes over half of the company's profit.
The settlement is"a solid outcome for Qualcomm and certainly better than the [roughly] $5 [royalty payment] assumption we had been making," Arcuri wrote.
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