Qualcomm gains $30bn in market value after settling Apple patent dispute

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Qualcomm gains $30bn in market value after settling Apple patent dispute

On Wednesday, the 17th of April 2019, Qualcomm Inc., the Chipmaker headquartered in San Diego, added another $30 billion of market valuation after posting a 23 percent rise on yesterday (April 16th), after the California-based semiconductor and telecommunication equipment maker had settled its six-year long patent dispute with Apple Inc.

on Tuesday (April 16th). As the US chipmaker had resolved its long-lasting legal battle with Apple Inc. which also included a monetary compensation, the Qualcomm Inc. should have been on its way to regain its leadership over 5G phone chips.

Followed by the announcement of resolving the lacerating patent dispute on Tuesday (April 16th), Qualcomm Inc. shares were up by 23 percent at the day’s market closure. Never the less, the share prices of US chipmaker had also surged as much as 17 percent on Wednesday (April 17th), breaching its highest level in nearly two decades, before breaking off the day 12 percent higher at $79.08.

Qualcomm Inc.’s fortune seemed to be feathered up, as Apple’s sole iPhone chip supplier for past few years, Intel Corp., had decided to evade its modem chips business following Apple’s settlement with Qualcomm Inc.

Addressing to Qualcomm’s dominance on US 5G market, an analyst at Wedbush Securities, Dan Ives said, “This was a game changing settlement for Qualcomm and was also a smart move by Apple to clear this noise and focus on 5G smartphones for 2020.

In the US, around 5G it’s Qualcomm’s world and everyone else is just paying rent”.