A day after settling a multibillion-dollar battle with Apple, Qualcomm’s CEO told CNBC he looks forward to working with the iPhone maker, but he would not disclose how much Apple agreed to pay.
“The reality is two great product companies, it’s a natural position for them to work together and want to work together,” Qualcomm CEO Steve Mollenkopf said.
Mollenkopf said the company will not disclose the payment Apple agreed to in the settlement. Following the announcement of the settlement on Tuesday, Qualcomm said it expects incremental earnings per share of $2 as product shipments ramp and it starts providing 5G chips to Apple.
Shares of Qualcomm were up more than 12% in early trading on Wednesday following a 23% rally on Tuesday after announcing the deal.
The legal battle had centered on a royalty dispute between the two companies. Apple claimed that Qualcomm was abusing its position as a dominant supplier by charging high prices as well as licensing fees for its patents. The chipmaker claimed Apple withheld payments it had agreed to. The settlement announcement came just as trial proceedings were beginning in San Diego, where each company sought billions in damages.
Despite the bitter legal dispute, Mollenkopf said Qualcomm and Apple are now focused on their products and working together.
“The energy of the companies right now is let’s figure out how to ramp up as quickly as possible,” Mollenkopf said. “That’s where the focus is, that’s what we are excited about.”
Now that this dramatic chapter is behind Qualcomm, Mollenkopf said he is excited to focus on new opportunities, including 5G.
“There’s a lot of opportunity for us to go after that and we hope to have the ability to do even more,” Mollenkopf said.