A recent development has been made between the sour relations of Huawei and Qualcomm after over a year. Qualcomm has inked a new interim licensing deal with the Chinese handset maker, Huawei. On Wednesday, Huawei made the announcement public by revealing that they have signed a short-term licensing agreement with the world’s largest chipmaker, Qualcomm.
The deal has been made in the Qualcomm’s first quarter, ended on Dec 31, and Huawei’s fiscal third quarter. The Chinese smartphone manufacturer will make payment of $150 Million for three quarters. Qualcomm’s Chief executive, Steve Mollenkopf said that the deal still seems to be less than the company owed. Though, he added that the new agreement is “on slightly better terms, which is very good.” Further, he said, “We continue to believe that over the course of 2019, we will reach a resolution on the key outstanding issues in our disputes with Apple through settlement or litigation, and we are prepared for both outcomes.”
The new deal will act positively on the Qualcomm’s licensing business which is scheduled to play a significant role in the 5G licensing programme. It holds major patents related to key technologies such as 3G, 4G, and 5G. Qualcomm estimated that the licensing business would allow them to garner $1 billion – $ 1.1 billion as they have signed 35 customers for the 5G licensing programme. If all goes well, Qualcomm will perform better than the estimated expectations for this quarter.
Even Christopher Rolland, an analyst with Susquehanna International Group said that the revenue is “slightly disappointing, but most were well aware of the weakness in the handset market, so will be forgiven.” He termed this deals as a “step in the right direction.”
Qualcomm reported quarterly financial earnings which stood against all the odds at the Wall Street. The improved report led the Qualcomm shares to rose nearly 2.6 percent at $51.47. It calmed the Investor’s concerns about the poor performance over the global slowdown in smartphone sales. Although the recent deal between the Huawei and Qualcomm has also improved the Qualcomm’s earnings.
(Via)
