Apple and Qualcomm have agreed to settle all of their ongoing lawsuits, bringing a surprise end to the massive legal dispute that's seen the two tech giants sue one another across the globe.
As part of the settlement, Apple will pay Qualcomm an undisclosed amount, while the two have also reached a six year global patent licensing agreement, which may be extended for another two years.
In addition, Qualcomm will supply parts to Apple for the next several years.
Prior to the settlement, the two tech companies had been fighting each other in the courts for the past two years over Qualcomm's patent licensing practices.
Apple accused Qualcomm of charging unreasonably high fees for essential patents, and using its position as the dominant supplier of smartphone modems to demand such fees.
The lawsuit began in January 2017, but the two companies entered court just this week.
In an even more surprising development, news of the settlement came while the two sides were still reading their opening arguments.
The settlement is bad news for Intel as recent speculation suggested Apple was planning to use its 5G chips for its 2020 iPhones.
Insiders say news of Intel's production delays could have been a factor in Apple's decision to come to bury the hatchet with Qualcomm.
Lee Seung-jae, Arirang News.