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.
Apple probably also agreed to pay between $8 and $9 in patent royalties per iPhone, estimated UBS, based on Qualcomm’s guidance that it expects earnings per share to increase by $2 as a result of the settlement.
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.
Since the settlement, Qualcomm stock is up over 38%. Apple shares are 2% higher.