Qualcomm expects to receive up to $4.7 billion from Apple settlement

US tech giant Apple is set to pay chip supplier Qualcomm $4.5-4.7 billion under a recent settlement that ended the lengthy legal battle between the two companies.

The amount Qualcomm is due was revealed as the San Diego-based company announced its second-quarter results on Wednesday. Apple released its own financial report for the same period one day earlier, but it did not mention the payment.

The money Apple is to pay is less than the $7 billion that Qualcomm initially claimed it was owed in unpaid royalty payments.

The two firms settled their royalty and patent dispute last month. The deal included a multiyear chipset supply agreement and a payment from Apple to Qualcomm, but at that time the companies did not elaborate on how much it will be.

The surprise settlement comes after two years of intense legal battles, in which Apple accused Qualcomm of monopolistic practices, while the chipmaker said Apple was using its technology without paying for it.

Despite the announced benefits from the deal with Apple, Qualcomm shares fell about three percent in afterhours trading to $83.39, according to MarketWatch. Nevertheless, Qualcomm stock is up nearly 50 percent since the settlement was announced on April 16.

The chipmaker expects its “strong quarter” – in which it reported a net income of $663 million – will be followed “by a slower market for devices, particularly in China, upstream of the larger rollouts of 5G worldwide.”

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