$AAPL and $QCOM renew their relationship!

$QCOM announced the renewal of a global patent license agreement with $AAPL, effective April 1, 2027.

Qualcomm shares reacted to the news in pre-market trading with a gain of about 1%, despite the broader sell-off in tech stocks.

The new agreement follows the April 2019 deal that ended a two-year international legal dispute over patent fees.

Division split

The QTL licensing division collects fees for patents essential to mobile networks, including 5G, and Apple needs them regardless of whose modem it uses in the iPhone. The renewal eliminates the risk of licensing revenue loss after 2027 for $QCOM.

The QCT chip division, on the other hand, continues to face Apple's gradual transition to its own C-series processors. Qualcomm indicated in July that revenue from Apple chip sales will decline faster than originally expected.

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