Analyst: 5G iPhone will give Qualcomm $ 4 billion patent fee in three years

America analyst Tal Liani expects that by the end of the fiscal year 2022, chip giant Qualcomm will earn 40% from Apple’s 5G mobile phones Billion US dollars patent license fee.

With the launch of 5G in North America and Europe in the next few years, Qualcomm has invested heavily in research and development to support next-generation cellular network modems. The company expects that driven by the demand for Chinese and mid-range equipment, global 5G mobile phone shipments will exceed 750 million units in 2022, and the average selling price of Apple’s iPhone will also rebound.

Qualcomm’s patent licensing unit Qualcomm Technologies has so far signed more than 75 5G contracts worldwide. By the end of June 2020, these contracts will bring Qualcomm $ 2.3 billion to $ 2.7 billion in net revenue.

In light of Apple’s previous US $ 4.7 billion patent license fee to Qualcomm, Liani predicts that Apple will need to pay US $ 8.7 billion in patent fees to Qualcomm in the next three years, which is more than four times the value of all current Qualcomm 5G contracts.

Over the past three years, Qualcomm’s revenue has been volatile, as the company reversed the decline in product sales by increasing license fees. The company reported a $ 2.8 billion decline in equipment and services revenue in 2019, but revenues in patent licensing reached $ 4.4 billion, more than making up for that loss.

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