Will Qualcomm Agree to a Deal With Broadcom? Ask Apple - The New York Times

Partner different

"Apple may anoint the winner of Broadcom’s $105 billion bid for Qualcomm. A dispute over iPhone royalties left Qualcomm vulnerable to an opportunistic offer from its acquisitive rival. If Apple settles its dispute, it could preserve Qualcomm’s independence — but it all depends on whether Apple thinks a bigger Broadcom would be slavishly devoted to its devices, or just surlier.

Qualcomm and Apple came to blows over royalties that the chip maker collects on mobile gadgets, most of which use its technologies. The actual payments aren’t disclosed, but analysts generally peg them at about $10 per phone. When Apple sued Qualcomm and told its suppliers to stop paying these fees this year, it helped push Qualcomm’s share price down by $10 per share, in subsequent months, to the $54.84 at which it traded last Thursday, the day before Broadcom’s interest was reported."

Will Qualcomm Agree to a Deal With Broadcom? Ask Apple - The New York Times