It was an enormous—and expensive—week for Apple. And most of it centered on Apple’s Qualcomm troubles.
On Tuesday, Apple and Qualcomm introduced an finish to their patent dispute and that they’d enter right into a six-year licensing deal that may let Apple use Qualcomm chips in future iPhones and different gadgets. The settlement—and their resolution to finish all litigation worldwide—was seen as a victory for Qualcomm, which reportedly netted as much as $6 billion from Apple to settle the dispute.
Apple’s week didn’t solely middle on Qualcomm. Amazon took an enormous step in direction of difficult Apple Music with a brand new, free music-streaming service. Moreover, Apple’s iPhone shipments final quarter might have been decrease than the corporate had anticipated, in keeping with one provide chain report.
It wasn’t all unhealthy information. Apple additionally bought extra iPhones within the U.S. within the first quarter than some other handset maker, in keeping with a brand new examine. TF Worldwide Securities analyst Ming-Chi Kuo mentioned large issues are forward for this yr’s iPhones.
Learn on to study extra about all the largest Apple information from the previous week.
Apple and Qualcomm have settled a two-year patent dispute. The businesses mentioned on Tuesday that they’d ended all litigation and have signed a six-year patent-licensing settlement that permits Apple to bundle Qualcomm chips in its gadgets. Though phrases of the deal weren’t made public, UBS analyst Timothy Arcuri mentioned that he believes Apple paid as much as $6 billion to settle with Qualcomm. He additionally estimates that Apple can pay royalties of $eight to $9 per iPhone to incorporate Qualcomm chips in them. Right here’s a have a look at all the winners and losers in Apple’s Qualcomm battle from my Fortune colleague Aaron Pressman. Apple’s AirPods are underneath assault. The $159 diminutive wi-fi earbuds might face a brand new competitor in Microsoft. Earlier this week, tech information web site Thurrott revealed that Microsoft is engaged on AirPods opponents that may be sufficiently small to suit snugly in buyer ears, wi-fi connectivity, and work with the corporate’s digital private assistant Cortana for voice management. There’s no telling but when they might be part of AirPods on retailer cabinets. Apple may miss Wall Avenue’s expectations on iPhone shipments, in keeping with researcher OTR International. The corporate mentioned this week that 18 Asia-based provide chain executives it had polled about Apple’s purchases from them confirmed that Apple had shipped 37 million to 42 million iPhones throughout its fiscal second quarter ending in March. That’s barely behind the 40 million to 45 million items Wall Avenue expects. OTR International mentioned Apple skilled “poor demand for the brand new iPhone XR and iPhone XS fashions” through the interval. In a notice to buyers this week, TF Worldwide Securities analyst Ming-Chi Kuo mentioned Apple would improve the front-facing digicam on this yr’s iPhone from the 7-megapixel sensor in 2018 iPhones to 12-megapixels. Kuo mentioned Apple additionally plans a triple-lens digicam array on this yr’s iPhones, in keeping with Apple-tracking web site 9to5Mac. He expects Apple to announce the brand new iPhones this fall. Apple’s iPhone was the top-selling smartphone within the U.S. within the first quarter with 36% market share, researcher Shopper Intelligence Analysis Companions (CIRP) mentioned this week. Samsung was in second with 34%, adopted by LG with 11% and Motorola with 10%. Amazon took an enormous leap in its combat in opposition to Apple Music and Spotify this week. The corporate introduced a free streaming-music service that can let customers entry hundreds of thousands of songs in its Amazon Music playlists. For now, Amazon is testing it on good house gadgets that use its Alexa voice assistant. All indicators are pointing to a broader launch on non-Alexa gadgets sooner or later. Apple Music and Spotify each value $9.99 month-to-month. A free streaming-music different from Amazon could possibly be a menace to each. Apple’s upcoming streaming video service, Apple TV+, has signed one other prime govt. Danielle DePalma, who most just lately served as the chief vice chairman of worldwide digital advertising and marketing and analysis at movie studio Lionsgate, will lead Apple TV+’s movie and tv sequence advertising and marketing, in keeping with Deadline. DePalma left Lionsgate in January.
That is Fortune’s newest weekly roundup of the most important Apple information.
Yet another factor…Beyonce’s album Lemonade is coming to Apple Music for the primary time. Beyoncé launched Lemonade in 2016 completely on Tidal, a competing music service her husband Jay-Z owns. It’ll be out there on Apple Music on April 23.