Qualcomm Inc. (NASDAQ: QCOM ) shares are starting to show some signs of life. This month, its shares are up 9%. This change is due in part to the favorable development of the company's long-standing dispute with Apple.
In mid-March, Qualcomm announced that a jury in the United States Supreme Court found that “ Apple ’s iPhone 7, 7 Plus, 8, 8 Plus and X use Qualcomm patents without permission.” “The jury awarded Qualcomm $31 million in damages from July 6, 2017, the date the lawsuit was filed, through the end of the trial. The three infringements involve technologies invented by Qualcomm in San Diego,” the company said.
Qualcomm also won a court battle with Japan, which accused the company of violating the country's antitrust laws. However, the Japan Fair Trade Commission (JFTC) ruled that QCOM was not a monopoly.
These legal issues have affected and continue to affect Qualcomm shares. However, there are other issues that play a role. For example, QCOM is one of the most important chip suppliers in the smartphone. In 2019, the market is expected to grow significantly thanks to 5G and other new products, according to IDC.
5G capabilities, which will be available by 2020, could benefit the company. Qualcomm's recently announced Snapdragon X55 5G modem allows the company to aggressively enter the 5G market, which is not just about smartphones.
The Snapdragon X55 modem will be used in a wide range of devices. The previous model, the X50, is only suitable for smartphones and Wi-Fi hotspots.
