Qualcomm shares soar as Apple agrees to settle bitter licensing dispute – Biotech Insider
Qualcomm shares soar as Apple agrees to settle bitter licensing dispute
SAN FRANCISCO — Apple and mobile chip maker Qualcomm have settled a bitter financial dispute centered on some of the technology that enables iPhones to connect to the internet.
The surprise truce announced Tuesday came just as the former allies turned antagonists were facing off in a federal court trial that was supposed to unfold over the next month in San Diego. The resolution abruptly ended that trial, which also involved Apple’s key iPhone suppliers.
The deal requires Apple to pay Qualcomm an undisclosed amount. It also includes a six-year licensing agreement that likely involves recurring payments to the mobile chip maker.
Investors reacted as if it were a resounding victory for Qualcomm. The San Diego company’s stock QCOM, +8.83% soared 23% to close Tuesday at $70.45. Apple shares AAPL, +0.38% edged up 2 cents to $199.25.
Neither Apple nor Qualcomm would comment beyond a brief statement announcing they had resolved their differences. Details about how much Apple and its iPhone suppliers will be paying Qualcomm could emerge in court documents or when the companies announce their latest financial results. Apple is due to report its quarterly results on April 30 while Qualcomm is scheduled to release its numbers on May 1.
Apple had been seeking at least $1 billion for money that Qualcomm was supposed to rebate as part of an earlier licensing agreement. Apple had begun to have misgivings about that deal as it added more features to its increasingly popular line-up of iPhones.
Qualcomm was seeking $7 billion for unpaid royalties it contended it was owed for its patented technology in the iPhone. Apple’s iPhone suppliers, including Foxconn 2354, +1.12% and Pegatron 4938, +0.33% , wanted another $27 billion from Qualcomm.
Apple had already lost an earlier battle with Qualcomm last month when a federal court jury in San Diego decided the iPhone maker owed Qualcomm $31 million for infringing on three of its patents.
Qualcomm still faces other potential fallout from its demands to be paid royalties in addition to the fees it charges for its mobile chips. The Federal Trade Commission has accused the company of using its royalty system to stifle competition in the mobile chip market in another case in which Apple played a central role.
A trial about the FTC’s lawsuit wrapped up in a San Jose, California, court in January, but the judge still hasn’t issued a ruling.
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By Vikram Rajoori – Microsoft bets on a real-time operating system for IoT devices with Express Logic acquisition
As the Internet of Things (IoT) develops further, Microsoft is taking major steps to increase its market share. The purchase of Express Logic, a business well-known for its ThreadX real-time operating system (RTOS), was one of its most calculated actions. Microsoft’s dedication to growing its Azure IoT ecosystem by incorporating effective, safe, and real-time processing capabilities into IoT devices is demonstrated by this acquisition.
The devices that make up the internet of things require a different approach to computing, which is one of the reasons why Microsoft just agreed to acquire a company known for its specialized IoT operating system.
Table of Contents
Why Did Microsoft Acquire Express Logic?
A strategic move to strengthen Microsoft’s IoT strategy was made with the acquisition of Express Logic. The ThreadX RTOS from Express Logic is well known for its quickness, portability, and effectiveness when managing embedded devices. One of the most widely used RTOS solutions for microcontroller-based devices, the operating system is currently installed in more than 6.2 billion devices. Microsoft hopes to accomplish the following by incorporating Express Logic’s technology:
- Improve Azure IoT Services by adding real-time capabilities to its cloud-based IoT solutions.
- Boost security by making sure IoT devices can process and react to data in real time while upholding strict security guidelines.
- Increase Developer Accessibility: Facilitate the development of high-performance, low-power Internet of Things applications.
What is ThreadX RTOS?
A real-time operating system (RTOS) called ThreadX was created for embedded and Internet of Things devices that need to operate with minimal latency and great speed. In contrast to conventional operating systems, RTOS places a higher priority on predictable performance, guaranteeing that operations are completed within stringent time limits.
Important ThreadX RTOS Features
- Low Latency: This makes it possible for vital IoT applications to process data in real time.
- Minimal Memory Footprint: Perfect for microcontrollers with limited resources.
- Preemptive multitasking: Ensuring that several tasks run smoothly.
- Scalability: Able to accommodate a broad variety of devices, ranging from intricate industrial controllers to tiny sensors.
- Smooth Cloud Integration: For sophisticated analytics and automation, it is possible to integrate with Microsoft Azure.
Impact on the IoT Ecosystem
The IoT environment is anticipated to be significantly impacted by Microsoft’s acquisition of Express Logic:
1. Fortifying Azure RTOS and Azure IoT Edge
Through the acquisition, Microsoft will be able to include ThreadX into its Azure RTOS and Azure IoT Edge products, giving businesses access to a robust end-to-end IoT framework. As a result, companies will find it simpler to implement intelligent edge computing solutions, which process data on devices instead of depending only on cloud computing.
2. Taking on Other IoT Powerhouses
With this action, Microsoft puts itself in a better position to compete with businesses who have their own IoT platforms, such as Google, Amazon, and ARM. Microsoft strengthens its edge computing capabilities by introducing a popular RTOS to its portfolio, placing it squarely in competition with Google’s IoT Core and Amazon FreeRTOS.
3. Industrial IoT (IIoT) advancement
Real-time processing capabilities are essential for sectors like manufacturing, healthcare, automotive, and smart cities. Microsoft is able to provide more reliable industrial IoT solutions by enhancing automation and decreasing downtime using ThreadX’s effective real-time task management.
4. Increasing Connected Device Security
Security issues are more important than ever as the Internet of Things grows. Safety-critical features like memory protection, secure booting, and encryption support are included in Express Logic’s RTOS. Microsoft hopes to improve device security and lower risks in linked environments by integrating these security features into its IoT ecosystem.
Prospects for the Future: What Does Microsoft Have in Store for IoT?
Microsoft’s larger goal of becoming a leader in edge computing and the Internet of Things includes the acquisition of Express Logic. As the use of IoT keeps expanding, Microsoft is probably going to:
- Expand the integration of ThreadX with Azure services to enable smooth communication between devices and the cloud.
- Improve edge computing driven by AI to facilitate intelligent device-level decision-making.
- To stop cyberattacks in connected areas, extend IoT security solutions.
- Form alliances with hardware producers to guarantee Azure RTOS is widely used.
Conclusion
In the IoT sector, Microsoft’s acquisition of Express Logic is revolutionary. Microsoft is enabling scalable, secure, and real-time IoT solutions for a variety of sectors by including ThreadX RTOS into its Azure IoT ecosystem. Microsoft’s position as a leading player in the Internet of Things industry is cemented by this acquisition, which guarantees that companies may use real-time data processing to boost productivity and creativity as the demand for smart, connected devices keeps growing.
Full Article:
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