Page 24 - ARUBA TODAY

A24 TECHNOLOGY
Thursday 18 april 2019

This March 19, 2018, file photo shows the Netflix app on an iPad
in Baltimore. Netflix reports financial results Tuesday, April 16,
2019.
Associated Press
Netflix adds 9.6M

In this Jan. 9, 2019, file photo a sign advertises 5G at the Qualcomm booth at CES International subscribers in 1Q as
in Las Vegas. In this Jan. 9, 2019, file photo a sign advertises 5G at the Qualcomm booth at CES
International in Las Vegas. Associated Press competition heats up

Apple, Qualcomm settle bitter By MICHAEL LIEDTKE $355.85 after the numbers
AP Technology Writer
came out.
dispute over iPhone technology SAN FRANCISCO (AP) — In a discussion streamed
Netflix kicked off the year on video, Netflix CEO Reed
with the biggest subscriber Hastings likened the past
By MICHAEL LIEDTKE The deal requires Apple to it contended it was owed gains in the history of its vid- quarter to a “perfect clean
AP Technology Writer pay Qualcomm an undis- for its patented technol- eo-streaming service, but it shot” down the middle of a
SAN FRANCISCO (AP) — closed amount. It also in- ogy in the iPhone. Apple’s still managed to disappoint golf course’s fairway while
Apple and mobile chip cludes a six-year licensing iPhone suppliers, including investors by forecasting a drawing comparisons to
maker Qualcomm have agreement that likely in- Foxconn and Pegatron, springtime slowdown. Tiger Woods’ victory in the
settled a bitter financial volves recurring payments wanted another $27 billion The strong first-quarter per- Masters tournament.
dispute centered on some to the mobile chip maker. from Qualcomm. formance coincided with Netflix tested the bounds
of the technology that en- Investors reacted as if it The dispute was clearly be- Netflix’s biggest U.S. price of its popularity with a re-
ables iPhones to connect were a resounding vic- ginning to hurt all parties increases and emerging cent a recent price hike
to the internet. tory for Qualcomm. The involved, motivating them streaming challenges from that raised the cost of its
The surprise truce an- San Diego company’s to settle, said technology Walt Disney and Apple, most popular plan to $13 a
nounced Tuesday came stock soared 23% to close industry analyst Patrick two of the world’s most month, a $2 increase. New
just as the former allies Tuesday at $70.45. Apple Moorhead of Moor Insights popular brands. U.S. subscribers had to start
turned antagonists were shares edged up 2 cents to & Strategy. The video service add- paying the higher price in
facing off in a federal court $199.25. Qualcomm also held an- ed 9.6 million subscribers January, but it only recent-
trial that was supposed to Neither Apple nor Qual- other bargaining chip: It worldwide during the first ly started to hit existing cus-
unfold over the next month comm would comment makes the modem chips quarter of 2019, topping tomers.
in San Diego. The resolution beyond a brief statement needed for future smart- the projections of both The company said it
abruptly ended that trial, announcing they had re- phones to work with the Netflix’s own management doesn’t expect the price
which also involved Ap- solved their differences. next generation of high- and Wall Street analysts. It’s increase to trigger signifi-
ple’s key iPhone suppliers. Details about how much speed wireless networks the most subscribers that cant cancellations, though
Apple and its iPhone sup- known as “5G.” Two of Netflix has gained during its second-quarter forecast
pliers will be paying Qual- Apple’s biggest rivals, any three-month stretch implies otherwise. It expects
comm could emerge in Samsung and Huawei, are since the Los Gatos, Cali- to add just 300,000 U.S. sub-
court documents or when already getting ready to fornia, company unveiled scribers from April through
the companies announce introduce 5G models. The its streaming service 12 June, down from 700,000
their latest financial results. iPhone would have been years ago. at the same time last year.
Apple is due to report its at a disadvantage if it The surge announced Tues- Competition facing Netf-
quarterly results on April 30 didn’t have a pipeline to day left Netflix with near- lix will heat up toward the
while Qualcomm is sched- Qualcomm’s chips. ly 149 million subscribers end of this year when both
uled to release its numbers Falling behind the compe- through March. Disney and Apple plan to
on May 1. tition isn’t something Apple Netflix expects to add an- start selling their own video-
Apple had been seeking can afford with its iPhone other 5 million subscribers streaming services backed
at least $1 billion for money sales already falling . during the current quarter by big budgets.
that Qualcomm was sup- “Ultimately, Apple realized ending June, but that pro- Disney’s offering, due out
posed to rebate as part of this was more about two jection fell well below ana- in November, could be
an earlier licensing agree- kids fighting in the sand- lysts’ forecast. It would also a bigger threat because
ment. Apple had begun box and they have bigger represent a decline from it will feature a library of
to have misgivings about issues ahead with 5G and the 5.9 million customers classic films supplemented
that deal as it added more iPhone softness versus bat- that the service picked up with original programming
features to its increasingly tling Qualcomm in court,” during the same period last cooked up by a company
popular line-up of iPhones. Wedbush Securities analyst year. with a proven record of
Qualcomm was seeking $7 Daniel Ives wrote in Tues- Netflix’s stock dipped 1% churning out crowd-pleas-
billion for unpaid royalties day research note.q in extended trading to ing entertainment.q