qualcomm's ceo steve mollenkopf sat down with us earlier on "squawk on the street" and david faber is us at post nine to talk about that conversation and how these guys manage to work together now. >> yeah. of course, it was an apt song we did lead with. mollenkopf made it clear they want to be friends and they are friends and would not spend a good deal of time answering our questions in terms of what happened to change the tenor of the conversation, if there were even conversations, given how heated the rhetoric was from both sides you need only look at the opening statements yesterday in court in san diego in front of judge curiel to see where the two companies were coming from in their dispute over qualcomm's or at least what apple would say, qualcomm essentially double dipping, saying that you got to buy our chip send and although you also have to buy our intellectual property, because you don't get that with the chip set, likening it to going to a kentucky fried chicken where they want to charge you $17 for the chicken but another counter to get the license to buy the chicken an

mollenkopf, i think, in the spirit of cooperation now between the two companies did not really want to but you're right, you have to imagine that apple looking at the possibility of not having 5g chip sets available for it as its competitors move forward with their 5g phones, that had to figure prominently in their thinking one would expect that speculation to some extent. we don't know what they're getting a phone, not sure we would. yesterday in court, qualcomm's lawyers had referenced 13 bucks a phone, that was evan chessler, i want to read the transcript more thoroughly. that was reported at the time. op opening arguments were being made in judge curial's courtroom while the settlement was coming out. >> we were expected to hear from cook and mollenkopf in court. >> going to testify. >> so where does it come out per phone? listen, six-year agreement, chip sets, only a positive for qualcomm certainly it removes an enormous threat to the company's business model it faced if the trial moved forward and if it ended badly for it don't want to forget about the ftc, which we still haven't

emily: i sat down with steve mollenkopf and he said something that surprised me.e said he still expects to work with apple after this. >> i think there is no better opportunity and partner for qualcomm and to work with apple. it makes sense that the technology leader in mobile be partnered with the product leader in mobile. the way we think about the business, eventually you get the disputes figured out and head into a different period. i hope to be in that period schedule we the have already laid out. emily: what are the chances of those two companies working together after this bitterness? ian: you would be surprised. so many times, we see these knock-down, drag out fights. samsung, for example, and all of a sudden you see in an iphone. particularly in this case, these are two companies that kind of really need each other. what qualcomm is good at is what apple will maybe next year or the year after neat if suppliers can't close that gap with qualcomm. that's part of what is going on here. emily: is this showdown preventing apple from moving to 5g? the technolog

steve mollenkopf were expected to testify which really upped the ante. does this agreement mean that the core issues go away? apple is saying they are charging too much, qualcomm is these are the rules these , are the patents, you have to pay. this is not going to change. ian: there's a couple of factors at play here. remember the ftc trial accusing qualcomm of the practices you had just mentioned. we still do not have a result. we still have to see how that will play out. but fundamentally, you have got technology and licensing. qualcomm has come up throughout its history, faced legal challenges trying to get these license fees reduced. it's managed to by and large fend them off. of course, we're likely to see more. and as companies come and go, in terms of the power of their customer base, they're going to try to challenge this because it helps their profits. emily: you have reported that apple had postponed 5g this year, perhaps considering it next year. does this mean apple could have 5g even sooner? could it be in the phones that are unveiled as we

mollenkopf was interested in burying the hatchet.lcomm is down today. >> it's a moth to flame. >> a lot more focus on 5g as you have been talking about, jim. >> right. >> given that, it refocused people on the opportunity, in terms of the 5g chip sets, apple and the larger ecosystem you mentioned ericcson earlier in terms of that side. >> right some sellers are coming into tech today, interesting. >> they do say they think we're past the bottom of the cycle. >> they did. >> yeah. >> okay. >> and then samsung, of course, all of south korea was weak because of these reports about the galaxy fold. >> and apple stock has been going up ever since. samsung is still very much doing a will the of stuff, 5g, cornered their own market. i've never seen a situation where everyone was buying a stock off the phone and now they're selling. >>> let's get to the justice department and listen to the attorney general, william barr. >> good morning, everybody thanks for being here this morning. as you know, march 22nd, special counsel robert mueller con

neither was the royalty rate per iphone but the ceo steve mollenkopf did talk about the deal. take a listen. >> there's about $2 of additional earnings as a result of this deal broadly when the products begin to ship which is significant obviously for us but remember, they're a big customer and so we're very happy to have an ability to move forward. >> a big customer is right the value of past royalty payments due to qualcomm, analysts say about $7 billion. for apple this deal is also significant though paving the way for a new 5g iphone because qualcomm is the only game in town right now when it comes to the 5g chips back to you. >> where does this leave intel which i think was talking to apple among others about producing a 5g chip? >> yes that's such a fascinating part of this story, because you had apple and qualcomm they come out,s shock the world. then just a few hours intel comes out and makes some surprising news of its own in saying, listen, we're going to exit the 5g smartphone business. i catch up with chris rolen, he covers intel he says you see bob swan, ceo, sign

apple-qualcomm deal that intel could not see a path to profit on those 5g modems after cook and mollenkopf reached that deal that intel is exploring what to do with that i.t. and employees despite the modem exit he still sees opportunities 5g networking interesting, melissa, because when they made that exit you actually saw the stock pop some thought it was a good thing and they're getting out of the lower margin business. though it's interesting, some aren't so sure and i checked with ramsey who also discovers his name and he got those arguments and he said did that raise a certain red flag for intel investors that this company just couldn't execute on a business line outside of their core operations. i'm sure we'll probably get questions on the conference call and that is starting right now and i'll be on it. guys, back to you. >> that is an interesting take given the reaction when they did exit that business and thanks, josh, we'll check in with you later on what's on with intel here? is this a chip problem is this an intel problem this is all important because we're staring at an smh c