Blackberry Ltd (NASDAQ: BBRY) climbs today following their settlement with Qualcomm Inc. (NASDAQ: QCOM). Its stock reached its 52-week high of $11.74 today, about a nine percent increase in price. This follows yesterday’s payment from chip-maker Qualcomm. Yesterday, May 31, Qualcomm refunded $940 million after Blackberry disputed it overpaid royalties from 2010 - 2015. This settlement includes attorney’s fees and 10% interest.
Investors are hoping this will continue to help the company wedge itself into new spheres to make up for its significant declines in smartphone sales. This includes QNX, the auto software linking connected vehicles and developing platforms for autonomous vehicles. Unfortunately, signs on the contrary have come to the surface.
QNX reports in 2015, the most recent release available, over 40 automotive OEMs were using their technology, including Audi, Mercedes-Benz, GM, and the world’s largest automaker, Toyota. Since 2011, Toyota’s Entune system, which supports Bluetooth connectivity, music streaming, pre-integrated in app support, navigation capabilities and many other features, has run with Blackberry’s QNX. This has not doubt contributed to QNX’s dominance in infotainment, which was estimated at over 50% by IHS Market in 2015. In tandem with Qualcomm’s refund, it was announced by the Linux Foundation that all 2018 Camry’s will be supported with Automotive Grade Linux, dealing the first of many potential blows to Blackberry’s future hopes of continued prosperity by way of auto software.
No matter, following a rise in stock price and a nearly $1 billion refund, the Canadian company can rejoice, at least for the moment.