Multiple iPhone models Banned by China
A court has granted Qualcomm an ultimatum against Apple in China. Apple has been banned in China from importing and selling multiple iPhone models.
The injunction precisely bans Apple from selling the iPhone models 6s, 6s Plus, 7, 7 Plus, iPhone 8, 8 Plus, and iPhone X. However, the iPhone XS, XS Max, and XR are certainly not on the list. Hence, these recent models will still be sold in China. Also, it is important to note that this ban is only valid in the case of China. The Chinese courts don’t have any jurisdiction when it comes to global markets.
“Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world,” Apple quoted in a statement. “All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated. We will pursue all our legal options through the courts.”
The Two Qualcomm Patents:
The court orders versus Apple were built on two patents by Qualcomm that Apple is expectedly violating. One of these patents allows users to calibrate or reformat the size, appearance of pictures, etc. Whereas the other includes the manner applications are organized on a smartphone. Hence, these are the two patents Qualcomm is utilizing against Apple.
“We deeply value our relationships with customers, rarely resorting to the courts for assistance, but we also have an abiding belief in the need to protect intellectual property rights,” Qualcomm said in a statement. The company is upset that, “Apple continues to benefit from our intellectual property while refusing to compensate us.”
Qualcomm v/s Apple:
Apple and Qualcomm have been fighting since 2017. In order to reverse the court’s decision, an appeal has been filed by Apple. Hence, in April 2019, both the companies are going to battle face to face in court. The previous week, the president of Qualcomm, Cristiano Amon said that the fight between the two companies is going to end soon.
An analyst at Wells Fargo Securities, Aaron Rakers quoted that there are not many chances of Apple getting impacted in this case. Because it doesn’t include the new phones, which have been loaded with iOS 12, the recent operating system. So, it doesn’t infringe the patents in that case.
Since Apple is one of the major phone making companies that don’t pay any licensing fees to Qualcomm. Apple no longer uses Qualcomm chips which were the largest profit source for Qualcomm. The reason behind this is that Qualcomm demands a percentage of each handset’s selling price. Apple claims that Qualcomm should be paid the price of the component i.e. chips, not the handset and which is correct with no doubt. Hence, this could be the reason why Qualcomm is forcing Apple to the negotiate on a deal in what it says is a commercial debate.