Apple Drops After China Court Ban in Dispute with Qualcomm

"All iPhone models remain available for our customers in China". That's right: The order requires Apple to stop selling the iPhone in China.

Meanwhile, Apple has already issued a statement claiming that all iPhone models continue to remain available in China. Apple, on the other hand, accused Qualcomm of playing underhanded tricks by targeting the company in China for a patent that it claims has already been invalidated in global courts. Now, it appears that the ball is out of the legal courts and its now resting between both companies.

"If Apple is violating the orders, Qualcomm will seek enforcement of the orders through enforcement tribunals that are part of the Chinese court system", Rosenberg responded in a statement. One involves letting smartphone users adjust and reformat photos and the other is for managing apps using a phone's touch screen. “Apple continues to benefit from our intellectual property while refusing to compensate us. Apple could work around the infringement accusations by upgrading all of its devices to a new operating system, according to a research note by China Merchants Securities in Shanghai.

Another analyst, Toni Sacconaghi of Bernstein, agreed that the injunctions will likely have little effect on Apple.

While this "win" for Qualcomm does not represent the end of this legal battle, it's worth noting that China, Hong Kong and Taiwan do account for about one-fifth of Apple's market, with $265.6 billion in sales in the last fiscal year alone. Apple says it will fight Qualcomm's "desperate move" in the courts.

Apple's latest smartphones, the iPhone XS, iPhone XR, and iPhone XS Max will not be affected by the decision because they ship with iOS 12 pre-installed, which can also run on all the phones named in the court decision.

According to CNBC, one of the media Apple talks with, they filed an appeal but speaking to legal experts, the ban stays in place until the legal appeal gets resolved.

Qualcomm further notes that it has filed additional actions against Apple for other offenses and is seeking similar relief.

Apple's shares fell in early trading, declining by around 2pc and falling below the price at the start of the year.

Qualcomm is a key technology vendor to China's rising smart phone brands such as Xiaomi Corp, Oppo, Vivo and OnePlus, while Apple competes directly against Hauwei Technologies Co Ltd, China's lone homegrown maker of premium-priced smart phones. "Apple is a direct competitor to the biggest companies in China, whereas Qualcomm is a supplier", Robinson said.

  • Eleanor Harrison