Qualcomm files suit to block iPhone sales in China

14 October, 2017, 00:44 | Author: Pamela Mathis
  • Qualcomm files suit to block iPhone sales in China (update)

According to a Bloomberg report, Qualcomm has escalated its legal battle against Apple by filing multiple new lawsuits in China, seeking a ban on sale and manufacture of iPhones in the country. And, however unlikely, such a ruling would have a huge effect on Apple since the iPhone provides two thirds of its revenue. "Apple employs technologies invented by Qualcomm without paying for them", a Qualcomm spokesperson told Bloomberg. This is the latest strike in a legal war between the two companies, which started out in the United States and has since expanded worldwide. Qualcomm's suit says that Apple infringed on a trio of patents covering Force Touch and power management.

The latest suits come at a crucial time for Apple. The Greater China region accounted for 22.5 percent of Apple's $215.6 billion sales in its most recent financial year.

Qualcomm's latest move is part of its countersuit agains the antitrust claims Apple filed against it earlier this year.

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Although Apple doesn't use Snapdragon processors in its iPhones, it's still on the hook for numerous patents Qualcomm owns. The deal now in place still requires that Apple pay a fee regardless of whether the phone includes a Qualcomm chip, though. Apple also has asked iPhone and iPad manufacturers not to pay royalties to Qualcomm for failing to offer its standard essential patents in a fair, reasonable and non-discriminatory manner.

Soon after its first legal salvo, Apple cut off licensing payments to Qualcomm. Qualcomm stock is down 19 percent this year compared with a 35 percent gain by the benchmark Philadelphia Stock Exchange Semiconductor Index.

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