Published: Sat, October 14, 2017
Science | By Hubert Green

Qualcomm sues to block Apple from selling the iPhone in China

Qualcomm sues to block Apple from selling the iPhone in China

The product provides nearly two-thirds of Apple's revenue. Bloomberg notes that the company's suits are based on three "non-standard essential patents" that cover power management and a touch-screen tech like 3D Touch used in Apple's current iPhones.

"Apple employs technologies invented by Qualcomm without paying for them", says Christine Trimble, a spokesperson for Qualcomm. The analyst further notes that a vacuum left by Apple could be filled by Chinese competitors very quickly, and believes that Qualcomm's move is aimed at getting Apple back into negotiations.

It seems exceedingly unlikely that sales of any iPhones will be banned.

As we've written a number of times, Qualcomm is embroiled in a number of lawsuits involving Apple.

Apple is waging a global legal battle on Qualcomm's long-held practice of charging a percentage of the total price of iPhones and other Apple devices as a licensing fee for its patents.

Apple is now rushing to manufacture as many iPhone 8, 8 Plus and iPhone X models during its busiest sales period of the year.

Qualcomm has countered with a patent suit and argued that Cupertino, California-based Apple encouraged regulators from South Korea to the U.S.to take action against it based on false testimony. It's been repeatedly fined for similar behaviors, with the latest ruling coming down yesterday, when it was fined $774 million by Taiwan's Fair Trade Commission.

However, Apple has now cut off those payments costing Qualcomm an estimated $2 billion a year in revenue. 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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