Apple Says China iPhone Ban Would Force Settlement With Qualcomm


Chipmaker Qualcomm is asking China to ban sales of Apple's Xr, Xs, and Xs Max iPhones in the country, reports Engadget. Earlier this week, Qualcomm saw some success in the Chinese courts and got most iPhones banned from sale and import into China due to patent infringement.

If this satisfies the court, Apple would be allowed to continue selling the affected iPhone models, namely the iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus and iPhone X.

Apple and Qualcomm are not the best of friends at the moment, and the relationship breakdown is playing out in the courts.

The ruling from a local court - which came as Washington and Beijing are locked in sensitive trade negotiations - pivoted the battle over patent fees to the world's largest mobile arena.

"Apple will be forced to settle with the Respondent, causing all mobile phone manufacturers to relapse into the previous unreasonable charging mode and pay high licensing fees, resulting in unrecoverable losses in the downstream market of mobile phones", the iPhone maker said in the December 10 filing to the court. Apple didn't respond to requests for comment.

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If Ming-Chi Kuo is correct, iPhone sales numbers will slot somewhere between 38 and 42 million units during 2019's first calendar quarter, which will technically be Apple's second fiscal quarter of the year.

Well, whatever the thing is, the new order from the court has the potential to disrupt Apple's business in China.

Apple argues the injunction should be lifted as continuing to sell iPhones does not constitute "irreparable harm" to Qualcomm, a key consideration for a preliminary injunction, the copy of its reconsideration request dated Dec 10 shows.

Apple warned that the ban would hurt Chinese manufacturers like Foxconn and noted that it had created 5 million jobs across the countrys supply chain. As a result, Apple announced a few hours ago that it will launch a software update to resolve any possible patent infringement. The chip maker is also moving to get even this year's iPhones ban as well. All three venues offer it the chance - if successful - to shut down or limit the sale of the iPhone, a product that generates the majority of Apple's revenue.

Apple has asked a Chinese court to reconsider the ban.