This is Why Most iPhones Will No Longer Be Available in China


Qualcomm said on Monday the ban would affect the iPhone 6S through the iPhone X models, and was issued by the Fuzhou Intermediate People's Court in Fujian province, which found that Apple violated two of Qualcomm's patents. We have to wait further for at least a few more days to see how the Chinese court decision impacts sales on older iPhone models. Apple, which has filed a request for consideration, argues the decision harms China's interests by potentially raising the royalties and fees that phone-makers pay Qualcomm. The preliminary order remains effective until the court makes a final ruling.

Now, Apple is saying China's latest ruling could influence a broader global conflict.

It's no secret that Qualcomm (NASDAQ:QCOM) and Apple (NASDAQ:AAPL) have a relationship that is in the toilet, so to speak. Something that all the aforementioned iPhone models are already capable of.

These patents at the centre of this dispute are related to resizing pictures and managing application on a touch screen.

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"Also, the dispute seems to only target Apple's older iOS 11 operating system". While Qualcomm says the ban covers iPhones 6S through X, Apple says all iPhone models remain available for customers in China.

The Chinese government "may suffer hundreds of thousands of tax losses" from the iPhone ban because of lost taxes from sales of the devices, the company also said, citing estimates of 50 million units sold in the country in 2017.

Qualcomm was said to have withheld over $1 billion in rebates owed to them over the fact that Apple gave information to legal authorities, which may have led to an $857 million United States dollars fine levied against Qualcomm in South Korea.

However, the chipmaker filed its complaint a year ago and that's why it did not include latest Apple's flagship phones for 2018. "It also highlights that we have made significant progress in protecting intellectual property rights", Yang added. However, if U.S. President Donald Trump decides to increase tariffs on smartphones, Apple officials have disclosed that the company might need to move production operations outside of China, since a large portion of iPhones is manufactured by the Cupertino giant's Chinese partner companies.

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