Qualcomm Files Lawsuit Seeking to Ban iPhone Sales and Manufacturing in China

Qualcomm files lawsuits in China to ban iPhones Bloomberg

Qualcomm Inc. filed lawsuits in China seeking to ban the sale and manufacture of iPhones in the country, the chipmaker's biggest shot at Apple Inc.so far in a sprawling and bitter legal fight, Bloomberg News reports. And, however unlikely, such a ruling would have a huge effect on Apple since the iPhone provides two thirds of its revenue.

In its lawsuit, Qualcomm reportedly claims that Apple is in violation of three patents, none of which are essential to any industry standards - meaning Qualcomm isn't obligated to license them. This is the latest strike in a legal war between the two companies, which started out in the USA and has since expanded worldwide.

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

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This legal battle kicked off in January, when Apple filed a lawsuit claiming that Qualcomm was holding payments for ransom. However, China has been Apple's fastest-growing market until pretty recently, and it's where iPhones are manufactured. Qualcomm charges a percentage of the price of each handset regardless of whether it includes a chip from the company, and Apple is sick of paying those fees.

"Apple believes deeply in the value of innovation, and we have always been willing to pay fair and reasonable rates for patents we use".

If Qualcomm were to succeed, Apple's ability to quickly assemble iPhones would be gutted, while sales of iPhone devices would take a heavy hit. 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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