Qualcomm files lawsuits in China to ban iPhones

Qualcomm files lawsuits in China to ban iPhones

Although China isn't Apple's most profitable country for iPhone sales, it is where the majority of the devices are manufactured. And, however unlikely, such a ruling would have a huge effect on Apple since the iPhone provides two thirds of its 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.

Cupertino's legal team sued Qualcomm for $1 billion claiming that the company's patent licensing practices abused its position as the world's leader chipmaker. "Apple employs technologies invented by Qualcomm without paying for them", Trimble added.

The latest suits come at a crucial time for Apple.

Apple is now rushing to manufacture as many iPhone 8, 8 Plus and iPhone X models during its busiest sales period of the year. Suppliers and assemblers in China are rushing to churn out as many new iPhones as possible ahead of the key holiday season, so any disruptions would likely be costly. In the most recent development, Qualcomm is now filing a lawsuit against Apple with the intent of having all iPhone production and sales halted in China.

This legal battle kicked off in January, when Apple filed a lawsuit claiming that Qualcomm was holding payments for ransom. In July, it filed a similar claim in the United States, pointing to six patents that it said Apple was in violation of.

Between the $2 billion in licensing fees Apple is refusing to pay and the $773 million fine from Taiwan's Fair Trade Commission, Qualcomm is now looking at an empty dinner plate. 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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