This is Why Most iPhones Will No Longer Be Available in China
Dec 16 2018
Apple warned that the ban would hurt manufacturers like Hon Hai Precision Industry Co.
Apple IncAAPL.O , facing a court ban in China on some of its iPhone models over alleged infringement of Qualcomm Inc QCOM.O patents, said on Friday it will push software updates to users in a bid to resolve potential issues. "All iPhone models remain available for our customers in China", Apple said in a statement to the news outlet. 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.
Chipmaker Qualcomm is asking courts in China to ban sales of Apple's latest iPhone models XS and XR after winning a preliminary injunction against older models. Nonetheless, Qualcomm's attorney representing the company in this matter, Jiang Hongyi, says, "We plan to use the same patents to file suit against the three new iPhone models". But Qualcomm isn't the only one accused of playing dirty - there are reports that Apple is also fighting back by "aggressively" recruiting for chip and software engineers in San Diego, a move squarely aimed at Qualcomm, who is based in San Diego.
According to Apple, the scope of the ban is baseless given that the two patents Qualcomm claims it has breached are not specific to the operating system used by Cupertino in its latest smartphone line uses.
The U.S.is now in the midst of reforming its laws regarding tariffs on imports from China. "It's all a game of high-stakes poker and Apple is going to fight this Qualcomm case with an iron fist", said Daniel Ives, an analyst at Wedbush. Ltd. -known also as Foxconn - and other suppliers.
The court action also comes amid a backdrop of increased trade tensions between Washington and Beijing and the arrest in Canada of a top executive of Chinese tech giant Huawei at the request of U.S. authorities.
However, the chipmaker filed its complaint a year ago and that's why it did not include latest Apple's flagship phones for 2018.
"In the past, large companies preferred to solve such disputes in the USA, but now the moves by Apple and Qualcomm show their optimism in China".