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Qualcomm plans to ban iPhone XS and iPhone XR in China

Written by Shaheryar Ehsan ·  52 sec read >

Qualcomm’s recent lawsuits against Apple in China have been going pretty successful and the chipmaker intends to continue its winning streak against the mobile giant with plans to ban iPhone XS and XR as well. This Monday, Fuzhou Intermediate People’s Court banned the sale of iPhone 6s to iPhone X across China due to a lawsuit between the two American companies. The 2018 flagships weren’t affected by the ruling but Qualcomm is coming back with another lawsuit to permanently eliminate Apple’s retail presence in China.

Apple’s take on the ban is pretty simple saying that it would ultimately cause a massive loss in jobs in China. It had created more than 5 million jobs by collaboration with companies like Foxconn but if Apple’s presence is disturbed, there could be a great loss in revenue for these companies.

The Cupertino based company is going settle disputes with Qualcomm to avoid further conflicts:

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.

Apple lost around 2.9 percent of their stock due to this filing and losing the lawsuit. It has been a troubling year for Apple with sales of iPhones going at a record low and the usual hype surrounding Apple’s events slowly fading away. One must wonder what are the steps they could take to bounce back now.

Source: Bloomberg.

Written by Shaheryar Ehsan
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