Qualcomm Lawsuit May Ban Apple iPhone In China

Things are at least turbulent for Qualcomm in the Asian market. According to Bloomberg, the maker has just moved a lawsuit against Apple in the Chinese court.

Customers gather for the opening of an Apple Store in Hangzhou, Zhejiang province, January 24, 2015. Apple Inc chip supplier TSMC reported record net profit on Thursday and said the proliferation of low-priced, chip-hungry smartphones in China could see the company expand production in the world’s biggest handset market. REUTERS/Stringer (CHINA – Tags: BUSINESS TELECOMS) CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA

The lawsuit seeks to completely ban the production and sale of iPhones there. Why? A fight between the two brands that stretch since at least January this year. Initially, it was a government agency that scolded Qualcomm, claiming that the company was forcing the Apple Company to use some of its chips at a much higher price than usual for patent licensing.

Shortly after that, Apple set out to wage war against the former partner. First, it filed a lawsuit seeking compensation for the $ 1 billion home (approximately $ 3.14 billion). Then it simply stopped paying the royalties from the business to Qualcomm, and instructed its suppliers to move on with the “default.”
According to the news portal, Qualcomm would have tried to calm the mood by saying that the threat was unfounded and that it expected business to continue flowing as usual, but that if it were necessary, it would file a counterclaim against Apple. As you can see, the conversation did not work, and the chip maker tried to stop the commercialization of iPhones in both the US and China.

Okay, but is all this crap worth the effort and the money spent on legal procedures? Well, for Tim Cook’s class, the answer is a resounding yes. That’s because Qualcomm’s technology costs a lot to Apple. More exactly $ 18 per chip plus a 5% charge on top of the selling price of each cell phone. It is not yet known whether branded smartphones will be banned from China, but that would be an even greater loss for Apple.