Qualcomm seeks to block US iPhone imports - report
As a part of the legal battle between the two firms, Qualcomm is reportedly looking to secure a ban on Apple's U.S. iPhone imports -- a move that would financially devastate the Cupertino tech giant if successful.
The move is in retaliation for Apple's decision to withhold billions of dollars in patent licensing fees, a source told Bloomberg on Wednesday. The petition will allegedly be filed through the U.S. International Trade Commission, which can potentially act faster than federal courts.
In January Apple leveled a $1 billion lawsuit against Qualcomm, charging it with abusing its market dominance to obtain unfair royalties, as well as forcing chip buyers to enter into patent licenses. A month ago, Qualcomm began a countersuit arguing that Apple broke contract and wants to pay less than fair market value for licenses.
The Americas are Apple's biggest market -- in the recent March quarter, the region generated nearly $21.2 billion in revenue. Most of that likely stemmed from the U.S., ensuring that Apple would want to fight tooth-and-nail against any ITC ban.
iPhones are considered imports in the U.S. because, despite Apple being headquartered in California, the devices are primarily assembled in China.
The move is in retaliation for Apple's decision to withhold billions of dollars in patent licensing fees, a source told Bloomberg on Wednesday. The petition will allegedly be filed through the U.S. International Trade Commission, which can potentially act faster than federal courts.
In January Apple leveled a $1 billion lawsuit against Qualcomm, charging it with abusing its market dominance to obtain unfair royalties, as well as forcing chip buyers to enter into patent licenses. A month ago, Qualcomm began a countersuit arguing that Apple broke contract and wants to pay less than fair market value for licenses.
The Americas are Apple's biggest market -- in the recent March quarter, the region generated nearly $21.2 billion in revenue. Most of that likely stemmed from the U.S., ensuring that Apple would want to fight tooth-and-nail against any ITC ban.
iPhones are considered imports in the U.S. because, despite Apple being headquartered in California, the devices are primarily assembled in China.
Comments
some me of the patents they leverage are not things that should be patented.
but forcing someone whose buying a piece of hardware to then license your patents at additional and exorbitant expense?
i see an FTC COLLISION WITH Qualcomm. Pretty much case closed if Apple is being factual.
With how much cash in the bank?
They certainly wouldn't be happy, but I think Apple would survive.
I think Apple ditching Qualcomm for Intel, or someone else will do far more damage to Qualcomm than anything it can do to Apple.
Qualcomm is the ant to Apple's boot.
They'd survive but there is just no way they are going to do that. The Commission is comprised of six members. By law they are bipartisan. Banning Apple from importing iPhones would not only harm Apple, but would impact the overall economy and consumers significantly. There is just no way they are going to do that over a company to company dispute. This is nothing but a Hail Mary from Qualcomm.
Apple could also file a restraint of trade claim in Federal court that could delay or prevent such a move, but barring that, there's no reason Apple couldn't aggressively spearhead a hostile takeover of Qualcomm. They have a market cap of $80 billion. If Apple offered Qualcomm shareholders $80-100 per share, they'd jump on it.
Just search on 'ftc sues qualcomm'. Lots of articles. Jan 2017
https://www.ftc.gov/news-events/press-releases/2017/01/ftc-charges-qualcomm-monopolizing-key-semiconductor-device-used
"According to the complaint, by threatening to disrupt cell phone manufacturers’ supply of baseband processors, Qualcomm obtains elevated royalties and other license terms for its standard-essential patents that manufacturers would otherwise reject."