A Chinese court has ordered Apple to restrain the sale and import of most iPhone models as a result of the trade war between the United States and China. Qualcomm had claimed that Apple violated its patents related to photo resizing and managing apps on touchscreen.
On November 30, the Fuzhou Intermediate People's Court ruled in favour of the chip-maker Qualcomm and issued the order barring the import and sale of iPhones. Qualcomm claims that Apple violates two of its patents in the iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus and iPhone X. The patents allow people to edit and resize photos on a phone and to manage apps by using a touchscreen, according to Qualcomm.
The concerned lawyers said that an appeal process could take the case up to the Fujian provincial high court and then go as far as the Supreme Court in Beijing, a process that would likely take many months given the high-profile nature of the case.
To enforce the ban, Qualcomm separately will have to file complaints in what is known as an enforcement tribunal, where Apple will also have a chance to appeal.
Apple, on its part, has claimed that the entire portfolio of iPhones remain on sale at the moment, and has filed a request of reconsideration with the court.
Which iPhone models are banned and which are not?
As part of the order, all iPhones ranging from iPhone 6 to iPhone X would be banned from being sold in the country. The latest models like iPhone XS, iPhone XS Plus or iPhone XR etc., are not included in the case, because they were not released at the time when the case was filed. The phones covered by the ban make up about 10% to 15% of current iPhone sales in China, according to Daniel Ives, analyst at Wedbush Securities.
The practical effect of the injunction is not yet clear. The ruling was announced publicly Monday and put into effect last week, but Apple said in a statement that all iPhone models remain available in China. The company was still selling some of the models in question, like the iPhone 7 and iPhone 8, on its China website on Tuesday.
Apple's reaction on the matter -
"Qualcomm's effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world," the company said in a statement to Reuters.
The ban, if enforced, could affect Apple's business in the world's biggest smartphone market.
According to the Washington Post, the country makes up a fifth of Apple's annual revenue, which means its sales, which are already said to be low, could witness a significant decline. But then, the outcome of the matter still remains unknown, considering Apple has already initiated the appeal process.
Qualcomm is a key technology vendor to China’s rising smart phone brands such as Xiaomi Corp, Oppo, Vivo and OnePlus, while Apple competes directly against Huawei Technologies Co Ltd [HWT.UL], China’s top homegrown maker of premium-priced smartphones, whose CFO was arrested this month for allegedly violating U.S. sanctions.
Here is the detailed story: CFO of Huawei Technologies arrested this month for allegedly violating U.S. sanctions
Link: https://www.varindia.com/news/huawei-cfo-meng-wanzhou-faces-iran-fraud-charges--prison-for-30-years
Link: https://www.varindia.com/news/us-china-trade-warus-imposes-25-tariff-on-50-billion-in-chinese-goods
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