In legal terms Qualcomm has been granted preliminary injunctions against Apple in Fuzhou China that results with immediate ban on import and sale of iPhone 6S, 6S Plus, 7, 7 Plus, 8, 8 Plus and iPhone X.
Chinese courts have granted a preliminary injunction to U.S. chip-maker Qualcomm which would effectively ban the majority of older iPhone models from sale in China, in a possible trade war counter attack.
Apple claims the injunctions have limited impact on its Chinese business because it only affects iPhones that operate on older versions of iOS, which could potentially violate the patents Qualcomm has through China's patent office.
Apple calls it a "desperate move" by San Diego-based Qualcomm.
Qualcomm accuses Apple of also infringing on these (and other) patents throughout the rest of the world.
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The injunctions relate to two patents: one of which pertains to the adjusting and resizing photographs, while the other deals with app management when using a touch screen "when viewing, navigating and dismissing applications on their phones". The court order to halt iPhone sales could further set Apple back in the mainland China market, traditionally seen as an important market for the company. It is the first court order issued in China that seeks to curtail iPhone sales.
"Apple continues to benefit from our intellectual property while refusing to compensate us", Rosenberg added.
The tech giant said it will pursue a legal response in court.
Apple Inc. shares were trading at $169.91 per share on Monday afternoon, up $1.42 (+0.84%). Apple could work around the infringement accusations by upgrading all of its devices to a new operating system, according to a research note by China Merchants Securities in Shanghai. You do have to wonder, however, since Apple seems to be able to cope just fine without them and UI software is a core strength, why it didn't just develop its own way of doing that stuff in-house.
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, China's top homegrown maker of premium-priced smartphones, whose CFO was arrested this month for allegedly violating us sanctions.
However, Qualcomm believes its modems have been completely eliminated from the most recent iPhones, a belief that is supported by independent teardowns.