Apple will tweak Chinese iPhones to comply with Qualcomm patent ruling
- Author: Latoya Cobb Dec 15, 2018,
Dec 15, 2018, 0:30
This ban was a result of victory to Qualcomm in winning a preliminary junction in the court.
Should the Chinese courts deem the software update to not be enough to avoid the ban, Apple concedes it would have no other option but to settle with Qualcomm. Apple will start rolling out these updates starting next week, which would most likely address 'possible concern about their compliance with the court order.' These updates will further address the minor functionality of the two patents issued by Qualcomm in the court.
However, the nature of the ongoing dispute between the two companies is unlikely to just go away anytime soon.
If Ming-Chi Kuo is correct, iPhone sales numbers will slot somewhere between 38 and 42 million units during 2019's first calendar quarter, which will technically be Apple's second fiscal quarter of the year.
The case against Apple is basically a part of a global patent dispute between the two tech giants which comprises of several lawsuits. Qualcomm successfully argued to the Chinese government its intellectual property coverage would protect those handset makers, allowing them to penetrate overseas markets. And it will come at a time when demand for Apple's most important product is slowing. "It's all a game of high-stakes poker and Apple is going to fight this Qualcomm case with an iron fist", said Daniel Ives, an analyst at Wedbush. Apple warned that the ban would hurt manufacturers like Hon Hai Precision Industry Co. - known also as Foxconn - and other suppliers. The ban would take some time to implement and was appealed by Apple, but it could potentially cost Apple millions of dollars a day.
The dispute in China comes at a time when Apple's Greater China sales - the third-largest contributor to Apple's revenue by region - are already under pressure as the USA company faces stiff competition from domestic players offering high-spec models with lower price tags than high-end iPhone handsets.
Tax losses would also be caused to the government, Apple says, as it pays millions in feeds for the devices it sells in the country.