Qualcomm secures ban on Apple’s iPhones in China
Previously, we saw that Qualcomm (QCOM) secured a ban on certain Apple (AAPL) iPhone models, as the German court found the latter to be in violation of a hardware patent. This ruling came ten days after Qualcomm secured an iPhone ban in China (FXI), which contributes almost 20% towards Apple’s revenue.
On December 10, the Fuzhou Intermediate People’s Court in China ruled that Apple infringed on two of Qualcomm’s software patents that enable users to adjust photos and manage applications via the touchscreen. The court imposed a sales ban on six older versions of the iPhone in China.
Apple sells iPhones despite the ban
Despite the sales ban, Apple continued to sell certain versions of the iPhone in China claiming that the ban only applies to iPhones running on an older OS (operating system). In order to continue selling iPhones while complying with the court ruling, Apple launched its iOS 12.1.2 software update, which modifies functions that use Qualcomm’s patents that the Chinese court found to be infringed.
Qualcomm claims that Apple is violating the Chinese court order even with the software update. The chip supplier is demanding an immediate ban on iPhone sales.
Apple’s software update backfires
The software update shows Apple’s desperation to avoid the sales ban in China. This act of haste seems to have backfired. According to a Forbes article and several Twitter messages, iPhone users who upgraded to iOS 12.1.2 are facing issues with the mobile data connection. This issue has expanded to all iPhone models across North America, South America, Europe, and Asia. Apple is addressing the software issue.
Meanwhile, the iPhone maker is appealing the decision of the Chinese and German courts. Next, we will look at the direct and indirect impact of the iPhone sales ban on all parties and countries involved.
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