How Apple Is Coping with Qualcomm Onslaught in Germany


Mar. 1 2019, Updated 11:10 a.m. ET

Apple finds workaround to the problem

In December, a German court sided with Qualcomm (QCOM) and banned Apple (AAPL) from selling certain iPhones built using Intel-made (INTC) modem chips in the country. The court decision forced Apple to pull the affected iPhone models from stores in Germany, thereby limiting production selection for its customers in the largest economy in Europe.

But Apple has since found a workaround to this problem. Since the dispute centers on Apple’s use of Intel chips in certain older iPhones, Apple has worked around this problem by only selling older iPhones with Qualcomm chips in Germany, which has allowed Apple to continue meeting demand for its older iPhones in the country.

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Apple’s market share dipped in Germany after product ban

According to data from StatCounter, Apple’s iOS held 30.4% of the mobile operating system market in Germany in January this year. The market share declined from 36.3% in November, just before Apple was banned from selling certain iPhone models. Google’s (GOOGL) Android capitalizes on Apple’s woes, raising its share of Germany’s mobile operating system market to 68.6% in January from 62.3% in November. Samsung (SSNLF) and Microsoft (MSFT) each held less than a 1.0% share of the German mobile operating system market in January.

Apple generated $20.4 billion in revenue from Europe in its first quarter of fiscal 2019, which ended in December. Europe is Apple’s second-largest market region in terms of revenue.


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