The battle between Qualcomm and Apple is heating up and this could get very ugly. CNBC is reporting that Qualcomm is seeking a U.S. import ban on Apple’s flagship iPhone. If you’re not familiar with what’s happening, Apple has accused Qualcomm of overcharging them in royalty fees. Apple’s response has been not to pay the royalty fees and they’ve taken Qualcomm to court to recoup the overcharges. Based on this non-payment of royalties, Qualcomm is now seeking this import ban on the Apple iPhone.
Qualcomm is reportedly seeking to ban the import of iPhones into the United States, Bloomberg reported Wednesday, citing one source familiar with the matter.
The news follows a decision by Apple last week in which the company said it would stop paying royalties to Qualcomm until an ongoing dispute over the payments is resolved. Qualcomm lowered its fiscal third-quarter guidance to a range of $4.8 billion to $5.6 billion, down from $5.3 billion to $6.1 billion, following Apple’s decision.
As far as we know, there hasn’t been any official paperwork filed for this import ban but it sounds as if that process is underway. If Qualcomm is successful in getting this ban put into play. it would have a huge impact on the anticipated tenth anniversary iPhone and its sales. For more backstory, Apple has been developing their own technologies and it’s been speculated that they would eventually stop using Qualcomm technologies in their devices. Of course, this would have a huge impact on Qualcomm’s bottom line as well.
So right now, this is going to be a rather large and messy fight in the courts between two major players in the mobile space. If this latest report is true, Qualcomm may try and leverage the import ban to get Apple to pay up. This is going to be an interesting legal battle to follow.Source: CNBC