The San Diego based company Is all aiming to cut off the link of Iphones from Chinese market. There is almost two-third of revenue of provided by the product. Christine Trimble, a spokeswoman of Qualcomm informed the sources that the company has already filed the suits in a Beijing Intellectual property claiming patent infringement and seeking injustice relief. She further added that Apple wants to buy technology invented by Qualcomm without paying for them.
There is a dispute going on in the market world between the two giant companies for the Qualcomm’s technology licensing business. Qualcomm makes phone chips and gets revenue from the same .But that is not the main source of income for the company. It gets most of its revenue by charging fees for the patents that cover the fundamentals of all modern phone systems.
It is not a good time for Apple to be out of Chinese market. It has just introduced IPhone 8 and X Models aimed at reasserting leadership in the market that’s steeped in competition from fast-growing Chinese makers. Suppliers in China are working to churn out as many as IPhones as possible.
This all started earlier this year with Apple filing an antitrust suit against Qualcomm arguing that the chipmaker’s licensing practices are unfair. It also abuses its position as the biggest supplier of chips in Iphones. It has been a headache for Apple to pay the price for each handset sold regardless of whether it includes a chip from Qualcomm or not.
Earlier this week, there has been a fine imposed on Qualcomm of NT$23.4 billion by the Taiwan’s Fair trade Commission, a ruling the company is appealing.
The company has asked the United States to impose ban on the import of some versions of I Phone in relation with some patent issue.
The licensing payment to Qualcomm that was about 2 billion dollars has already been cut soon after its first legal salvo. QUALCOMM stock is down to 19 percent compared to the 35 percent last year gained by the benchmark Philadelphia Stock Exchange semiconductor index. Apples are higher at this point. It shares up to 36 percent this year.