Issues have heated up to a much higher level between Apple and Qualcomm as both of them have sued each other for different issues. Apple started the legal war by suing Qualcomm on the issue of overcharging on royalties. Apple has demanded a hefty amount of $1bn from Qualcomm in compensation. Instead of paying up, Qualcomm also sued Apple for making its modems worse in the iPhone 7. Apple reportedly did the experiment to match the performance of similar Intel cellular radios.
The International Trade Commission, ITC has been requested by Qualcomm to ban iPhone imports in the US. This action can be the worst in the history of Apple as it will lead the company to an unthinkable loss. US is one of the biggest markets of iPhone and if any such action is taken against Apple by ITC, it would be an unrecoverable loss for Apple.
This issue is actually far more serious than it seems. ITC has the power to impose the ban and Bloomberg’s statement in this regard is frightening for Apple too:
ITC processes cases more quickly
Qualcomm has yet not submitted a formal request in front of ITC to ban the imports and hence it may take some time. Also, Qualcomm is not new to this kind of legal war as South Korea’s Fair Trade Commission has already fined the company, an amount of $865 million for violating antitrust rules.
Qualcomm Having The Financial Crisis
Qualcomm is already in a trouble after Apple’s decision of not paying the royalties to it and as an icing on the cake, Tim Cook’s statement goes like:
Qualcomm has not made such an offer to Apple. I don’t believe anyone’s going to decide to enjoin the iPhone based on that. There’s plenty of case law around that subject. But we shall see.