China bans most iPhone sales after granting Qualcomm an injunction against Apple

A Chinese court has banned the sale and import of most iPhone models in a stunning decision sure to escalate the nasty trade war between the United States an...

Posted: Dec 10, 2018 3:52 PM

A Chinese court has banned the sale and import of most iPhone models in a stunning decision sure to escalate the nasty trade war between the United States and China.

The ban does not cover the new iPhone XS, iPhone XS Plus or iPhone XR, which were not yet available when Qualcomm filed its lawsuit. The phones covered by the ban make up about 10% to 15% of current iPhone sales in China, according to Daniel Ives, analyst at Wedbush Securities.

The court granted a pair of preliminary injunctions requested by Qualcomm, an American microchip maker. Qualcomm claims that Apple violates two of its patents in the iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus and iPhone X. The patents allow people to edit and resize photos on a phone and to manage apps by using a touchscreen, according to Qualcomm.

The practical effect of the injunction is not yet clear. The ruling was announced publicly Monday but put into effect last week, but Apple said in a statement that all iPhone models remain available in China.

"If Apple is violating the orders, Qualcomm will seek enforcement of the orders through enforcement tribunals that are part of the Chinese court system," Don Rosenberg, general counsel for Qualcomm, said in a statement.

Apple accused Qualcomm of playing dirty tricks, including asserting a patent that had already been invalidated by international courts, and other patents that it had never before used. Apple said it will pursue a legal response in court.

"Qualcomm's effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world," Apple said.

Apple on Monday filed a request for the court to reconsider its decision. Qualcomm applauded the ruling, saying Apple owes it money for using its technology.

"We deeply value our relationships with customers, rarely resorting to the courts for assistance, but we also have an abiding belief in the need to protect intellectual property rights," Don Rosenberg, general counsel for Qualcomm, said in a statement. "Apple continues to benefit from our intellectual property while refusing to compensate us."

Investors were mostly unmoved. Apple's (AAPL) stock closed up nearly 1% Monday. Qualcomm's (QCOM) stock rose 2%.

Shock ruling adds to threat of trade war escalation

The ruling was a surprise. Product injunctions are rarely granted, and China was widely expected to reject Qualcomm's request for a ban.

Although it's impossible to know whether politics played a part in the decision, China and the United States are embroiled in a tit-for-tat trade war that threatens to boil over.

Days after President Donald Trump and President Xi Jinping agreed on a 90-day trade truce, Canada announced that it is holding for extradition to the US the chief financial officer of Huawei, China's biggest telecommunications company. A bail hearing for the Huawei CFO, Meng Wanzhou, continues Monday.

If the countries can't come to terms on a lasting agreement by the end of the 90-day window, Trump has threatened to impose tariffs on essentially all Chinese exports to the United States that are not already subject to import taxes.

Global battle between tech giants

Apple and Qualcomm are suing one another in courts across the world. Billions of dollars are at stake, and each side has claimed some victories.

In 2017, Apple sued Qualcomm for $1 billion after the chipmaker stopped paying for the exclusive right to put its chips in iPhones. Qualcomm withheld its payments after the European Union began investigating them. The EU ultimately deemed the payments illegal, and In January 2018, the European Commission ordered Qualcomm to pay a $1.2 billion fine over the issue.

Apple and Qualcomm are also suing one another in several separate patent disputes. Qualcomm has asked a US federal judge to ban the sale of iPhones in one case. In June, a judge in the International Trade Commission found that Apple had violated one of Qualcomm's patents related to battery-saving technology.

In July, Qualcomm said Apple would no longer include its modems in iPhones. Qualcomm cut its profit forecast after the announcement.

Huntsville
Clear
54° wxIcon
Hi: 74° Lo: 55°
Feels Like: 54°
Florence
Overcast
63° wxIcon
Hi: 74° Lo: 59°
Feels Like: 63°
Fayetteville
Clear
55° wxIcon
Hi: 76° Lo: 54°
Feels Like: 55°
Decatur
Clear
53° wxIcon
Hi: 75° Lo: 53°
Feels Like: 53°
Scottsboro
Few Clouds
57° wxIcon
Hi: 73° Lo: 55°
Feels Like: 57°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 131988

Reported Deaths: 2304
CountyConfirmedDeaths
Jefferson19123337
Mobile13122290
Montgomery8688173
Madison763075
Tuscaloosa7323114
Lee575159
Shelby571950
Baldwin508749
Marshall387943
Calhoun337439
Etowah336547
Morgan321426
Houston272722
Elmore255847
DeKalb237119
St. Clair224335
Walker224380
Talladega207726
Limestone200119
Cullman186218
Dallas174926
Franklin174528
Russell17312
Autauga169124
Lauderdale165333
Colbert160926
Escambia156425
Blount156014
Jackson151611
Chilton150227
Dale133343
Covington131127
Coffee12838
Pike11619
Tallapoosa113683
Chambers113242
Clarke105517
Marion94828
Butler91138
Barbour8387
Winston71612
Marengo70119
Lowndes64927
Pickens63814
Bibb63610
Randolph62212
Hale61528
Lawrence59220
Bullock59114
Geneva5814
Monroe5768
Cherokee56916
Clay5527
Washington54913
Perry5386
Wilcox53111
Conecuh52411
Crenshaw52331
Macon47820
Henry4754
Fayette4269
Sumter41819
Lamar3532
Choctaw34512
Cleburne3326
Greene30015
Coosa1653
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 184409

Reported Deaths: 2233
CountyConfirmedDeaths
Shelby30155447
Davidson26017293
Hamilton914489
Rutherford903187
Knox899872
Williamson508936
Sumner470593
Wilson337343
Putnam307037
Out of TN301324
Montgomery296243
Unassigned28916
Bradley285816
Madison270156
Sevier251813
Blount244023
Maury226023
Washington217933
Robertson217233
Sullivan205431
Hamblen183825
Tipton173917
Trousdale16517
Gibson153819
Hardeman153225
Wayne14805
Bedford130916
Dyer127912
Dickson119913
Cumberland115317
Fayette114318
Anderson113311
Henderson113119
Carter112627
Weakley111819
Loudon11156
Coffee110812
Greene110737
Obion10889
McMinn106824
Jefferson106614
Macon102020
Warren10127
Monroe100116
Lawrence97011
Hardin96714
Lauderdale93615
Haywood92116
Lake9152
Franklin9137
Bledsoe8454
Roane8414
Carroll83217
McNairy81016
Cheatham79010
White7849
Rhea78111
Hawkins77016
Cocke7349
Marshall7175
Overton6805
Smith67810
Johnson6482
Henry6029
Chester5919
Lincoln5791
Giles56817
DeKalb54611
Hickman5385
Crockett51319
Marion5007
Decatur4786
Fentress4363
Claiborne4304
Campbell4193
Polk37811
Grainger3503
Union3371
Benton3329
Jackson3055
Morgan3053
Unicoi2801
Cannon2760
Grundy2495
Humphreys2323
Sequatchie2233
Meigs2213
Clay2105
Scott2002
Houston1860
Lewis1771
Stewart1752
Moore1541
Van Buren1530
Perry1460
Hancock1063
Pickett982

Community Events