Passing Qualcomm or complaining to the US ITC about Apple's iPhone or banned the US market
Electronic enthusiasts eight o'clock: According to foreign reports, sources revealed on Wednesday that after Apple announced last week that it would suspend Qualcomm's first quarter of this year's smartphone patent royalties, Qualcomm plans to lodge complaints with the US International Trade Commission (ITC). The agency is required to issue an import ban on the iPhone.
The news said that because Apple's iPhone is made in Asia, Qualcomm asked the US International Trade Commission to issue an import ban, which means that the company will prevent Apple's iconic product, the iPhone, from entering the US market.
The US International Trade Commission is an independent, non-partisan, quasi-judicial federal agency formerly known as the US Customs Commission, created in 1916. The agency's role is to determine whether the industry in the United States is harmed by dumping or subsidies of foreign products; to determine the impact of imports on industry sectors in the United States; and for certain unfair trade practices, such as patent, trademark or copyright infringement, Take countermeasures; conduct research on trade and tariff issues; and provide technical information and advice to the President, Congress, and other government agencies on trade and tariff issues. The US International Trade Commission will make a decision faster than the federal district court's decision.
The legal dispute between Apple and Qualcomm mainly revolves around the patented technology held by Qualcomm. These patents held by Qualcomm allow it to charge 1% of the price of each smartphone as a royalty, regardless of whether the product is tested with Qualcomm chips. Apple has previously complained that this approach is extremely unfair, and Qualcomm uses patent influence to illegally help its chip division.
Qualcomm is a major supplier of Apple and Samsung's modem modems. In the most recent fiscal year, revenue from Apple and Samsung accounted for 40% of Qualcomm's total revenue. Apple filed a lawsuit against Qualcomm in January, accusing Qualcomm of charging too high a patent for the chip and refusing to return the $1 billion in royalties that it promised to return. Qualcomm said on Friday that it had received a notice from Apple that it would suspend Qualcomm's iPhone patent fees for the first quarter of this year. Affected by this, Qualcomm was forced to cut the profit and revenue expectations for the quarter.
“Qualcomm must respond,†said Kevin Cassidy, an analyst at investment firm STIfel Nicolaus. "For Qualcomm, the greater risk of this case is that other companies and countries may follow Apple's example and stop paying franchise fees to Qualcomm." As of now, Qualcomm and Apple spokespersons have not commented on this report.
In response to Qualcomm's possible termination of the sale of modem chips to Apple, or the quest to impose a lock-up order on the iPhone in specific markets around the world, Apple CEO Tim Cook said in a earnings call on Tuesday. According to the so-called FRAND clause, it is the responsibility of any standard basic patent owner to provide it to all businesses. FRAND stands for fair, reasonable and non-discriminatory terms. Qualcomm does not treat Apple under the FRAND terms. I think there are many around this theme. Legal case, we will wait and see."
The iPhone is produced in Asia by a foundry manufacturer. If the US International Trade Commission issues an import ban on the iPhone, it means that the iPhone will not be able to sell in Apple's largest market. The American market currently accounts for 40% of total Apple product sales. Apple’s sales in the Americas last year totaled $86.6 billion, and the iPhone accounted for more than 60% of Apple’s revenue.
Qualcomm said in a statement last week: "Apple unilaterally announced that the terms of the contract are unacceptable. However, it is these same terms, Apple has been performing for 10 years." The company was forced to lower its performance expectations. Qualcomm now expects revenues in the third quarter (as of the end of June) to reach $4.8 billion to $5.6 billion, down from the previous forecast of $5.3 billion to $6.1 billion. If this situation continues until the end of the year, this means that nearly one-third of Qualcomm's patent revenue will disappear, and that these revenues are almost entirely profitable.
Apple's latest version of the iPhone uses Intel and Qualcomm's modem chips. Prior to the iPhone 7, Qualcomm had been the exclusive supplier of Apple's modem chips.
Matt Larson, Bloomberg intelligence analyst, believes that Qualcomm may also sue Apple in the UK, Germany and China because courts in these countries are faster than US courts.
Judging from the current situation, Qualcomm and Apple have no possibility of reconciliation. Cook said in a conference call on Tuesday that "about Apple's cessation of paying contending patent royalties to Qualcomm is because the two parties cannot make payments when there is a disagreement over the royalties. I don't know how much the royalties should be paid. Qualcomm believes that we should pay a certain amount of patent fees, but we believe that we should pay another amount of patent fees. We have differences in patent fees. Unless the two companies reach a consensus on patent royalties, they can only Relying on legal means to resolve disputes. We stopped paying patent fees to Qualcomm because the latter wanted to charge Apple 1% of the total value of the iPhone as a patent fee. Although Qualcomm made great achievements in developing standard basic patents, the iPhone only used it. There are very few Qualcomm patents. Qualcomm's patents have nothing to do with the display, Touch ID, and Apple's innovation. Therefore, we believe that Qualcomm's charging standards are not reasonable. We firmly believe that our position on this issue is correct, I They also think that they think they are correct. In this case, they can only resort to legal means to solve Determine the differences between the two sides."
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