Early this year, there were reports that Apple has filed a lawsuit against Qualcomm over some alleged royalty disputes. The US courts ended up going in favor of Apple thereby allowing the company to withhold almost $1 billion in royalties to Qualcomm. Of course, the latter did not take this lightly and filed a counter lawsuit against Apple. Now, Qualcomm is asking the US trade agency to ban iPhone imports to the country.
According to a report by Bloomberg, Qualcomm has sought out the help of the International Trade Commission in DC to stop Apple from importing iPhones to the country. This is in line with the patent agreements the company has with Apple regarding some wireless chips.
In the said dispute, Qualcomm argues that it has the right to ask for royalties for technologies it helped develop even though Apple is not using the actual hardware from Qualcomm. Obviously, Apple CEO Tim Cook, deemed this practice unfair hence the decision to withhold the said royalties.
This new move from Qualcomm can pose a great risk to Apple. This is mainly because, according to Bloomberg, the US alone holds around 40 percent of Apple’s revenue. Not being able to sell its products stateside will surely dent its income in the future.
On the other hand, the request is still pending investigation. According to the same report, it could take more than a year before a decision could be reached. Nevertheless, there is a chance that both parties will reach an agreement even before everything escalates further.
Furthermore, the ban may also affect future iPhones in the US if the committee decides in favor of Qualcomm. This is especially important since Apple is banking on the release of its newest line of smartphones later this year. Also, the Cupertino giant is putting a lot of effort in bringing the iPhone 8 to the market. For more tech updates, be sure to check us out at TheBitbag.