QUOTE OF THE DAY:
“The advance of technology is based on making it fit in so that you don’t really even notice it, so it’s part of everyday life.” ~ Bill Gates
QUALCOMM ENFORCES BAN ON SOME IPHONE MODELS IN GERMANY
Qualcomm is all set to ban some iPhone models following the court order in its favor.
WHY QUALCOMM IS DOING THIS?
Qualcomm filed a court case against Apple as according to the chipmaker manufacturer, the Apple devices have infringed Qualcomm patents. Following the court order in Qualcomm’s favor, this Thursday the company took actions to make sure the court order of banning some iPhone models from its stores is imposed in Germany.
Also, the chipmaker posted bonds of $1.52 billion as part of a legal claim by a German court. The court on Dec. 20 reached at a decision that Apple devices had violated Qualcomm’s patents on power-saving technology used in smartphones.
Apple previously stated that it would be discontinuing iPhone 7 and 8 models from its 15 retail stores in Germany following the court order. However, Apple has chosen not to comment on Qualcomm’s recent move of posting bonds.
APPLE VERSUS QUALCOMM?
This is not the first attempt to shun Apple’s violation act, the case filed in Germany is the third. The company has stunted that the same to impose a ban on Apple’s remunerative iPhones due to the patent violation accusations, the United States and China.
With all these things going on, it is clear that this partnership has turned sour, and the global wars between the two is the live example of the same.
As per the court order, Apple is not allowed to sell, put the product on sale, or import for sale of all violating iPhones in Germany. According to Qualcomm, the affected iPhones will be sent back to Apple from third-party resellers in Germany.
This seems to be contradictory to the previous Apple statement which informed that the banned devices will still be available with retail stores in Germany.
Supporting Apple’s statement, a German lawyer Kai Ruting said that the verdict was addressed to Apple, not the third-party distributors.
“These third parties are still free to sell the (affected) iPhones, and they sell the majority of iPhones,” Ruting said, adding, “the question of a settlement will be driven by the U.S. litigation and not the German case.”
He also added that Apple had influential reasoning for the German court’s verdict to be reversed on appeal. If it happens, then Qualcomm’s bond will be used to recompense Apple.
IF APPLE IS NOT AT FAULT, THEN WHY APPLE AGREED TO THE VERDICT?
Apple has all the reasons not to listen to the court. However, Apple has not handled the court decision after the verdict against in China in an amicable way. Despite the verdict, Apple continued to sell phones in China, saying that the company considered its phones were legal in the country. Also, Apple has released software updates to address the issues to match compliance with Chinese courts.
Qualcomm stated that those software updates were inadequate and insisted that Apple must stop selling the phones. Apple has appealed to review the verdict, but no outcome has come so far.
APPLE IS NOT DOING WELL AS PER REVENUE PROJECTIONS
Apple seems to be having a hard time keeping up as per revenue projection.
Apple Inc. shares dived 10% on Thursday. The stock opened at USD 144 but the when stock trading froze, it announced that there is a reduction of approx. $9 billion. The previous day a drop of $14 was recorded.
Apple stock is at its lowest in about a year and a half. Due to the staggering growth, the company is now ranked fourth in the list of the most valuable company after Microsoft, Amazon and Google.
The Cupertino, tech giant’s market value is approximately $57 billion less than before CEO Tim Cook’s letter to investors the previous day.
WHAT IS THE REASON?
As per Tim Cook’s letter, the reason behind the downfall is not one. There are various factors in play, such as trade wars with China, fewer than expected iPhone sales, and iPhone battery replacement program.
This has not only affected Apple but the suppliers as well, just like a ripple effect. One of the companies AMS, the Austrian company which manufactures the iPhone X’s facial recognition sensors have lost approx. 20% of its market share.
Last year, Apple was the first company which became a trillion-dollar company, but now it is experiencing a continuous downfall in the market cut. As per the estimation, Apple has lost $450 billion approx. since becoming $1.1 trillion company.
Apple has to stop and think what it has done wrong or how to work to improve market shares to avert the dominos falling!