Apple and Qualcomm Saga: Apple Will Not Be Able To Import iPhones Anymore

by Mudit / May 04, 2017 09:10 AM EDT

Qualcomm planning to initiate ban on import of iPhones from Asia

May 3^rd, 2017: There is a battle being fought between the two very prominent tech giants of the world, Qualcomm and Apple. The two companies have been fighting over the dispute of patents and it seems like Qualcomm might just be ready to take a rather drastic step.

According to this report published by Bloomberg, the San Diego-based California Chipmaker is basically preparing to force the International Trade Commission or the ITC, to stop the import of iPhones into the United States of America. The company wants to put a stop to the supply of iPhones from China and other Asian Countries. Apple uses its manufacturing plants in Asia to manufacture phones at a much lower price than the current market rate.

Apple's decision to refrain from paying any license fees to Qualcomm until the patent dispute is settled is what might have caused this drastic action from Qualcomm's side.

If the Qualcomm decides to back up this decision of stopping the import of Apple iPhones, the company might end up losing a major share of their business as most of the chips that are used in iPhones have been manufactured by Qualcomm.

Qualcomm also supplied modems to almost every model among the iPhones. Only the iPhone 7 has a few models that have been manufactured by Intel, which could result in favor of Intel. This recent feud of Apple with Qualcomm could end up being profitable for Intel all the while.

If Qualcomm is able to enforce the ban on Apple, the effect on the company could be devastating. The US market accounts for up to 40% sales of the iPhone each year, if Apple is unable to import iPhones then it would end up losing a lot of its market share.

This ban on Apple iPhones is still a long shot because Qualcomm is under investigation by many governments like the U.S, EU, and even the South Korean government. The company is under scrutiny because of their method of licensing technology.

It remains a matter of time to see whether Apple and Qualcomm are able to reach a middle ground or not.