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Qualcomm suit targets Apple's entire iPhone business model

14 October 2017, 12:44 | Marlene Myers

Qualcomm suit targets Apple's entire iPhone business model

Qualcomm suit targets Apple's entire iPhone business model

The legal battle started earlier this year when Apple filed an antitrust suit against Qualcomm arguing that the chipmaker's licensing practices are unfair, and that it abused its position as the biggest supplier of chips in phones. Qualcomm alleges that Apple is infringing upon three non-standard patents, which include the technology that enables Force Touch on the iPhone 6s and later models, and certain power management aspects of the iPhone.

While a sales ban would definitely hurt Apple, a production cutoff would cripple the company's supply of smartphones globally, since most iPhones are made in China. Apple has accused Qualcomm of failing to pay it $1 billion in rebates that it says it is owed. The inventions "are a few examples of the many Qualcomm technologies that Apple uses to improve its devices and increase its profits", Trimble claims. The Cupertino company has historically used Qualcomm's modems in its phones, though it's recently switched to Intel chips for that goal.

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"Apple believes deeply in the value of innovation, and we have always been willing to pay fair and reasonable rates for patents we use. This claim is meritless and, like their other courtroom maneuvers, we believe this latest legal effort will fail". The deal now in place still requires that Apple pay a fee regardless of whether the phone includes a Qualcomm chip, though. Canaccord Genuity Analyst Mike Walkley says that there's little to no precedent for the Chinese court to take action at the request of an American company. The Greater China region accounted for 22.5 percent of Apple's $215.6 billion sales in its most recent financial year.



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