Apple Responded To The Ban On The Iphone In China: It Filed For Reconsideration With The Court On Monday

On the evening of Dec. 10, Qualcomm (NASDAQ: QCOM) announced that the Fuzhou Intermediate People's Court of China granted Qualcomm two interim injunctions in two lawsuits against four Chinese subsidiaries of Apple, demanding that it immediately stop infringing on Qualcomm's two patents, including import, sale and promised sale in China. Unauthorized products.

In response, Apple 11 said in its early morning financial response that it had applied to the court for reconsideration on Monday, the first step in appealing the preliminary injunction.

The court ruled that because Apple infringed Qualcomm's patent, it forbade Apple to import and sell several models of the iPhone to China.

Qualcomm said the bans cover products such as the iPhone 6S, the iPhone 6S Plus, the iPhone 7, the iPhone 7 Plus, the iPhone 8, the iPhone 8 Plus and the iPhone X.

Patents in this case enable consumers to adjust and reset the size and appearance of photos, and manage applications through touch screens when browsing, searching and exiting applications on mobile phones. Qualcomm said that the two patents had previously been recognized as valid by the State Intellectual Property Office of the People's Republic of China in the patent invalidation procedure.

According to insiders, the temporary injunction granted by Fuzhou Intermediate Court is effective and immediate throughout the country. This also means that, from a legal point of view, the above models of Apple mobile phones are not available for sale in China for the time being.

However, at present, on platforms such as Jingdong and Tianmao Mall, Apple phones, including the iPhone X, 8 and 8 Plus, are still on sale.

According to historical data, Apple's revenue from Greater China is very high in 2015 and 2016. The decline began in 2017, and Q1-Q3 declined by less than 20% in 2018.

Concerning the patent upgrade of Qualcomm and Apple, Fang Jing said that the patent dispute mainly focused on the old version of iOS 11 system, which had not yet affected Apple's sales. At the same time, Apple can also avoid patent infringement by updating iOS. In addition, referring to past cases, the injunction in litigation is not the final outcome of the trial, and the follow-up trial progress needs to be closely monitored.

Fang Jing said that the mainland is an important market for the iPhone, accounting for nearly 20% of global sales. At the same time, referring to the historical sales data of new and old models of the iPhone, we expect that if the ban ignores iOS upgrades and is strictly enforced, the impact on global sales of the iPhone will be 3.59% - 6.73%. The ratio is limited. Qualcomm has patent disputes with several manufacturers, and the company has made it clear that at least one mainstream Android manufacturer in China has followed Apple and stopped paying patent fees.