Published in Mobiles

Qualcomm seeks to ban the iPhone

by on04 May 2017

Saving the world from Tyranny

Chipmaker Qualcomm is taking steps to save the world from Apple’s technology tyranny by banning the iPhone in the US.

Apple has hacked off Qualcomm by deciding that it should accept whatever price it wants to pay for the use of its chips. It is sitting on piles of cash that it owes Qualcomm until the outfit agrees to its terms.

While the Tame Apple Press is baying for Qualcomm’s blood, it is important to realise that Apple’s case is rather weak. It is a bit like a tenant saying withholding their rent because they think it is too high while staying in the building. Qualcomm, as the landlord, just has to evict them and that is exactly what it is doing.

Qualcomm is asking the International Trade Commission to ban the imports of iPhones into the United States, which is Apple’s biggest market. A successful appeal to the ITC could potentially lock it out of the US market, which accounts for 40 percent of Apple’s total sales. Apple generated $86.6 billion in its Americas’ region last year.

Apple has only itself to blame. It makes its products in Asia, so it is vulnerable particularly as it needs to get its new model into the country so that it can pretend it is still on track.

Apple Supreme Dalek Tim Cook has said that Qualcomm has refused to “offer fair terms” as required under rules governing the licensing of patents. Fair terms is apparently whatever Apple defines as fair.

The Tame Apple Press is insisting that Qualcomm has to back down or it will stop the “much anticipated” iPhone being released in September. One article insists that it is already losing the battle against Apple.

“Qualcomm has already shown the price of its fall out with Apple. It cut its revenue outlook this quarter by $500 million citing the likelihood of not receiving licensing fees from Apple. If that carries on for the rest of the year, almost one-third of its lucrative licensing revenue, most of which is profit, will disappear,” thundered one.

It points out that Qualcomm is already in trouble because Apple is using Intel modems, failing to point out that Intel modems are the comedy option.

The ITC has the advantage of speed, judges with experience in patent law and the ability to get an import ban. What should worry Apple is that it might test courts in the UK, Germany and China.

All of them are faster than US courts and there is case law and government agreements on Qualcomm’s side.

Personally we hope that Qualcomm does not settle. If it wins it will force Apple to reverse its policy of strong-arming suppliers into increasing its profit margins. If there is an iPhone ban anywhere in the world, it will mean that the world’s standards will get a much needed boost

Last modified on 04 May 2017
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