Qualcomm

Qualcomm wins preliminary order from Chinese court banning imports and sales of several Apple iPhones

Qualcomm has won a preliminary order from a Chinese court banning imports and sales of several Apple iPhones in the region.

The Fuzhou Intermediate People’s Court order affects the iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus and iPhone X, which the court found violated two of Qualcomm’s software-related patents for photograph resizing and touch screen application management.

Apple could update the software to remove the infringing features and continue selling the phones.

“We deeply value our relationships with customers, rarely resorting to the courts for assistance, but we also have an abiding belief in the need to protect intellectual property rights,” said Don Rosenberg, executive vice president and general counsel, Qualcomm Incorporated.

“Apple continues to benefit from our intellectual property while refusing to compensate us. These Court orders are further confirmation of the strength of Qualcomm’s vast patent portfolio.”

The patents enable consumers to adjust and reformat the size and appearance of photographs, and to manage applications using a touch screen when viewing, navigating and dismissing applications on their phones.

Additional actions seeking similar relief for Apple’s infringement of other Qualcomm patents are pending in China and other jurisdictions around the world.

Earlier this year, the same court banned the import of some Micron chips.

Citi’s cut it’s Apple target this morning, citing Apple’s exposure to China, which accounts for about 18% of total sales.

The firm doesn’t expect China to ban or impose additional tariffs on the iPhone maker but notes that if it did happen Apple’s Chinese exposure represents about 18% of total sales.

Citi doesn’t expect Apple to miss its soft guidance for the December quarter but sees the company reporting towards the lower end of its $89B in sales.

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