Apple Challenges China Sales Ban in Court
Liao Shumin
DATE:  Jan 08 2019
/ SOURCE:  yicai
Apple Challenges China Sales Ban in Court Apple Challenges China Sales Ban in Court

(Yicai Global) Jan. 7 -- American smartphone giant Apple has submitted evidence to a court in Fujian province in a bid to end the temporary ban preventing it from selling many of its handsets in China.

Qualcomm's desperate attempt to maintain its monopoly by banning sales of Apple products and forcing the company to reach a settlement is harming Chinese consumers and businesses, state-backed China News Service cited Noreen Krall, Apple's chief litigator, as saying. She did not disclose details of the submission.

Fuzhou Intermediate People's Court in December temporarily banned the Californian phonemaker from selling seven iPhone models, including the X, on the Chinese mainland as part of chipmaker Qualcomm's lawsuit against the tech manufacturer, which charged Apple with using patented technology without authorization.

Consumers can still legally buy all iPhone models, Apple claimed in response to the ban while continuing to sell. The firm then updated the software on the phones, which it believed resolved any compliance issues as the new operating system did not use any Qualcomm technology.

Now is a testing time for Apple, whose Chief Executive Tim Cook lowered the firm's first-quarter revenue projections in a letter to investors. He reduced the forecast to USD84 billion, down from an earlier estimate of between USD89 billion and USD93 billion, and sent the firm's share price [NASDAQ:AAPL] spiraling more than 8 percent to USD144. It has since rebounded to more than USD148, still down 5.6 percent from before the letter.

Cook cited China's slowing economic growth as one of the reasons behind the adjustment, but the temporary injunction in China and a permanent sales ban in Germany are also likely major factors. 

Munich District Court ruled on Dec. 20 that Apple infringed on Qualcomm's intellectual property, and issued a permanent embargo on the sales of several iPhone models. Apple has mostly complied with the ban, but re-sellers are still offering the handsets, despite orders for the manufacturer to stop third parties selling the products.

Editor: James Boynton

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Keywords:   Apple, Qualcomm,iPhone,Lawsuit