China's iPhone Ban Doesn't Include Apple Supplier Pegatron, Court Papers Reveal
Yicai Global|Xu Wei
/SOURCE : yicai
China's iPhone Ban Doesn't Include Apple Supplier Pegatron, Court Papers Reveal

(Yicai Global) Dec. 11 -- China's ban on some iPhone handset sales following a legal battle between Apple and chipmaker Qualcomm does not apply to products made at contract manufacturer Pegatron, according to a court document obtained by Yicai Global.

Qualcomm stipulated that the ruling does not apply to smartphones the Taiwan-based iPhone assembler supplied to Apple, the document from Fuzhou Intermediate People's Court shows. Its products are exempt from the ban.

San Diego-based Qualcomm may have reached an agreement with Pegatron, a lawyer said.

On Nov. 30, the court, located in the country's eastern Fujian province, passed two temporary national bans on sales of certain iPhone models following a patent infringement case from Qualcomm. Handsets affected include the iPhone X, iPhone 8, iPhone 8 Plus, iPhone 7, iPhone 7 Plus, iPhone 6S and iPhone 6S Plus.

The ruling has immediate effect. If the two parties refuse to accept the outcome of the case, the court will reconsider it within 10 days, though the ruling remains in place during that period.

Attempts to ban Apple products are acts of despair on Qualcomm's part, the Cupertino-based smartphone maker told Yicai Global, adding that Chinese consumers can still buy all iPhone models and that it is appealing the decision.

Shares of Pegatron [TPE:4938] gained 1 percent today to close at TWD50.30 (USD1.63) each.

The court's decision applies to phones made under four branches of Apple units located in Fuzhou, namely, Apple Computer Trading Shanghai, Apple Trading Shanghai, Apple Electronics Product Trading Beijing and Apple Electronics Trading Beijing.

Qualcomm believes Apple has violated two patents that allow users to resize photos and manage apps via touch screen, though the suit does not cover the latest iPhone handsets, the XS, XS Max and XR, which were released after the case was filed. The firm filed suit on Nov. 15 last year and applied to the Fuzhou Intermediate People's Court on July 10 this year.

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