Apple Warns of Serious Consequences if iPhones Get Banned

Apple has a simple solution for the potential iPhone sales ban in China

On Monday, a statement from Qualcomm said the Fuzhou Intermediate People's Court had granted the U.S. chip maker's request for two preliminary injunctions against four subsidiaries of Apple, ordering them to immediately stop selling models from the iPhone 6S to iPhone X in China.

Qualcomm was quick to declare victory in the aftermath of the ruling, though Apple countered with some cold water.

In a statement to Reuters, Apple said, "to address any possible concern about our compliance with the order", they will provide an update to all the infringed devices.

The ongoing dispute between Apple and Qualcomm has lead the Chinese court to ban sales of older iPhones - from iPhone 6s - iPhone X, a couple of days ago. Apple has argued that its former supplier unfairly leverages its position as the biggest supplier of chips for smartphones to force payment of the fees. On Thursday, Qualcomm confirmed that it has called on the court to enforce the rulings.

Should the Chinese courts deem the software update to not be enough to avoid the ban, Apple concedes it would have no other option but to settle with Qualcomm.

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The company has also mentioned that the new 2018 iPhone models were launched in the month of September this year and they were not part of the case. As a result, Kuo anticipates that Apple during the first quarter of 2019 will sell anywhere from 38 to 42 million iPhones, a steep decline from his initial projection of 47-52 million units. In fact, as Financial Times reported, Qualcomm's continued attempts might even push Apple to open the table for a settlement.

Well, whatever the thing is, the new order from the court has the potential to disrupt Apple's business in China.

Qualcomm, a leading chip making company on Thursday has urged the Chinese courts to impose a ban on the sales of Apple's new 2018 iPhones models.

In addition to the Chinese case, it's filed complaints against Apple in Munich and Mannheim, Germany, and lodged another one with the U.S. International Trade Commission in Washington.

"Apple and many other companies, consumers, and government will suffer truly irreparable harm", the company said in the filing.

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