Qualcomm intends to halt Apple’s iPhone
assembly in China
It’s been a while since the world’s largest phone chip maker, Qualcomm. And the epitome of innovation in smartphones, Apple (at least that’s what I like to think). Have been in a dispute over who’s being unfair to whom. In the most recent installment to that, Qualcomm filed a lawsuit against the multi-billion dollar company in the court of China. If successful can greatly affect the delivery of latest iPhones.
What Qualcomm mad about?
Qualcomm has reportedly said in its lawsuit. That Apple is using three innovations that Qualcomm has generated without paying for them. Including the force touch feature, which is being in most of the iPhones currently circulating in the market. Including the latest installment from Apple iPhone 8 and X.
Though Qualcomm adds a significant number to their revenues by selling their chips. But the most profitable source for them is to take fees from smartphone makers who use their processors. Apple said in one of its statements that they are sick of paying fees. For every phone even if it doesn’t contain the Qualcomm chip. Acting on this, Apple has switched to Intel for support in some of its markets. But the company which sets the new standards for smartphone performance. And phones are compared on basis of which Snapdragon it has. It is not possible to completely ignore the presence of Qualcomm. Even for a company so successful that it’s CEO donates a one hour lunch to charity annually. That gives at generates $100K.
How much damage will Apple take?
If the Chinese court ruled in favor of Qualcomm. Apple will have to halt its production in China which accounts for most the iPhone assembly. This can put Apple really behind in its schedule of delivering the new iPhone 8 and iPhone X. During the coming holiday season. The current date to pre-book iPhone X is 22nd October. So, it seems that they can’t lose the production. If they do, they will surely lose their winning streak in this quarter. They are all set to take the hyperjump from $750 bn to $1 trillion. That will be the first time for a company to go that high. Conditionally the next line of Apple product receives the same kind of reception. The iPhone sales account for the majority of Apple’s profits. According to the analysts, even if Apple loses the lawsuit they’ll resort to paying Qualcomm that sabotaging their revenues.