In January of this year, the legal dispute between Apple and Qualcomm officially kicked off, mainly around the patent technology held by Qualcomm. It alleges that Qualcomm has charged an excessively high patent for the chip and refused to return the $1 billion in royalties that it promised to return. Apple believes that this method of collecting patent fees is extremely unfair, and Qualcomm uses patent influence to illegally help its chip department. Since then, the situation has escalated rapidly. Apple has filed a lawsuit against Qualcomm worldwide and officially announced in April that it refused to pay tens of billions of license fees to Qualcomm.
Apple's series of actions obviously annoyed Qualcomm. In response to Apple's tough attitude, Qualcomm has no choice but to extend its war on Apple's patent litigation to its four core foundries. On May 17, Qualcomm filed a lawsuit in the Federal District Court for the Southern District of California, alleging that four Apple businesses, including Foxconn, Pegatron, Wistron and Compal, violated the licensing agreement and other commitments with Qualcomm. Refusal to pay Qualcomm's patent fees.
It is reported that Foxcon, Pegatron, Wistron and Compal have four Apple core suppliers who have no objection to the Qualcomm inventions they are responsible for, and agree with the value of Qualcomm's patented technology. The license fee is paid in accordance with the license agreement between it and Qualcomm.
These four Apple core suppliers signed a patent license agreement with Qualcomm 20 years ago, becoming a patent licensing partner of Qualcomm, and have been performing well. Only in the near future, these four Apple core suppliers suddenly refused to pay patencies to Qualcomm for their manufactured Apple products without disputes over contractual obligations. At the same time, the four Apple core suppliers continue to pay Qualcomm's patent fees for non-Apple products they manufacture. Therefore, this situation is apparently Apple's behind the scenes ordering its foundry to stop paying franchise fees to Qualcomm, rather than the OEM's own wishes.
At the same time, according to informed sources, Qualcomm is preparing to apply to the US International Trade Commission (InternaTIonalTradeCommission) to ban the import of iPhones from other countries. The US International Trade Commission is an independent, non-partisan, quasi-judicial federal agency formerly known as the US Customs Commission, created in 1916. The agency's role is to determine whether the industry in the United States is harmed by dumping or subsidies of foreign products; to determine the impact of imports on industry sectors in the United States; and for certain unfair trade practices, such as patent, trademark or copyright infringement, Take countermeasures; conduct research on trade and tariff issues; and provide technical information and advice to the President, Congress, and other government agencies on trade and tariff issues. The US International Trade Commission will make a decision faster than the federal district court's decision.
Since Apple's star product iPhone is mainly made in Asia, the ban apparently deliberately rushed to block the US market before Apple released its heavy new iPhone this fall. If the ban is implemented, it means that the iPhone will not be able to sell in Apple's largest market. The American market currently accounts for 40% of total Apple product sales, while Apple’s sales in the Americas last year totaled $86.6 billion, and the iPhone accounted for more than 60% of Apple’s revenue.
In the long run, Apple must lower the cost of the iPhone to continue to maintain Apple's revenue and net profit growth. Previously, the profit margin of Apple's supply chain has been squeezed again and again. As the final way out, Cook will solve the gambling patent fee for the cost of reducing the cost of the iPhone, and want to solve the problem of patent fees of his suppliers. Because of this, Apple can continue to reduce the cost of the supply chain.
However, the trouble in front of the eyes really makes Apple feel embarrassed. For this fall, the iPhone8 series products can be listed as scheduled, and also painted a huge question mark. Qualcomm is very angry now, the consequences of Apple is really serious!
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