Qualcomm seeks to extend the iPhone sales ban in China
Qualcomm (QCOM) continues to seek punishment for Apple after convincing a Chinese court to ban the sale of certain iPhone models in the country. Earlier this month, a Chinese court issued a ruling banning the sale of the iPhone 6S, the iPhone 6S Plus, the iPhone 7, the iPhone 7 Plus, the iPhone 8, the iPhone 8 Plus, and the iPhone X in the country on the basis that they violated two Qualcomm patents.
In what could raise the stakes for Apple in the long-running dispute over patent licensing fees, Qualcomm is seeking to extend the sales ban on iPhones in China to include the latest models as well, Bloomberg has reported. The latest iPhone models are the iPhone XS and the iPhone XR, which Apple launched in September.
Apple dropped Qualcomm chips in latest iPhones
The iPhone is Apple’s main business, accounting for ~60% of its total revenue in the third quarter. Qualcomm and Apple have sued and countersued each other in many places around the world amid a disagreement over patent licensing terms. The dispute has led to Apple dropping Qualcomm as a supplier of the wireless chips it uses to make iPhones. Apple used wireless chips from Intel (INTC) exclusively in its latest iPhones.
Apple dispute crimps Qualcomm’s profits
The dispute with Apple has dealt Qualcomm a huge financial blow, especially in its technology licensing division, QTL. Revenue in this division fell 6.0% YoY (year-over-year), and its profit fell 11% YoY in the fourth quarter of fiscal 2019, which ended in September. Qualcomm’s overall revenue fell 2.0% YoY to $5.8 billion in the quarter.
Hewlett Packard Enterprise (HPE) saw its share of revenue in the market tumble 3.2% YoY in the third quarter.
Yesterday, Apple (AAPL) launched a newly upgraded range of its iPad Air and iPad mini devices ahead of its March 25 special event.
Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 after the market closes on March 21.
On March 18, Chesapeake Energy’s (CHK) implied volatility was 51.9%, which is ~14.7% less than its 15-day average.
Sprint (S) reported an adjusted EPS of $0.06 in the first nine months of fiscal 2018—compared to $0.08 during the same period in fiscal 2017.
On March 18, Brent crude oil May futures settled ~$8.2 higher than the WTI crude oil May futures. On March 11, the spread was ~$9.5.
Out of the 34 analysts covering Broadcom (AVGO), 25 analysts rated the stock a “buy,” while nine analysts rated the stock a “hold."