26 Dec

Qualcomm Secures Ban on Apple’s iPhones in Germany

WRITTEN BY Paige Tanner FEATURED IN Company News, Insights, & Analysis and Tech & Comm Services

Qualcomm-Apple legal battle takes a new turn

Qualcomm (QCOM) has been in a legal battle with Apple (AAPL) for two years. The lawsuit started as a licensing dispute and took the shape of patent infringement. Qualcomm has been seeking a ban on some of Apple’s iPhones in the United States, China, and Germany (EWG) due to patent infringement and secured a ban in two countries. The United States court is due to give its ruling on the patent infringement case in 2019. Let’s look at the German court’s ruling.

 Qualcomm Secures Ban on Apple’s iPhones in Germany

German court rules in Qualcomm’s favor

On December 20, the Munich Regional Court ruled that Apple supplier Qorvo (QRVO) infringed on Qualcomm’s patent related to hardware that helps iPhones save battery power while sending and receiving wireless signals. Qorvo’s chief intellectual property counsel, Mike Baker, denies violating the US version of Qualcomm’s patent and claims that the German court did not allow his company to testify.

Qualcomm secures iPhone ban in Germany

The German court banned sales of Apple’s iPhone 7, 8, and X in Germany. Apple’s iPhone 7, 8, and X will be available at phone carriers and resellers in 4,300 locations, but not at Apple’s own 15 stores.

To bring the ban into effect, Qualcomm would have to post a bond worth $765 million to cover losses Apple may face from the ban if the court ruling is reversed. Apple asked for a bond of $1.6 billion, but the German court slashed the amount, as the ban doesn’t cover its latest iPhone models.

The court also granted Qualcomm’s request to recall devices that use is patent from German retailers and destroy them. According to some legal experts, Qualcomm could also seek to extend the ban to iPhone resellers. This court ruling sent Apple and Qorvo stock down 3.9% and 3.5%, respectively.

The above ban would have little impact on Apple’s earnings, as Germany is a small market for the iPhone maker, and older models together account for probably half of iPhone sales. Apple faces a bigger blow from a similar ruling in China. We will look into this next.

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!

Latest articles

With AES stock trading close to a decade high, investors must be wondering if the stock has any steam left. In this series, we'll look at its earnings growth, valuation, and outlook.

In another setback for Boeing (BA), China might not buy the company's 737 MAX jets as part of its trade negotiations with the US.

19 Mar

Micron Stock's Ups and Downs

WRITTEN BY Paige Tanner

Micron was the hardest hit by the semiconductor downturn due to weak economic demand arising from the US-China trade war.

19 Mar

What to Expect from CannTrust's Q4 Earnings


CannTrust (CTST) announced that it's scheduled to report its fourth-quarter earnings on March 28 before the market opens.

Yesterday, Apple (AAPL) launched a newly upgraded range of its iPad Air and iPad mini devices ahead of its March 25 special event.

19 Mar

Nike Gears Up to Deliver Its Q3 2019 Results

WRITTEN BY Sharon Bailey

Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 after the market closes on March 21.