May 09, 2017 05:05 PM EDT
Apple and Qualcomm continue to go at it, largely in part due to the former stopping payment on royalties because rates were unfair. In what could be a way to get back, Qualcomm has approached the International Trade Commission to ban imports of Apple products to the United States.
Qualcomm, being a globally popular chipset-maker, may have a case thought the best-case scenario would be a partial ban. A lot of it will boil down to the issue of what is inside the iPhone or iPads, parts which range from the actual processor to wireless chips, according to Bloomberg.
If Qualcomm gets a partial ban, such would be a big blow to the earnings of Apple. Roughly hundreds of millions of dollars per earnings per quarter are at stake, something that the Cupertino company doesn’t really need right now.
The whole conflict between Apple and Qualcomm started when the former claimed they were paying too many royalties that it should, Tech Crunch reported. Qualcomm is reportedly asking Apple to license too many patents but the Cupertino company is only willing to shell out $1 billion.
Patent licensing has been a problem for Apple ever since and straining its relationship with Qualcomm could be a big blow. Qualcomm does own perhaps the heart and soul of the Apple products and their inability to repair the business relationship may force them to look at alternative suppliers.
Compared to other parts such as the OLED display for the upcoming iPhone 8, finding an alternative chipset manufacturer may not be as easy. Qualcomm is a key chipset manufacturer for most smartphones in the market, including Apple rival brand Samsung.
The legal battle between Apple and Qualcomm are seen nothing more than a nudge by each to gain the advantage. No one seems to be flinching as of this writing so it will be interesting how this request to ban Apple products in the US market will pan out.
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