Qualcomm & Apple patent war or have a sequel, iPhone8 release time is doubtful

Qualcomm Xiaolong 835, full screen, 6G big memory... Recently, Samsung Galaxy S8, Xiaomi 6, HTCU11 and other mainstream flagship mobile phones have been put into the market, powerful hardware configuration and stylish and beautiful appearance, successfully pulling a large number of users To the Android camp. Under such circumstances, Apple obviously needs a flagship new product to boost the market's confidence in the Apple camp. According to the current public information, the new generation of Apple iPhone 8 will be fully screened for the first time, and may be released in September.

However, Qualcomm recently sued four Apple foundries in the United States, including Foxconn (Hon Hai) Group, Pegatron, Wistron and Compal, claiming that they violated their licensing agreements and other commitments with Qualcomm and refused to use them. Qualcomm pays for its licensed technology, which also means that the patent battle between Qualcomm and Apple has begun to escalate. Moreover, this patent war may have follow-up actions: If Qualcomm applies to the US International Trade Commission (ITC) for a ban on Apple products, then the release time of the iPhone 8 is likely to be postponed again.

Qualcomm & Apple patent war or have a sequel, iPhone8 release time is doubtful

The stalemate between Apple and other vendors usually doesn't last long, because the contract with the iPhone is usually the lifeblood of a small supplier, and losing the cooperation will cause most companies to lose business. However, Qualcomm, as the maker of Android mobile phone processor, is qualified to compete with Apple. The two companies are currently seeking patent licenses: Qualcomm hopes Apple will pay for the iPhone patent. Apple said the request was unreasonable and had instructed its foundry (such as Foxconn) not to pay royalties to Qualcomm for the time being.

Qualcomm has sued Apple's four largest manufacturing partners for not paying royalties. This move has caused a serious escalation of the relationship between the two companies, which will cause market disruption regardless of the outcome. Currently, Qualcomm is suing Apple for breach of contract in the Southern District of California. If it doesn't go well, Qualcomm has a killer: the US International Trade Commission (ITC). Qualcomm can file a case with the committee to block the sale of infringing devices in the United States, which may prevent current or future iPhone sales in the United States.

BMOCapital's Timm (TImLong) proposed the possibility of the action. It remains to be seen whether Qualcomm will seek a ban through the US International Trade Commission. Qualcomm did not imply that it would do so, but it was definitely a possibility and the bet was high enough. Apple may choose to solve the problem instead of delaying the launch of the iPhone 8. If the iPhone 8 is postponed due to the import ban, Apple's share price may face a huge blow, no matter how short the delay.

Rumor has it that the iPhone 8 will be available from September 2017 to March 2018. Apple stocks thrived before the release of the iPhone 8, which is expected to trigger a "super cycle" of upgrades. The iPhone's high profit is at the heart of Apple's annual crazy profits, so it struggles to avoid any reduction in profits. But at the same time, the company is at a critical juncture, and Apple has not released new products since the launch of AppleWatch. Forced to choose lower profits or delay the release of the iPhone8, Apple executives will face more difficult situations than in the past decade.

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