iPhone unit sales have suffered a hit in the second quarter of 2017, and consumers are eagerly on the lookout to determine which iPhone 8 rumors are true. As of now, Apple’s feud with Qualcomm seems to be taking a turn for the worst, as the latter is supposedly attempting to ban the import of iPhones to the US.
The intrigue between Qualcomm and Apple certainly is not promising as of current, and the situation is expected to worsen in the coming days. The issue began in January when Apple sued Qualcomm with the allegations that it was being changed outrageous fees to license its cellular technology for its iPhones.
Earlier on in April, Qualcomm sought retribution by filing a countersuit against Apple upon the declaration that Apple’s legal claim is merely a method to decrease its licensing fees and that Apple should not diminish Qualcomm’s role in its domination of the popular global mobile tech market.
Most recently, a disclosed source has reported that Qualcomm could be gearing up to request the International Trade Commission to ban the importation of Apple’s iPhones in the US. This could signify a grave attack on Apple’s business and revenue.
If this alleged report is accurate, then the threat is definitely a major concern for Apple. This is especially problematic as Apple is in the midst of iPhone rumor season, which is the period directly before the launch of the latest version of the iPhone, when potential customers are excitedly keeping an eye out for any new information on the latest model and, more importantly, how it will look and what new features it will have.
Presently, Apple has not yet established an official date for the release of the iPhone 8—or even a sneak peek at what it will look like, but that doesn’t stop the public from speculating.
News such as that of the threat of the ban on importation of iPhones to the US, though unlikely to disrupt the plans of a company as large and established as Apple, is not exactly welcoming. This is especially the case when the company is preparing for the release of a new line of products, which could possibly be available as soon as this fall.
This potential threat is also a problem for Apple as Apple’s iPhone unit sales for Q2 did not exactly work out as they had projected it would. Apple’s latest earnings results reported that 50.8 million iPhone units sold in Q2 did not reach the predicted sales of 52.2 million units.
That being said, these are not particularly bad sales results for a company like Apple, but the company does have the potential to perform better in terms of sales.
The ITC, which is where Qualcomm allegedly plans to request that the importation ban is enacted, has the benefit of speed in relation to processing cases more rapidly than federal courts do. As iPhones are typically built in Asia the threat or Apple could mean that it would lose forty percent of its sales which are earned through business in the US.
However, even if this report is true and Qualcomm really is attempting to enact an iPhone ban in the US, there is no guarantee that their request will be accepted. Though this does make it evident that a simple agreement between the two companies does not seem like the probable turnout, as both are steadfast in refusing to back down—on the contrary, both Apple and Qualcomm appear to be planning their next moves to intensify their grip on the feud.
Fractured Image via Wikimedia.
