When China prohibited the sale of certain iPhone generations, the ban resulted in a 3% drop in the stock market. Nevertheless, Apple regained its loss a day later and increased by 0.7%. Due to patent issues, Qualcomm demanded the prohibition of sales in China.
According to Qualcomm, Apple allegedly copied two specifications unlawfully. The specs were: allowing the owners to reformat the layout of the pictures and allowing the users to go through applications while using another app. The Fuzhou Intermediate People’s Court, located in China, approved the ban. Apple complained about the limitations.
According to Apple, the ban is a result of issues with the release of iOS 11, which was made available last 2017. However, the new operating system, iOS 12, is the latest operating system update. Apple confirmed that China remains as one of its largest consumers.
Apple released a report saying that Qualcomm is participating in illegal activities, being investigated, and wanted to divert the negative attention to Apple. Since iPhones are still available in China, one of the patents being claimed is nullified. Apple also stated that the company would work legally even if it must go through court trials.
Qualcomm is still raising its concerns about the patents due to copyright violations.
Even with the injunction, Dan Ives, an analyst, confirmed that Apple is still doing well in the stocks, outselling its previous rating. The analyst emphasized that only iPhones with the iOS11 should be prohibited.
Toni Sacconaghi, also an analyst, confirmed that the ban would result in a negligible amount of earnings if Apple insisted that only those models with lower versions should be banned.