In order to force Apple to return to the negotiating table, Qualcomm submitted an application for a ban on iPhone to the domestic court. Subsequently, the Fuzhou Intermediate People’s Court issued a court order prohibiting the sale of iPhone products including the iPhone X launched in 2017.
For this sudden ban on sales, Apple responded quickly, and the infringing iPhone upgraded iOS 12 did not exist infringement. At the same time, they also stressed that domestic users can purchase all iPhones normally, that is, iPhone 6S, 7 & 8.
According to documents reviewed by the Nikkei Asian Review, the iPhone produced by Heshuo is not applicable to the ban, while the iPhones produced by Foxconn and Wistron are within the scope of the ban. The report said that Heshuo had an exemption, which was due to the fact that Heshuo paid a patent fee for the software when Apple and Qualcomm disputed, and neither Foxconn nor Wistron paid the patent fee.
In view of this, Apple is said to have negotiated with Taiwan’s Heshuo whether it can take on more production orders to solve the problems caused by the ban. Although the parties have not yet reached any decision, this change may only apply to sales in China without affecting global suppliers.
Every iPhone assembler and Qualcomm negotiated different content. “One person familiar with the matter said, “He has paid more patents at Qualcomm than Foxconn and Wistron. This is why it can be exempted from the ban. Qualcomm also expressed its affirmation that Heshuo exempted the ban, saying that “Heshuo has two patents.”
China is a very valuable market for Apple. In the 2018 iPhone sales, the Chinese market accounts for about 20%. People familiar with the matter said that 6% of iPhone revenue comes from the sales of previous products in the Chinese market, which is the type of iPhone products that are restricted by the ban.