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The growing tension between Qualcomm and Apple is starting to have some real ramifications, with the chip maker actually considering the nuclear option if its former/current partner doesn’t back down. This would involve banning the import of iPhones into the US, which would put the launch of the upcoming iPhone 8 in jeopardy.
Now, product import bans and Apple aren’t exactly strangers to each other as the iPhone maker made the same moves against Samsung and HTC a few years ago. This time, Qualcomm is the one threatening the American firm after Apple decided that it would no longer pay billions of dollars in dues, Bloomberg reports.
The chip maker is threatening to have the International Trade Commission move against Apple by stopping its iPhones from entering the US after being shipped from Asia. This is particularly problematic for the Cupertino tech giant since, even if the ban ultimately fails, it could lead to a delay of the launch of its iPhone 8. In the tech industry, products have been killed for less.
Now, the question that people might be asking is whether or not the ITC can actually do this. In short, yes, yes it can. However, nothing is ever that simple.
As a quasi-judicial arm that is based in Washington, the ITC certainly has the power to block Apple from bringing and selling the iPhone 8 in the country. In order to make the commission act on its request, however, Qualcomm would need to build a convincing case against Apple.
Much of its chances of actually strong-arming Apple in this matter relates to the patents that are in Qualcomm’s possession. These include the processor chips that it makes for the iPhones and the wireless technology patents that the chip maker also has.
The basic gist of the fight is really a matter of the two companies refusing to budge on their respective stances, TechCrunch reports. Apple wants to pay less in royalties but Qualcomm will not yield on this point. This is now a high-stakes game that has the potential to ruin one company or the other.
