San Diego, CA (PPN) – Qualcomm has plans of banning iPhone imports to the U.S. after Apple Inc. decided to stop paying the company billions of dollars for licensing fees for smartphone chips.
In the near future, Qualcomm may ask the International Trade Commission (ITC) to stop the iPhone from entering America. Apple iPhones are built in Asia.
This would block iPhone’s from the market. A legal dispute because ITC and Qualcomm started after the companies accused each other of not being truthful and attempting to create and illegal monopoly. Threats were also reportedly made.
Qualcomm is the most profitable smartchip making business but that didn’t prevent Apple from stopping payments.
“They have to do something,” said Kevin Cassidy, an analyst at Stifel Nicolaus. “The bigger risk is other companies or countries say we’re not going to pay, too. That’s the danger of letting Apple get away with this.”
Contract manufacturers in Asia build the iPhone. If approved, the ITC could block iPhones out of the U.S. market, which would result in a 40 percent decrease in Apple’s total sales.