Apple share price down 1% after some iPhones may be banned

The tech giant's stock falls after a US judge recommends banning the sales of some older iPhones.

Apple logo after judge bans iPhones Source: Bloomberg

Apple share price is down 1% after a patent dispute with chipmaker company Qualcomm that has led to a recommended US import ban on older iPhones. This news comes just a day after the tech giant launched several new online services.

Why would some iPhones be banned?

The dispute between Apple and Qualcomm started when Qualcomm sued Apple for patent infringement. Qualcomm claimed that Apple violated a patent related to saving power on devices. Apple denied the accusation and accused Qualcomm of refusing to sell the tech company needed parts for its iPhone XS in retaliation.

Administrative Law Judge, MaryJoan McNamara, said that Apple infringed on Qualcomm’s technology. She ruled that older models of iPhones should be banned from being imported. Though she ruled against Apple for some patent infringement, she also ruled against some of Qualcomm’s other claims of patent violation.

‘A complete recommendation on remedy and bond will be forthcoming together with findings of fact and an analysis of the effects of the public interest factors on the issue of remedy,’ said McNamara.

‘However, it should be noted that I will be recommending that a limited exclusion order together with a cease and desist order, both with certification provisions, issue against Apple,’ added McNamara.

This ruling comes months after a similar case in China led to the banning of older iPhones in the Asian nation after Qualcomm sued Apple for patent infringement.

What’s next in the Qualcomm vs. Apple battle?

Qualcomm’s lawyer, Don Rosenberg, said that the corporation was pleased with the ruling.

‘We appreciate Judge McNamara's recognition of Apple's infringement of our hardware patent and that she will be recommending an import ban and cease and desist order,’ said Rosenberg in a statement.

Apple has not responded to the decision. McNamara’s ruling is not binding and the US International Trade Commission still has to review the ruling. Qualcomm also has another pending patent lawsuit against Apple that will be decided later this week.


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