Monday 10 December 2018 6:06 pm

Apple banned from selling seven iPhone models in China after Qualcomm dispute

Jess Clark is a City A.M. news reporter covering private equity and investment.

Jess Clark is a City A.M. news reporter covering private equity and investment.

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US telecoms giant Qualcomm has won two preliminary injunctions against Apple banning the importation and sale of several iPhone models in China.

Apple shares dipped by as much as two per cent today after a Chinese court ruled that the sale of seven iPhone models infringed upon two of Qualcomm’s patents, before later recovering most of their losses.

The patented technology allows customers to adjust and reformat the size and appearance of photographs and manage applications using a touch screen. Qualcomm previously provided modem chips to Apple.

Qualcomm executive vice president and general counsel Don Rosenberg said:“We deeply value our relationships with customers, rarely resorting to the courts for assistance, but we also have an abiding belief in the need to protect intellectual property rights.

“Apple continues to benefit from our intellectual property while refusing to compensate us. These court orders are further confirmation of the strength of Qualcomm’s vast patent portfolio.”

The ruling applies to the importation, sale and offer for sale of the 6S, 6S Plus, 7, 7 Plus, 8, 8 Plus and X iPhone models running Apple's older operating system, iOS 11.

Apple said all iPhone models will remain available to Chinese customers as the company has since introduced a newer operating system.

"Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world,” an Apple spokesperson said.

"All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated. We will pursue all our legal options through the courts."

Meanwhile, European competition commissioner Margrethe Vestager told Reuters that the watchdog could investigate Apple Pay if it receives formal complaints. The regulator made preliminary enquiries into mobile payment service earlier this year and found it did not dominate the market