Apple and Qualcomm Legal Feud could Lead to Significant Drops in iPhone X stock

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In the weeks prior to the Christmas season, ongoing legal battles between the two tech companies could see factory recalls for five different models of iPhone, including the iPhone 8 and the iPhone X.

In a recent corporate feud, electronic component builder Qualcomm has requested a large number of iPhones be recalled from the market before the holiday season due to competing for patenting claims. Qualcomm is one of the largest Apple collaborators.

For months, the two firms have been fighting in each other in courts of law over different patents. One of Qualcomm’s claims is that Apple stole its proprietary technology enabling communication through wireless means. Nonetheless, the first legal attack was initiated by Apple this January over claims that Qualcomm had provided them with unfair terms for licensing procedures.

This Thursday, November 30th, the component firm initiated a stern response, making its case to the ITC (short for the International Trade Commission in the United States). Qualcomm has filed a request for the ITC to block all models of Apple smartphone that employ the Intel modem in their hardware. Apple has used this modem for certain models provided to particular American carriers since the iPhone 7. A Bloomberg report published earlier this month explains that the case was filed in San Diego in a Californian state court. The suit makes claims that the tech giant gave Intel some of Qualcomm’s proprietary code, written into their confidential products.

In recent legal battles, Apple dismisses Qualcomm’s claims as attempts to overinflate their position in smartphone development, arguing that it was Apple, not Qualcomm, that was able to provide clients with a user-friendly, small smart mobile device.

Cnet reports Qualcomm’s response explaining that the patenting system was built to “reward innovation”, which it would not be doing in case it let Apple continue selling products running on Intel modems. It would much rather be doing quite the opposite in allowing the tech mammoth to commercialize patent-infringing products.

Apple filed its suit against Qualcomm in January of this year, totaling at $1 billion USD (the equivalent of £0.77 billion GBP). The company also discontinued payments for royalties to Qualcomm over claims that it was requesting payments for hardware that it had no involvement in developing.

A month ago, a Reuter analysis suggested that Qualcomm and Apple would stop their collaboration starting in 2018 on account of their current legal issues.