Apple shares fall on Qualcomm injunctions in China

Chinese court rules that iPhone models breach patents

 

Apple fell in early US trading on Monday, after it was reported that the sale of some iPhone models were banned in China following a lawsuit. Some closely watched suppliers to the smartphone also traded lower.

Shares of the Dow component fell 1.6 per cent, and are trading nearly 30 per cent below record levels. The stock is on track for its first annual decline since 2015.

Among suppliers, Skyworks Solutions dropped as much as 2.6 per cent. Qorvo was off 1.2 per cent.

Qualcomm said it won a ruling in China against Apple. The Fuzhou Intermediate People’s Court ruled that Apple is infringing on two Qualcomm patents and issued injunctions against the sale of seven iPhone models in the country, including the iPhone X.

Apple subsequently said that all iPhone models would remain available in China, and that it would pursue legal options through the courts. China is a major market for Apple, accounting for about 20 per cent of 2018 revenue.

Shares of Qualcomm gained 2.9 per cent. – Bloomberg