In order to protect Maori Apple, other vendors of Qualcomm or launch a coordinated attack

Foreign media recently wrote that in the context of the decline in the growth rate of the smartphone market, Apple initiated a lawsuit against Qualcomm, the purpose of which is to lightly load the huge burden of patent licensing fees to increase gross profit margin. In the future, other manufacturers will probably catch up and attack the Qualcomm group.

Last Friday, just three days after US regulators accused mobile chip maker Qualcomm of using its anti-competitive strategy to maintain its monopoly in the key chip business of mobile phones, Apple also filed a patent grant of $1 billion. An allegation was filed against Qualcomm. Apple alleged that Qualcomm's chip patent fees were too high, and it also refused to pay Apple a pre-committed refund of approximately $1 billion in fees related to the purchase of chip patents.

Mike Walkley, an analyst at Canaccord Genuity, a Canadian investment bank, said: "Apple's lawsuit is like another 'co-attack attack' for Qualcomm. Smartphones are a fairly mature industry, and manufacturers are eager to increase their profits."

In the past five fiscal years, Qualcomm has earned a full profit through patent licensing, and analysts believe its gross margin is as high as 61%, and this number will continue to grow in the future.

In contrast, Apple, which has been regarded as a profit harvester in the smart phone industry, has a gross profit margin of only 39% last year. It is expected that its gross profit margin will continue to decline this year. Samsung Electronics is the same as Apple, with a gross margin of only 39%, and the two giants contributed about 40% of the revenue to Qualcomm.

In recent years, the pace of the smartphone industry has gradually slowed down, and the competition between Samsung, Apple and a number of Chinese manufacturers has intensified. According to IDC, in 2016, global smartphone shipments reached 1.45 billion units, a year-on-year increase of only 0.6%. In the second quarter of 2015, smartphone shipment growth was still double-digit.

As the home of Samsung and LG, in December last year, the Korea Fair Trade Commission issued a fine of 1.03 trillion won (about 880 million US dollars) to Qualcomm on the grounds that Qualcomm adopted unfair measures in patent licensing.

In China, the world's largest mobile phone market, Qualcomm can not be immune. In February 2015, Qualcomm was also fined 975 million US dollars in the Chinese market. In order to continue to enjoy the Chinese market dividend, they can only pay fines.

In Friday's case, Apple also said that Qualcomm levied five times the patent fee for other companies. Whether or not to use Qualcomm's chips, Apple would pay Qualcomm hundreds of dollars for every mobile phone sold. They want regulators to change that.

Qualcomm said that in order to gain the support of the regulatory authorities, Apple concealed the relevant information and distorted the facts.

For Apple investors, as long as they can reduce the cost of the iPhone, it is a huge benefit.

"When your enemies are injured, they will definitely fight back without any means," said Marlowa, chief investment officer at Victory Capital Management. "As long as Apple has the opportunity to reduce costs, whether it is legal or not, they will achieve their goals through new technology or litigation."

Last year, iPhone sales fell 8.3%, the first time since its release in 2007. At the same time, due to the rise of Chinese manufacturers, the average selling price of the iPhone has dropped from 687 US dollars at the peak of 2015 to 619 US dollars (iPhone SE has lowered the average selling price).

For Qualcomm’s lawsuit, Apple has had a preview on the iPhone 7. Originally Qualcomm was the exclusive supplier of Apple's modem, but this time Intel went out halfway and almost took half of the share.

However, such lawsuits usually take several years to produce results. Qualcomm has extensive experience and they have been playing such games with manufacturers for the past 20 years, but in the end they have all become winners.

Canaccord Genuity's Walkley said: "Apple's move is also to pose, they want a lower patent license fee, subverting Qualcome's rule for more than 20 years. For Qualcomm, this is not a good thing, because there is Apple taking the lead Other companies will follow the footsteps to find Qualcomm to ask for money." (Compile / Reiz)

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