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iPhone ban in Germany set to start after Qualcomm deposits bond

iPhone ban in Germany set to start after Qualcomm deposits bond 1
iPhone 8 is among the phones banned in China

After Qualcomm posted bond mandated by the German court as a prerequisite to enforcing the order banning the sale of certain iPhone models, Apple is expected to pull them from the stores across Germany.

According to a report by Reuters, Qualcomm has posted the $1.5 billion security deposit as required by the German court, which had found Apple infringed Qualcomm patents.

The case marks a growing feud between the two companies with Qualcomm accusing Apple of infringing its patents and giving Qualcomm IP to it’s competitors while Apple claims Qualcomm overcharged them for the royalties.

The German ban also marks the second successful attempt by Qualcomm to get Apple’s iPhones banned after China.

Apple share prices continue to slide

Apple getting embroiled in a fight with Qualcomm has not helped its share prices which has lost 40% of its value since the peak in October and almost 10% in last week.

Apple’s problems have been exacerbated by its recent cut in revenue projection which has been hurt by weak sales in China, among other factors. Apple recently announced that it expects a revenue shortfall in the last quarter of the year, the first such instance in over a decade.

A recent analysis by market research firm Citi Research has warned that the iPhone sales may dip by further 5-10% in the first quarter of 2019 with iPhone XS Max to be hit hardest with expected to dip in demand by almost 50%.

A temporary slump or shift in market outlook

While it is too early to speculate if the trend represent the new market dynamics or just a temporary slump due to the trade war between China and USA.

Warrent Buffet, billionaire investers to owns almost 5% of Apple shares, had stated in past that he would love to see Apple stock decline so he could buy more. He has been a vocal fan of the iPhone and has publicly praised the phone in the past even stating that he thinks iPhone is underpriced.

But many analysts believe, this could be a sign of things to come with Apple failing to break ground in India and losing market share in China to rivals. The two countries represents 40% of global population where almost 600 million smartphones were sold.

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