Apple stole the show on Monday, with a sharp decline, followed by a rise to finish in the green. Markets have reacted to news that Qualcomm won a Chinese court ruling over Apple, which would lead it to stop importing and selling several iPhones. A court has in fact ruled that Apple had infringed Qualcomm’s two patents (on swipe use of touch-screen applications and resizing in photo editing).
Apple challenges the extent of the ban, stating that the patent only affects iPhones running on older operating systems. The California group suggested plan to appeal the Chinese court ruling, saying that “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,” Apple said in a statement. “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”.
For its part, Qualcomm affirms that “we strongly believe in the need to protect intellectual property rights”, and adds that “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.”
Several other major technology stocks saw significant technical rebounds on Monday, like Facebook (+3.2%), Microsoft (+2.6%), and to a lesser extent Amazon (+0.7%), Alphabet (+0.6%) and Netflix (+1.7%).
IBM climbed by 1.5% after the IT giant announced a definitive agreement to sell its software products to HCL in a deal valued at $1.8 billion. The transaction is expected to complete in mid-2019, subject to the completion of the applicable regulatory reviews.
GoPro moves part of its production from China to the United States. The relocation of part of the production will take place next summer. For the other markets, the company continues to make the devices in China. The leadership of GoPro speaks of a “proactive” response to the current trade concerns. China and the US battled each other over the past few months with import tariffs. Since the recent meeting between presidents Donald Trump and Xi Jinping, there has been a ‘ceasefire’ for 90 days. The arrest of Huawei’s financial headwoman Meng Wanzhou raised concerns about the relationship between the countries.