The Apple vs Qualcomm case highlights that even on a business to business level, unfair charges seem to be a thing, and in this case a $9 billion thing. Qualcomm is seeking royalties from Apple for the use of their chip cards, while Apple feels that the initial payment for the chip card should suffice as a purchase.
With these high costs levied by Qualcomm, it’s the consumer who feels the pinch in the long run as handsets and communication becomes expensive. But the royalties case only seems to rally consumers together who have troubles of their own with iPhone, who seems to be hemorrhaging support as their share price plummets.
China Backs Qualcomm
At the root of Qualcomm’s disgust with Apple is the inability to find common ground regarding the software patents on the devices. China seems to back this idea and has forced Apple to make the necessary software updates in order to comply with these patents. For Apple, this is a major blow as the sales injunctions took place on six of their most popular devices. While this is not the only litigation against Apple, it is one that may spur consumers on to take the technology giant to task for their exorbitant licensing and upgrade costs.
Subscriptions Land Apple The Coveted $1 Trillion Value Cap
2018 has been a tough year for Apple, who just had the misfortune of being found out for its devious sales strategy regarding faulty battery life late 2017, which mainly affected the iPhone 6 range. Lawsuits and consumer complaints escalated as users ditched the brand and decided to side with competitors such as Samsung and Huawei. To disgruntle users even further, there has been a significant hike in the cost of keeping an Apple product with regards to the subscriptions for its various apps.
Despite experiencing a few dips due to the Qualcomm debacle, Apple has managed to breach the $1 trillion market cap, making it the world’s first trillion dollar company. While it reached this level only briefly, Apple is breaking ground that few others are able to even dream of. Analysts suggest that the significant increase in its products is not necessarily the driving force, but rather, all the additional services such as subscriptions and updates. The demand for these products has consumers lining up to extend their lines of credit to own what is regarded as the best tech on the market.
But Why The Big Fuss About Subscriptions?
As consumers follow the legal battle between Qualcomm and Apple, it is clear that the tech giant is not well-loved by its suppliers. Back in 2011, Apple enjoyed victory in the Apple iStore antitrust lawsuit, however, the supreme court might just revive the case due to technicalities that could see justice on the side of the plaintiffs. For Apple, this means that they may lose some or part of the 30% fee they levy on developers who wish to list their apps in the iStore.
2018 Might have been a tumultuous year for Apple, but if the markets have shown us anything, it’s Apple’s ability to bounce back.