Qualcomm Incorporated (NASDAQ: QCOM) announced on Thursday that it has posted security bonds totaling EUR 1.34 Billion. The Company said that the bonds are required so it can enforce the remedies ordered by a Munich court back in late December after the court found that Apple was infringing upon Qualcomm’s patents.
Apple was found violating Qualcomm’s patented power savings technology used within smartphones. Due to the violation, Apple was ordered to cease the sale, offer for sale and importation for sale of all infringing iPhones in Germany. The court also ordered Apple to recall infringing iPhones from third-party resellers in Germany as well.
The bonds are required to cover potential damages incurred by Apple if the decision by the court is overturned or appealed.
Previously, it was noted that Apple’s iPhone 7 and 8 models would not be sold in 15 retail locations in Germany. However, at the time, the iPhone 7 and 8 models were still being sold through third-party resellers.
Now, on Apple’s German store site, the iPhone 7 and 8 models have been taken down. The site currently only features the iPhone XR and XS as well as the older iPhone 6 models.
Apple said it intends to appeal the court order, according to TechCrunch.
“Qualcomm’s campaign is a desperate attempt to distract from the real issues between our companies. Their tactics, in the courts and in their everyday business, are harming innovation and harming consumers. Qualcomm insists on charging exorbitant fees based on work they didn’t do and they are being investigated by governments all around the world for their behavior. We are of course disappointed by this verdict and we plan to appeal.” Apple said in a statement back in December.
Apple’s Chief Executive Officer Tim Cook released a statement to shareholders on Wednesday about a revised guidance outlook. Cook slashed Apple’s revenue forecast to USD 84 Billion from the previous expectation range of USD 89 Billion to USD 93 Billion.
Cook said that Apple sees economic weakness coming from some emerging markets, which he said it turned out to have a “significantly greater impact” than projected. Cook highlighted the economic declaration ongoing in China, which he says it causing damage to Apple.
China has caused major problems for many industries due to the ongoing trade war tensions. Cook noted in the statement that China’s slowing economy is a result of the trade tensions, as the country reported its second lowest GDP growth in the last 25 years.