Qualcomm is reportedly planning to ask the US International Trade Commission (ITC) to block imports of Apple's iPhone into the market.
Qualcomm's latest escalation of the legal dispute with Apple has the potential to effectively block sales of the devices in the US, Bloombergreported, citing “a person familiar with the company's strategy”.
Apple and Qualcomm are suing each other in the US, China and the UK over licensing terms for iPhone components.
Apple is accusing Qualcomm of abusing its dominant market position to force Apple to pay billions in superfluous royalty payments, and Qualcomm accusing Apple of failing to engage in good-faith negotiations regarding Qualcomm's 3G and 4G standards-essential patents.
Regardless of the likelihood of an iPhone import ban, such a decision would have a devastating impact on Apple's bottom line. The US market accounts for around 40% of Apple's total sales, with the Americas region generating $86.6 billion in revenue for the company last year.
Much is at stake for Qualcomm as well – the company has already educed its revenue outlook for the quarter by $500 million based on the likelihood of missing out on licensing revenues from Apple. Apple accounts for nearly a third of the company's licensing revenue.