Briefing: Apple China to update iOS in a bid to resolve patent case

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Apple says it will update software in response to China iPhone injunctions – SCMP

What happened: In order to avoid compliance issues, US technology giant Apple has said it will release a software update next week after a Chinese court issued an order instructing the company to stop selling certain iPhone models in China. The move comes after the court granted US chipmaker Qualcomm two preliminary injunctions against Apple in an ongoing patent dispute.

Why it’s important: Apple is still currently selling its phones in the country through its online and offline stores. As a result, Qualcomm says it has contacted to court to enforce the ruling. The spat comes as Apple is already under pressure in from competitors in the region, which offer high-spec models at lower price points. Apple suppliers have also said they would pull production from China if higher tariffs are imposed amid the trade war between the US and China. Should the rates rise to 25%, with the US giant absorbing the costs, Apple would face an earnings-per-share (EPS) decline of $2.50.