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Qualcomm Won A Legal Dispute With Apple In China With Severe Consequences For Apple

Chipmaker Qualcomm has reported that a Chinese court has judged in its favor in a patent case against Apple in China, and a preliminary order has been issued prohibiting the import and sale of several iPhone models in China. This court decision thus makes impossible for the Chinese residents to buy iPhone 6S, 6S Plus, 7, 7 Plus, 8, 8 Plus and iPhone X models, even though it does not affect the phones launched this year, namely, the iPhone XR, XS, and XS Max.

The news has caused Apple’s shares to fall more than 2% at the opening of the market, while Qualcomm’s shares reacted with rises close to 4% at the beginning of the day.

The decision came from the Fuzhou Intermediate People’s Court in China, the same court that this year banned the import of some of the chips from the chipmaker Micron Technology in China.

Qualcomm Won A Legal Dispute With Apple In China

Qualcomm, which initially filed the case in China in late 2017, has received the court’s green light. The court decided that Apple has violated two of Qualcomm’s software patents to resize photographs and manage touch-screen applications.

“Apple continues to benefit from our intellectual property while refusing to compensate us,” said Don Rosenberg, general counsel for Qualcomm, in a statement. But because patents directly affect the software, Apple can make changes to its operating system to prevent patent infringement, so if the changes come, they can continue to sell their banned smartphones in the Asian country without an agreement with Qualcomm.

The patents that made the subject of the lawsuit are different from those both companies are disputing in other cases in their broad legal dispute. In fact, Qualcomm also asked the US regulators to ban the import of several iPhone models for patent reasons, but so far US officials have refused to do so.

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Markets News Tech

Huawei To Develop Its Own OS For Smartphones

It has been rumored for a few months that Huawei is developing its own OS for smartphones. When asked about this, the firm’s officials denied the information. But it now seems that they no longer want to hide their project. The Chinese giant has finally admitted that he is working on a new OS to replace Android. Bruce Lee, Vice President of Huawei’s Mobile Products Division, announced this on his Weibo account. So there is no longer any room for doubt.

Huawei to develop a new OS for mobile devices to replace Android

Bruce Lee announced the development of a new OS made by Huawei. However, he did not mention anything about the reasons for this decision. Is the Chinese manufacturer in bad terms with Google? Apparently not, since the two are working together on the development of the latter’s new operating system.

Otherwise, just like Apple, Huawei might also want to have its own OS for mobile devices to add its personal touches more broadly than EMUI would allow. That is very likely, but there is no indication so far that the company wants to move in this direction.

Huawei might develop its own OS for smartphones to tackle the US sanctions

The explanation that remains plausible at this time is that Huawei wants to protect itself from the US sanctions. As you might recall, the United States has increased its attacks on the Chinese manufacturer in recent months.

On the basis of suspicions of espionage, the US, for example, incited its allies to remove Huawei from their 5G infrastructures. In the current geopolitical context, it is, therefore, not out of the question that the American government should prohibit commercial relations between US-based companies, such as Google, and the Chinese tech giant.

Thus, Huawei might anticipate stricter regulations from the US and develop its own OS for smartphones in case the worst happens, and they could not use Android anymore.

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Economy Markets News

GM May Face Repercussions after Closing Five Plants

GM faces severe criticism after it announced the closing of five plants and more than 14,000 layoffs. President Donald Trump is unpleased by the news and announced via Tweeter that the federal government may cut all the tax breaks and subsidies received by GM, including tax credits for electric vehicles.

The threat seems real but the actually doing it will be a difficult task.

The EV credit is granted to consumers

When the Congress decided to establish the credits back in 2015 the aim was to encourage consumers to buy eco-friendly cars. In 2007 the law was expanded and consumers that bought an electric vehicle qualified to receive up to $7,500 in federal tax credits on the tax return. The decision aimed to make electric vehicles more affordable as the technology was still relatively new and many were unconvinced by advertising.

There is a catch: after a manufacturer sold 200,000 electric vehicles the credit will begin to phase-out until it is completely removed. The Chevy Volt is rapidly approaching the limit and it may break it by the end of the year, triggering the phase-out process. Tesla has already achieved the limit.

It’s up to the Congress

Any change that affects spending must be voted by the Congress. A bill that proposes the removal of the 200, 000 vehicle limit in exchange for a total phase-out in 2022 is already being discussed. Two more bills that also tackle this issue have been presented last month.
It mainly benefits high-income households

The electric vehicle credit policy has faced heavy criticism before since high-income households are the main beneficiaries. Almost 80% of the households that claimed the benefit enjoy an average gross annual income of more than $100,000 and more than 99% if the credits were claimed by huoses with an average income of $50,000.

What will happen in the following days remains to be seen but G.M. is already facing consequences as its stocks started to plummet after the announcement.

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Crypto Markets News

VanEck Subsidiary Launched Bitcoin (BTC) OTC Market Index

MV Index Solutions, a subsidiary of New York-based investment and financial analysis company, VanEck, announced on Tuesday the launch of an OTC (over-the-counter) Bitcoin (BTC) market index, using Circle Trade, Cumberland and Genesis Trading as the primary sources for its information.

According to the press release, this is the first index of Bitcoin (BTC) OTC index market. OTC trading involves the exchange of goods, commodities and any other investment asset outside the books of purchase and sale of a particular investment firm, with a broader portfolio that can handle different types of prices and more substantial investments.

“We are very happy to be the first provider to launch a Bitcoin (BTC) index based on OTC trading desk prices. This allows over-the-counter clients to use this index as a reliable benchmark for their transactions or possible investment products,” said Thomas Kettner, the General Manager at MV Index Solutions.

VanEck Subsidiary Launched Bitcoin (BTC) OTC Market Index

VanEck is a significant company in the cryptocurrency ecosystem. Its Bitcoin (BTC) ETF application to the US Securities and Exchange Commission (SEC) is still under evaluation by the authority, while the final decision on that is expected in March 2019.

Executives from Circle, Genesis, and Cumberland assured that with the creation of this Bitcoin (BTC) OTC index, the investors have access to an instrument that will be extremely useful for this type of over-the-counter investments. According to VanEck’s Chief Strategy Officer, Gabor Gurbacs, this may help new institutional investors enter the OTC Bitcoin (BTC) market.

Similar to the creation of this Bitcoin (BTC) OTC market index, other instruments and investment assets linked to cryptocurrencies would be gradually incorporated into the more conventional stock market. This week the Swiss stock exchange Six Exchange received authorization to trade one ETP (exchange product) of five cryptos in a basket that includes Bitcoin (BTC), XRP (XRP), Ethereum (ETH), Bitcoin Cash ABC, and Litecoin (LTC).

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Markets News Tech

iPhone XR Is A Huge Disappointment, And That Reflects In Apple Stock

Bad news continues to come out for Apple, whose stock was painfully closing at $176.8 (-0.1%) last night on Wall Street, after two sessions of sharp corrections. According to the Wall Street Journal today, Japanese telecom operators will receive subsidies from Apple, which they should use to reduce the lowest-priced device of the iPhone 2018 models even more. We talk about iPhone XR.

This information confirms a likely very disappointing launch of the device and will fuel fears of a more general slowdown in demand for Apple’s flagship product. “Less than a month after the release of the iPhone XR, Apple Inc. plans to offer subsidies to mobile network operators in Japan to support sales of its new cheapest smartphone,” says the WSJ.

This “promotion” on the most affordable device among the new ones, as well as the cuts in production plans, are a sign of limited consumer enthusiasm for this iPhone XR device, which displays fewer features than the other two new models released this year. Japanese GSM operators could reduce iPhone XR prices as early as next week.

iPhone XR Is A Huge Disappointment, And That Reflects In Apple Stock

Earlier this week, the Wall Street Journal reported that Apple had reduced production orders for the three iPhone 2108 models. It would have become more difficult for Apple to anticipate its needs in components and devices, in particular, due to a demand that’s lower than expected.

Yesterday, Foxconn, the world leader in electronic subcontracting, intended to reduce its costs by 20 billion Yuan (nearly $3 billion) in 2019, Apple’s supplier being confronted with “a very difficult and competitive year” according to Bloomberg. The Taiwanese group reported that it was carrying out a regular annual review of the budget for 2019.

Of course, such an adjustment could also increase concerns about the iPhone XR demand. Taiwanese spending on the iPhone models assembly activity is expected to fall by 6 billion Yuan in 2019, and the group is also reportedly considering cutting 10% of ‘non-technical’ jobs, added Bloomberg.

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