Chapter 127: Promotion

Yike countersues Qualcomm, headline!
Apple and Samsung file antitrust lawsuits against Qualcomm, headline!
The "Big Three" suddenly collaborate against Qualcomm, headline!
With a flurry of news coming in, offline print media couldn't keep up with reporting, while online media followed up at lightning speed.
Three high-end smartphone brands, which just launched new products at the end of last month, coincidentally filed lawsuits against Qualcomm. It's hard to believe there was no tacit understanding or collusion; yet the closeness of their relationship is indeed quite perplexing.
Among these three, Apple and Yike belong to different smart system camps, and the relationship between Samsung and Apple is tense as they are involved in a patent lawsuit. Yike is leveraging "Kesheng" to target Samsung's entire strategy outside of the high-end market. This year, Apple has also launched a cheap version of its product in an attempt to capture the mid-range market.
Despite the rapid growth of smartphones worldwide, three brands are clearly in fierce competition for a larger share.
Under such circumstances, Qualcomm's approach to capturing profits has evidently frustrated all three companies.
As the three major manufacturers have successively declared war on Qualcomm, manufacturing plants such as Hon Hai and Luxshare, influenced by their large clients, have also expressed dissatisfaction with Qualcomm, either directly or indirectly.
For instance, Hon Hai, which has strong capabilities, has directly joined the ranks of those suing Qualcomm for antitrust violations.
For example, Luxshare, which has seen growth in recent years, is leaning towards multiple major clients but also wants to leave room for Qualcomm. They are negotiating to propose an alternative model for patent licensing.
However, regardless of the circumstances, the intrigued media are digging deeper, both exposing more industry dynamics and analyzing the successes and failures of this event.
The joint efforts of smartphone giants and manufacturers are indeed impressive, but amidst the excitement, how much tangible effect can it actually bring?
The U.S. patent expert Fast spoke to The New York Times about the potential outcomes under the current legal system, believing that Qualcomm retains an advantage due to its core patents.
“Qualcomm is often described in the industry as 'buying patents, giving out chips.' Although its advantages in the 4G era are not as prominent as before, the numerous standard-essential patents it holds are difficult to circumvent.”
“Regarding the definition of standard-essential patents, there are ambiguous areas in the internationally accepted FRAND principles, and past cases do not support Yikefang's claim of patent exhaustion applicability.”
Fast discerned the intentions and goals of companies like Yike, but cannot provide much support for Yike's side based on the current American case.
Of course, things can change; the overwhelming public opinion will inevitably be taken seriously by the judiciary and antitrust agencies. However, at this point in time, the advantage lies with Qualcomm.
Fast explained in straightforward language the layout of standard essential patents and Qualcomm's strategies over the years, and why companies like Yikou and Samsung have chosen to take action at this time.
```htmlCompared to 3G and 2G, Qualcomm's power in the 4G era has indeed weakened.
"These types of patent lawsuits often take a long time to yield results, and the court's rulings may face repeated appeals and delays; perhaps this is the main objective of companies like Eecore and Samsung."```
“During the litigation period, mobile phone manufacturers can suspend the payment of patent fees. If the lawsuit drags on for a year or two, the patent licensing fees, which account for 80% of Qualcomm's profits, will significantly decline, inevitably putting immense pressure on the company and its management.”
"Their lawsuits target patents and antitrust issues, but the real pressure on Qualcomm may come from elsewhere."
"As I mentioned earlier, Qualcomm still holds a patent advantage, but these types of lawsuits often end in settlements. While Xiaomi, Samsung, and Apple do not have a formal joint lawsuit, their recent concentrated actions have undoubtedly encouraged many smaller manufacturers to take action, which is something Qualcomm does not want to see."
The current situation is that Yike is leading the way by not paying. Seeing this, Apple also decides not to pay. Then Samsung follows suit, thinking if they aren't paying, neither will I. As a result... the Big Three all decide not to pay... So, let’s all just not pay!
Faast expressed his views on this mutual accusation and also mentioned very unlikely scenarios at the end.
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"The current patent licensing model of Qualcomm indeed has a lot of controversy. If Yike and they really... according to Cook, if he and Fang Zhuo truly facilitate a change in the status quo, Qualcomm's disaster will be upon them."
“Once Qualcomm's core standard-essential patents are deemed to have issues, its non-standard-essential patents will struggle to exert much power, and its position in the communications field will certainly be significantly weakened in the future.”
“However, this may indeed require Yike and their team to make a great deal of effort.”
Faster subtly expressed the possibility, wanting to push for version changes and lock in Qualcomm's fighting ability, which seems like a low-probability event no matter how you look at it.
Although things are lively, it is still the official agencies that truly define the frangd principle.
If Qualcomm can suppress the three major companies, it will definitely continue to thrive, but if it is indeed brought down by the three major companies, it will also have significant symbolic meaning.
Expert analysis, media reports, and consumer attention have focused on it; the symbolic significance is still unclear, but Qualcomm's market value has continued to decline, stabilizing only after reaching $76 billion.
The legal process is lengthy, and Qualcomm has faced a sudden shock; its stock price may eventually recover.
However, at this time, Intel, which had a public spat with Qualcomm, has a vice president who pointed out an issue with Qualcomm.
“I have serious doubts about Jacob's strategic and management capabilities to lead Qualcomm.”
“Times have changed; Qualcomm can no longer rely on its old cdma patents to act without restraint.”
“This time, the smartphone brands opposing Qualcomm are mainly led by EasyCo, which was once a close collaborator with Qualcomm. Even after EasyCo canceled the flagship model using Qualcomm chips, Jacob continued to maintain his cooperation with competitors, until EasyCo now reintroduces its baseband chips, launching a fatal blow against Qualcomm.”
“All of this happened under Jacob's leadership, and Qualcomm may want to consider whether there are more suitable candidates for CEO.”
Intel's vice president made such a statement, which made onlookers like Fang Zhuo exclaim in admiration, thinking that someone has to take responsibility for Qualcomm's mistakes. With the stock price dropping so severely, can it all be blamed on external companies?
Fang Zhuo thought this, but did not expect to quickly receive a text message from Jacob.
This time, he was addressed by his full name.
“Fang Zhuo, you have gone too far. Do you really think that changing a CEO will stop Qualcomm from fighting for its own interests?” Jacob's message was clearly very angry.
Fang Zhuo felt rather helpless: "Jacob, wake up, I'm in Shanghai, and these Intel people are pointing fingers at you."
“The Intel people are nothing more than your knife, Fang Zhuo. The San Jose Federal Court will give a fair trial to a company like Yike,” Jacob ended the conversation with this subtle threat and implication.
Fang Zhuolue is troubled; Jacob used to have pleasant conversations with him, and Qualcomm is also a good partner. This really is... it can only go down one path.
Qualcomm that doesn't engage in monopolies is the good Qualcomm, and Jacob who is willing to let go is the good Jacob.
Take medicine for a cold, feeling drowsy, take a nap, tomorrow run 6k