Apple Under Pressure

Apple is facing pressure from courts, parliaments, regulators and protestors. But how is it responding?

- CHARLOTTE HENRY

Individuals and companies around the world are feeling the economic pinch, and this time even Apple does not seem to be completely immune. From ongoing global chip shortages to production delays due to Covid lockdowns in China, not to mention inflation, Apple is facing significant headwinds. Yet, in the quarter ending 25th June 2022, the company posted record revenue of $83 billion, a 2% year-on-year increase, despite what CEO Tim Cook referred to as a “challenging operating environment”.

But it’s not just the economic backdrop that is challenging for the company. The regulatory landscape is getting tougher, with watchdogs and lawmakers around the world focusing in on Apple. Scrutiny of the App Store remains intense. Meanwhile, Ericsson is suing Apple in a dispute over 5G licences. In theory, this could result in iPhone sales in the UK and elsewhere being suspended.

Apple vs Ericsson

Apple and Ericsson have been engaged in a long-running legal battle, which began in October 2021. The telecoms firm licenses some of its 5G technology to Apple. It originally claimed that Apple was using improper means to reduce the royalty rates it owed. Cupertino hit back in December that year and accused Ericsson of deploying “strong-arm tactics” to get patents renewed.

By January 2022 things had escalated, with Ericsson filing a further set of patent infringement lawsuits. At that time, a spokesperson for the Swedish firm told the Reuters news agency: “Since the prior agreement has expired, and we have been unable to reach agreement on the terms and scope of a new licence, Apple is now using our technology without a licence.”