Apple: Investors calm over possible iPhone, iPad ban

The potential partial import limitation could directly impact the company's sales in the US, a market that represents a third of sales.

By Forbes Digital Jun 6, 2013 9:46AM

The Apple Inc. logo is displayed on the back of the new MacBook Pro David Paul Morris/Bloomberg via Getty ImagesBy Abram Brown


Apple (AAPL) investors, a group recently characterized by pessimism on the tech giant's future, seemed Wednesday oddly out of character. They stopped short of a large sell-off in Apple stock despite a legal decision that could stop the sale of some iPhones and iPads in the U.S.


The U.S. International Trade Commission ruled that Apple violated a Samsung (SSNLF) patent over technology that sends information over wireless networks. An appeals court, or a presidential veto, could overturn the decision, but if the ruling stands, Apple products like the iPhone 4, iPhone 3GS, iPad 3G, iPad 2 3G and the iPad would be prevented from import onto AT&T's network.


Newer Apple products, such as the iPhone 5 and fourth-generation iPads, would be unaffected, and Apple quickly vowed to fight the ITC's decision. Apple's promise to push the case into an appeal's court kept Apple investors from panicking. Shares closed only a little down just 0.5% to $447, a time when the Nasdaq is off 0.3% to 29,966.50.


Other opportunities for concern about Apple's future in past months immediately sparked gloom from its investors. CEO Tim Cook struggles to define his tenure, taking criticism for mostly introducing product updates–and none of the flashy new product launches that propelled Apple to become the world's most valuable company and made Steve Jobs a Silicon Valley deity. Apple shares are down 19.9% in the last year. The Nasdaq, by contrast, has gained 25.4%.


The rivalry between Samsung and Apple, one-time business partners turned bitter rivals, creates a messy legal situation, in which both hurl accusations of competing patent. Apple last year won a jury trial and $1 billion in damages against Samsung. But Tuesday's ITC decision may force the two to consider a settlement.


Momentum increasingly shifted to Samsung in past months, as Google (GOOG)-powered Android phones greatly outsold Apple's iPhone. Indeed, 75% of the smartphones sold in the first-quarter were Androids, and Samsung accounted for 31% of those sales, according to Gartner.


If the ruling stopped some Apple sales in the U.S., a market that represents a third of sales, it would directly hit the $3.4 billion Apple takes in from the iPhone 4, according to Piper Jaffray's Gene Munster. The iPhone 5, by comparison, makes considerably more, some $14.9 billion.


More from Forbes

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

109
109 rated 1
276
276 rated 2
421
421 rated 3
629
629 rated 4
511
511 rated 5
538
538 rated 6
686
686 rated 7
507
507 rated 8
331
331 rated 9
109
109 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
UPLULTRA PETROLEUM Corp10
TAT&T Inc9
COPCONOCOPHILLIPS9
DVNDEVON ENERGY CORPORATION9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.