Apple Receives Favorable ITC Ruling - Analyst Blog

By
A A A

Apple ( AAPL ) has reportedly received a favorable preliminary ruling from the International Trade Commission ("ITC") in a patent infringement case against Samsung.

The ITC ruled that Samsung has infringed Apple's patents on a certain "text-selection feature". However, the ITC ruled out Apple's allegation that Samsung violated Apple's patent for the detection of a device when plugged into its microphone jack.

Now, the full commission will decide the patent infringement issue by Samsung in August. If it upholds the ITC judge's decision, Samsung could face a sales ban of its Galaxy, Transform and Nexus devices in the U.S. The ITC has the capacity to block sales of disputed articles in the U.S.


Over the last couple of years, Apple has been highly vocal about protecting its intellectual property from misuse and violations. The company has been aggressive in filing lawsuits against other handset makers such as Samsung and HTC, and has accused these manufacturers of blatantly copying its iPhone and iPad designs. So far, these lawsuits have yielded mixed results for Apple.

The probable ban on many of Samsung's devices in the U.S. will likely provide Apple the chance to regain some of the ground it has lost to its South Korean rival. In 2012, Samsung emerged as the leader in the smartphone market with 30.3% market share compared to Apple's 19.1%. It is noteworthy that Samsung's market share has grown 129.1% from the previous year in contrast to a 46.9% increase in Apple's market share during the same period of time.

We believe that significant share gains by Apple will prove to be difficult given the stiff competition from Samsung both in terms of product launches and pricing of products. Other smartphone makers such as Nokia ( NOK ), Sony ( SNE ) and Research In Motion ( BBRY ) are other contenders for market share.

We also believe that Apple's ability to innovate and grow in developing nations, where the market is more cost-sensitive, will determine the company's fortunes in the future.  Moreover, Apple's loyal customer base coupled with its solid balance sheet and robust revenues bode well.

Currently, Apple has a Zacks Rank #3 (Hold).



APPLE INC (AAPL): Free Stock Analysis Report

RESEARCH IN MOT (BBRY): Free Stock Analysis Report

NOKIA CP-ADR A (NOK): Free Stock Analysis Report

SONY CORP ADR (SNE): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AAPL , BBRY , NOK , SNE

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

26,765,672
  • $18.18 ▲ 1.11%
13,536,355
  • $3.245 ▲ 0.15%
12,935,267
  • $114.59 ▲ 0.53%
11,029,541
  • $96.8043 ▲ 3.21%
10,253,653
  • $7.45 ▲ 0.54%
9,672,235
  • $7.515 ▲ 1.69%
9,085,686
  • $3.48 ▼ 0.29%
8,944,757
  • $105.21 ▲ 0.16%
As of 12/29/2014, 11:43 AM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com