Key Developments: Apple Inc (AAPL.O)
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2 Jul 2013
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Latest Key Developments (Source: Significant Developments)
VirnetX Holding Corp Announces Apple Inc Files To Appeal $368 Million Award In Patent Case-DJ
Dow Jones reported that VirnetX Holding Corp said Apple Inc. has filed to appeal a $368 million award the Internet security firm was granted by a jury in February in a patent infringement case. In February, U.S. District Court for the Eastern District of Texas entered a $368 million final judgment against Apple after finding that four of VirnetX's patents were infringed and valid. The district court last month denied a motion filed by Apple to alter or amend the judgment. Apple has now appealed to the Court of Appeals for the Federal Circuit. A federal court in February upheld VirnetX's $368 million award in a patent suit against Apple, but Cisco Systems Inc. (CSCO) prevailed in a separate suit in March that accused the networking company of violating one of VirnetX's patents by selling routers designed to run virtual private networks. Full Article
Apple Inc Wins $30 Million iPad Contract From LA Unified School District-DJ
Dow Jones reported that Apple Inc $30 million iPad contract from LA Unified School District. The LA Unified School District (LAUSD) awarded Apple a $30 million contract to provide its students with iPads. The deal, which was approved in a 6-0 vote by the district's school board, will see Apple supplying about 35,000 iPads to 47 LAUSD schools at a cost of about $678 per device. Full Article
Samsung Electronics Co Ltd Scores Victory Over Apple Inc-Reuters
Reuters reported that Samsung Electronics Co Ltd scored a victory over rival Apple Inc in their long-running dispute over mobile device patents after a U.S. trade agency issued an order banning older but still-popular Apple products from the U.S. market. The U.S. International Trade Commission (ITC) ruled on Tuesday that the Silicon Valley giant had infringed on a patent owned by Samsung that involves the ability of devices to transmit multiple services simultaneously and correctly through 3G wireless technology. The independent federal agency slapped a ban on the import or sale of the iPhone 4, iPhone 3GS, iPad 3G and iPad 2 3G distributed by AT&T T.N, the biggest seller of Apple devices in the United States when Samsung filed its complaint in 2011. The products are assembled in Asia. U.S. President Barack Obama has 60 days to review the ruling. If he does not veto the order, it will go into effect. Full Article
Fidelity Contrafund Cut Apple Inc Stake-Reuters
Reuters reported that Fidelity Investments' Contrafund, the largest active shareholder in Apple Inc, cut its stake in the iPad and iPhone maker by a further 9% in April. Full Article
Apple Inc Settles iPhone Water Damage Lawsuit for $53 Million-WSJ
The Wall Street Journal reported that Apple Inc has agreed to pay $53 million to settle a class-action suit associated with warranties for iPhones and iPods, according to lawyers representing plaintiffs in the litigation. In documents filed with the United States District Court for the Northern District of California Tuesday, class-action attorneys said the money from Apple would be placed in a fund to be shared by roughly 153,000 customers who had been denied warranty coverage under an Apple policy associated with handling water damage. The papers seek court approval of the proposed settlement. Full Article
Apple Inc Facing Scrutiny From EU Over iPhone-DJ
Dow Jones reported that according to The Financial Times report the European Union is investigating whether Apple Inc. has been using its sales tactics and technical restrictions on the smart-phone in an attempt to squeeze competitors from the market. Several EU mobile network operators were sent questionnaires from the EU last week, which told participants the European Commission is looking at distribution terms that might aid Apple by seeing to it rivals are unable to secure better sales deals, the FT said. The inquiry is still in the preliminary stages, the FT said. Prior to launching a formal investigation, the commission must determine that Apple is dominant in the EU smartphone market. Full Article
Apple Inc's Stateless Subsidiaries Lower Tax Bills- Senate Report-Reuters
Reuters reported that using an unusual global tax structure, Apple Inc has held billions of dollars in profits in Irish subsidiaries to pay little or no taxes to any government, a U.S. Senate report on the Company's offshore tax structure concluded on May 20, 2013. In a 40-page memorandum released a day before Apple CEO Tim Cook is scheduled to testify before Congress, the Senate's Permanent Subcommittee on Investigations identified three subsidiaries that have no "tax residency" in Ireland, where they are incorporated, or in the United States, where company executives manage those companies. The subsidiary, which has a Cork, Ireland, mailing address, received $29.9 billion in dividends from lower-tiered offshore Apple affiliates from 2009 to 2012, comprising 30% of Apple's total worldwide net profits, the report said. Apple has exploited a difference between Irish and U.S. tax residency rules," the report said. Ahead of Tuesday's hearing, Apple said on Monday it does not use "tax gimmicks" and that the Company will pay more than $7 billion in U.S. taxes in fiscal 2013. Apple defended the main subsidiary highlighted by the subcommittee's report, saying it does not reduce Apple's U.S. tax liability, the Company said in a comment posted online as part of Tuesday's prepared remarks. Subcommittee staffers said on Monday that Apple was not breaking any laws and had cooperated fully with the investigation. Full Article
Apple Inc Wows Market With Record $17 Billion Bond Deal-Reuters
Reuters reported that Apple Inc wowed the debt markets on April 30, 2013, with the largest non-bank bond deal in history, offering a whopping $17 billion for sale as the U.S. computer giant switches strategy to placate restless shareholders. Just a week after announcing its first drop in quarterly earnings in a decade, Apple came to market with the massive deal to raise funds for an ambitious program that will return $100 billion in cash to holders of Apple shares. Sources said investors could barely submit orders fast enough to get in on the deal from Apple, the only major tech company without a single penny of debt on its books. The six-part all-dollar offering attracted more than $50 billion of orders by midday in New York - a massive level of demand even in the current red-hot climate of the bond markets. Full Article
Apple Inc Issues Q3 2013 Revenue Guidance Below Analysts' Estimates
Apple Inc announced that for the third quarter of 2013, it expects revenue of between $33.5 billion and $35.5 billion. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report revenue of $38.2 billion for the third quarter of 2013. Full Article
Apple Inc Increases Repurchase Authorization; Approves Quarterly Dividend
Apple Inc announced that its Board of Directors has authorized a significant increase to the Company’s program to return capital to shareholders. The Company expects to utilize a total of $100 billion of cash under the expanded program by the end of calendar 2015. This represents a $55 billion increase to the program announced last year and translates to an average rate of $30 billion per year from the time of the first dividend payment in August 2012 through December 2015. As part of this program, the Board has increased its share repurchase authorization to $60 billion from the $10 billion level announced last year. It is expected to be executed by the end of calendar 2015. Apple also expects to utilize about $1 billion annually to net-share-settle vesting restricted stock units. Additionally, the Board has approved a 15% increase in the Company’s quarterly dividend and has declared a dividend of $3.05 per common share, payable on May 16, 2013 to shareholders of record as of the close of business on May 13, 2013. Full Article
Yahoo buys mobile app co Qwiki
- Yahoo Inc said that it will buy Qwiki Inc, a mobile app for creating videos in Apple Inc's iPhone, as it tries to increase its presence in the world of smartphones and tablets.
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