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Apple (AAPL) Loses Appeal With Optis Over 4G Patent Dispute
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Apple (AAPL - Free Report) recently lost its legal battle with Optis Cellular Technology. A U.K. court upheld the ruling that AAPL infringed two patents owned by Optis. The patents are claimed to be essential for 4G mobile technology used in iPhones.
The case is part of a long-standing legal battle that started in 2019, when Optis sued Apple for infringing eight of its patents which are essential to certain technological standards, such as 4G.
Apple had claimed that the two patents were not essential to 4G standards and it didn't use the patented technology in the UK, but the court rejected that argument.
The Court of Appeal's decision follows a previous ruling in October 2022, where Optis successfully appealed against the revocation of two other 4G-related patents. This ruling granted Optis the power to prevent Apple from further infringing upon their patents until a court has decided on the fair, reasonable and non-discriminatory terms of use.
The legal clash has posed significant challenges for Apple. The infringement of patents has raised concerns regarding Apple's adherence to intellectual property rights and compliance with fair licensing practices.
Apple Suffering from a Weak PC Market
Apple has been suffering from a weak PC market leading to a decline in worldwide shipments.
Per an article by Gartner, the worldwide PC shipments in the first quarter of 2023 declined by 30% year over year, due to oversupply and low demand of PC, stiff competition and the lack of innovation and differentiation.
In first-quarter 2023, Apple’s market share declined by 34.2% year over year to 8.7%. Other players like Lenovo (LNVGY - Free Report) , HP (HPQ - Free Report) and Dell Technologies (DELL - Free Report) held a larger market share than Apple with 23.3%, 21.8% and 17.3%, respectively.
In second-quarter fiscal 2023, it recorded a decline of 4.6% year over year to $79.93 billion in its product sales. Non-iPhone revenues (iPad, Mac and Wearables) plunged 31.1% year-over-year on a combined basis.
However, shares of Apple have surged 48.1% year to date compared with the Zacks Computer – Mini Computers Industry’s 47.7% increase in the same time frame. The uptick was primarily due to strong product pipeline, increasing customer engagement and constant innovation.
It also outperformed Lenovo, HP and Dell whose shares increased 31.9%, 14.4% and 35.8%, year-to-date, respectively.
In June 2023, Apple joined the mixed reality space with the launch of Apple Vision Pro. It also announced the 15-inch MacBook Air, a new Mac Studio and Mac Pro. Moreover, Apple introduced iOS 17, watchOS 10, iPadOS 17 and macOS Sonoma.
What Awaits Apple’s Shares in the Rest of 2023?
Apple has been benefiting from significant product launches, which is expected to bolster its product revenues, contributing 78% of second-quarter fiscal 2023 revenues.
The growing adoption of services like Apple TV+, Apple Arcade, Apple News+, Apple Card and Apple Fitness+ drives Services revenue growth. The newly-announced App Store for Vision Pro is expected to further drive growth.
This Zacks Rank #3 (Hold) company expects its third-quarter fiscal 2023’s year-over-year revenue growth to be similar to that of the fiscal second-quarter levels due to an unfavourable forex of 4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Apple's third-quarter fiscal 2023 revenues has been pegged at $81.11 billion, indicating a year-over-year decline of 2.23%. Earnings estimates have remained unchanged at $1.18 in the past 30 days.
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Apple (AAPL) Loses Appeal With Optis Over 4G Patent Dispute
Apple (AAPL - Free Report) recently lost its legal battle with Optis Cellular Technology. A U.K. court upheld the ruling that AAPL infringed two patents owned by Optis. The patents are claimed to be essential for 4G mobile technology used in iPhones.
The case is part of a long-standing legal battle that started in 2019, when Optis sued Apple for infringing eight of its patents which are essential to certain technological standards, such as 4G.
Apple had claimed that the two patents were not essential to 4G standards and it didn't use the patented technology in the UK, but the court rejected that argument.
The Court of Appeal's decision follows a previous ruling in October 2022, where Optis successfully appealed against the revocation of two other 4G-related patents. This ruling granted Optis the power to prevent Apple from further infringing upon their patents until a court has decided on the fair, reasonable and non-discriminatory terms of use.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
The legal clash has posed significant challenges for Apple. The infringement of patents has raised concerns regarding Apple's adherence to intellectual property rights and compliance with fair licensing practices.
Apple Suffering from a Weak PC Market
Apple has been suffering from a weak PC market leading to a decline in worldwide shipments.
Per an article by Gartner, the worldwide PC shipments in the first quarter of 2023 declined by 30% year over year, due to oversupply and low demand of PC, stiff competition and the lack of innovation and differentiation.
In first-quarter 2023, Apple’s market share declined by 34.2% year over year to 8.7%. Other players like Lenovo (LNVGY - Free Report) , HP (HPQ - Free Report) and Dell Technologies (DELL - Free Report) held a larger market share than Apple with 23.3%, 21.8% and 17.3%, respectively.
In second-quarter fiscal 2023, it recorded a decline of 4.6% year over year to $79.93 billion in its product sales. Non-iPhone revenues (iPad, Mac and Wearables) plunged 31.1% year-over-year on a combined basis.
However, shares of Apple have surged 48.1% year to date compared with the Zacks Computer – Mini Computers Industry’s 47.7% increase in the same time frame. The uptick was primarily due to strong product pipeline, increasing customer engagement and constant innovation.
It also outperformed Lenovo, HP and Dell whose shares increased 31.9%, 14.4% and 35.8%, year-to-date, respectively.
In June 2023, Apple joined the mixed reality space with the launch of Apple Vision Pro. It also announced the 15-inch MacBook Air, a new Mac Studio and Mac Pro. Moreover, Apple introduced iOS 17, watchOS 10, iPadOS 17 and macOS Sonoma.
What Awaits Apple’s Shares in the Rest of 2023?
Apple has been benefiting from significant product launches, which is expected to bolster its product revenues, contributing 78% of second-quarter fiscal 2023 revenues.
The growing adoption of services like Apple TV+, Apple Arcade, Apple News+, Apple Card and Apple Fitness+ drives Services revenue growth. The newly-announced App Store for Vision Pro is expected to further drive growth.
This Zacks Rank #3 (Hold) company expects its third-quarter fiscal 2023’s year-over-year revenue growth to be similar to that of the fiscal second-quarter levels due to an unfavourable forex of 4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Apple's third-quarter fiscal 2023 revenues has been pegged at $81.11 billion, indicating a year-over-year decline of 2.23%. Earnings estimates have remained unchanged at $1.18 in the past 30 days.