Apple sold more than 5 million iPhone 5 in first three days

CUPERTINO, Calif., Mon Sep 24, 2012 – Apple Inc. sold more than 5 million iPhone 5 smartphones in the three days after the new device hit the marketplace on Sept. 21, the company said on Monday.

Apple said it sold out its initial supply of iPhone 5s, as demand for its latest smartphone exceeded initial supply.

While the majority of pre-orders have been shipped to customers, many are scheduled to go out in October, Apple said.

Samsung to add iPhone 5 to U.S. lawsuits vs. Apple

SAN FRANCISCO, Thu Sep 20, 2012 – Samsung Electronics Co said on Thursday it planned to add Apple’s iPhone 5 to its existing patent lawsuits against the U.S. rival, a move that could lead to a preliminary sales injunction of the popular smartphone.

The fresh legal step by the South Korean firm comes as Apple booked orders for over two million iPhone 5 models in the first 24 hours and the model hits store shelves on Friday.

Samsung and Apple are locked in global patent battle in 10 countries and the stakes are high as the two technology giants vie for the top spot in the booming smartphone market.

Both companies are also aggressively raising marketing spending to promote their latest products ahead of the crucial year-end holiday season.

“Samsung anticipates that it will file, in the near future, a motion to amend its infringement contentions to add the iPhone 5 as an accused product,” it said in a U.S. court filing.

“Based on information currently available, Samsung expects that the iPhone 5 will infringe the asserted Samsung patents-in-suit in the same way as the other accused iPhone models.”

New iPhone boosts forecasts for Apple smartphone sales

SAN FRANCISCO, Thu Sep 13, 2012 – Sales of Apple Inc.’s new iPhone 5 may be double those of the previous model in its first week on the market, and up to 33 million iPhones may be sold this quarter, brokerage houses forecast on Thursday.

Many expressed surprise at how quickly Apple planned to roll out the new model around the world, saying this suggested it would be able to keep up with demand for a bigger, faster and slimmer iPhone, which goes on sale this Friday.

Several analysts raised forecasts for Apple’s share price by as much as $60, to between $750 and $820. The stock closed at$669.79 on Wednesday.

“We are positively surprised that this iPhone rollout is Apple’s fastest yet,” Barclays Equity Research said in a note to clients.

Apple will continue to win sales with older models, brokerage William Blair & Co added.

“The iPhone 4 will be sold for free after subsidies, replacing the 3GS and providing a strong product to compete in the high-growth, low-end smartphone market,” William Blair said.

The brokerage raised its sales forecast for all iPhone models by 29 percent to 33 million for the July-September quarter, at the top of forecasts that ranged from about 20 million to about 30 million in brokerage notes seen by Reuters.

RBC Capital Markets said it expected Apple to ship 8 million to 10 million of the new models by the end of the month.

The brokerage said this could result in additional sales of $4 billion to $5 billion for the period. It increased its price target for the stock by $50 to $750.

The iPhone 5 sports a 4-inch “retina” display screen, can run on high-speed 4G LTE wireless networks and is 20 percent lighter than the previous iPhone 4S.

It ships on Sept. 21 in the United States, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and Britain and will hit 100 countries by the end of the year in the fastest international rollout for an iPhone so far.

Barclays noted the rapid rollout as it increased its price target for Apple stock to $810 from $750.

Robert W. Baird & Co, which also raised its price target on the stock, now expects Apple to sell 24.4 million iPhones in the September quarter, up from its earlier estimate of 21.2 million.

Apple’s iPhone needs to dazzle as market gets crowded

SAN FRANCISCO, Wed Sep 12, 2012 – The new iPhone 5 has to be more than just another smartphone as it carries the weight of Apple Inc.’s future on its slim frame.

Five years after the first iPhone upended the mobile industry, analysts say Apple is looking increasingly defensive as Samsung Electronics Co Ltd and other rivals have been first to market with phones that sport bigger screens or run on faster wireless networks.

Apple will try to close that gap on Wednesday with the unveiling of the newest iPhone, which is widely expected to offer 4G wireless technology for the first time, and a 4-inch display, up from the current 3.5 inches.

But it remains to be seen if CEO Tim Cook has any surprises up his sleeve, and if he will show off any technological breakthroughs that can put the iPhone 5 head and shoulders above the competition.

“They have been in the crosshairs of a lot of companies for a long, long time,” Sterne Agee analyst Shaw Wu said.

“They were the upstarts before,” he added. “Now they are more in a defensive role.”

Apple shares typically rally ahead of, and sell off after, a major product launch. They have gained 15 percent in the past six weeks to touch an all-time high on Monday.

Apple has grappled with competitive pressure since the first iPhone in 2007, though its rivals have changed as former market leaders such as Canada’s Research in Motion or Finland’s Nokia struggle, and as Asian powerhouse Samsung has come to the fore.

While no one company has yet been able to match Apple’s seamless integration of hardware and software, Google Inc’s Android has become the most-used mobile operating system in the world, and Samsung has the lead in device sales.

Wednesday’s iPhone 5 launch also comes days after Nokia unwrapped its first phone to run the latest Microsoft Windows software, intended to spearhead a new family of devices.

“It is getting tougher to expand the market share,” Gartner Research analyst Carolina Milanesi said.

The iPhone contributes half of Apple’s revenue and the majority of its profit, so Cook needs to dazzle both Wall Street and consumers. He is praised for having sustained Apple’s breakneck pace of growth since taking over last year, but the jury is still out on whether he has the innovation and marketing genius of the late Steve Jobs in the long run, analysts said.

Weekly options are implying about a 3 percent move for shares up or down between Monday and the close of trading Friday, a marginal fluctuation, said TD Ameritrade chief strategist J.J. Kinahan.

Even though few tech experts expect the new iPhone to mark a sea change in smartphone hardware technology, Wall Street analysts are still expecting Apple to sell 10 million to 12 million phones in September alone.

Pandora shares down 14 percent on reports of rival Apple service

OAKLAND, Calif., Fri Sep 7, 2012 – Shares of Pandora Media Inc. fell 14 percent in premarket trading on Friday following media reports that Apple Inc. was in talks to license music for a radio service like the one Pandora operates.

The Wall Street Journal, citing people familiar with the matter, reported that Apple wants to license music for a custom-radio service that would work on its hardware, such as the iPhone, iPads and Mac computers, in a bid to expand its dominance in online music. Apple’s iTunes is the largest music retailer.

Apple’s service would likely be a preinstalled “app” on Apple devices, the New York Times reported.

Pandora shares were down $1.77 in premarket trading from their closing price on Thursday of $10.80

Apple initiated talks for a license with record companies only recently, the Journal reported, and it could be months before a service is launched.

An Apple representative did not immediately respond to an email seeking comment.

Like Pandora, which competes against Clear Channel, Sirius XM Radio and Spotify, Apple’s service would intersperse music with ads, the Journal reported.

Last week, Pandora reported better-than expected quarterly results on higher advertising revenue as more people listened to music on their mobile devices, and the company raised its full-year revenue outlook.

With Samsung win on Galaxy Tab, judge may reconsider U.S. ban

RIDGEFIELD PARK, N.J., Mon Aug 27, 2012 – Apple Inc.’s legal victory on Friday over Korean rival Samsung Electronics Co. Ltd. was crushing but for one key front in its global smartphone and tablet patent war: Samsung’s Galaxy Tab 10.1.

The jury in the San Jose, California, federal court awarded the iPhone and iPad maker $1.05 billion in damages and said Samsung had copied critical features in the U.S. company’s products.

However, it declined to side with Apple on one patent, covering design elements on the iPad. That put the jury directly at odds with the judge in the case who, only two months earlier, had sided with Apple over allegations the Galaxy Tab 10.1 tablet ripped off Apple’s design.

U.S. District Judge Lucy Koh issued a pre-trial order barring Samsung from selling the Galaxy Tab 10.1 in the United States.

Late on Sunday, Samsung asked Koh to dissolve the order, due to the jury’s finding. “There is thus no proper basis for maintaining the injunction,” Samsung attorneys wrote.

An Apple representative could not be reached immediately for comment.

Samsung’s Galaxy touch screen tablets, powered by Google’s Android operating system, are considered by some industry experts to be the main rival among larger tablets to the iPad, although they are currently a distant second in salesto Apple’s device.

Apple, Samsung launch salvos as smartphone trial heats up

SAN JOSE, Calif. Tue Jul 31, 2012 – Samsung Electronics Co Ltd told jurors that its products are not copycats of Apple Inc.’s iPhone but rather an example of legitimate American-style competition from the South Korean company.
Lawyers for both tech giants faced off on Tuesday for opening statements in the highly anticipated U.S. patent trial, where Apple has accused Samsung of stealing iPhone features like scrolling and multi-touch.
The stakes are high: Apple is being tested on its worldwide patent strategy against Google’s Android operating system, while Samsung faces the threat of sales bans on its Galaxy line of phones and tablets.
Apple attorney Harold McElhinny said Samsung’s own internal product analyses show it deliberately chose to rip off the iPhone, but Samsung lawyer Charles Verhoeven said all companies produce such documents.
“It’s called competition,” Verhoeven said. “That’s what we do in America.”
The world’s largest consumer electronics corporations have been waging legal war around the world, accusing each other of patent violations as they vie for supremacy in a fast-growing market for mobile devices. They sell over half of the world’s smartphones.
The legal fight began last year when Apple sued Samsung in federal court, accusing the South Korean company of slavishly copying the iPhone and iPad. Samsung countersued.
The federal courtroom here was jammed on Tuesday with lawyers and reporters, with more spilling into an overflow room next door equipped with a video feed. Both companies relied on slides featuring various phone models, internal emails and news reports to make their points.

Apple, Samsung patent trial set to kick off in U.S., billions at stake

SAN JOSE, Calif., Mon Jul 30, 2012 – Jury selection is due to begin on Monday in the United States in a high stakes patent battle between Apple Inc. and Samsung Electronics Co. Ltd., the culmination of over a year of pretrial jousting with billions of dollars in the balance.
Apple and Samsung, the world’s largest consumer electronics corporations, are waging legal war around the world, accusing each other of patent violations as they vie for supremacy in a fast-growing market for mobile devices.
The fight began last year when Apple sued Samsung in a San Jose, Calif., federal court, accusing the South Korean company of slavishly copying the iPhone and iPad. Samsung countersued.
The stakes are high, with Samsung facing potential U.S. sales bans of its Galaxy smartphones and tablet computers, and Apple in a pivotal test of its worldwide patent litigation strategy.
Apple will try to use Samsung documents to show its rival knowingly violated the iPhone maker’s intellectual property rights, while Samsung argues Apple is trying to stifle competition to maintain “exorbitant” profit, according to court filings.
A 10-member jury will hear evidence over at least four weeks, and it must reach a unanimous decision for Apple or Samsung to prevail on any of their claims.

Apple to buy fingerprint sensor maker AuthenTec for $356 million

SAN FRANCISCO, Fri Jul 27, 2012 – Apple Inc. has agreed to buy AuthenTec Inc. for $8 per share, the maker of fingerprint sensor chips used in personal computers said, in a deal valued at about $356 million.
AuthenTec makes security software and chips for mobile phones that it licenses to companies such as Samsung Electronics Co. Ltd. It also produces chips for fingerprint recognition and near-field communication.
Melbourne, Fla.-based Authentec disclosed the deal in a filing with the U.S. Securities and Exchange Commission.
Based on Thursday’s closing price $5.07, the offer represents a premium of 58 percent for AuthenTec’s shares.
AuthenTec, which also counts Lenovo Group Ltd., Fujitsu Ltd. and Dell Inc. as customers, has annual revenue of about $70 million.

Apple says Samsung patent royalty demands unfair

SAN FRANCISCO, Wed Jul 25, 2012 – Apple Inc. said Samsung Electronics Co. Ltd. is demanding from the iPhone maker a far higher patent royalty than it pays to other licensers, at a rate the South Korean company has never sought from any other licensee.
Samsung is demanding a 2.4 percent rate on the “entire selling price” of Apple’s mobile products, the Palo Alto, California-based company said in a U.S. court filing on Wednesday. The information was contained in freshly unsealed portions of a legal brief in a high profile patent lawsuit between the two companies.
“Samsung’s royalty demands are multiple times more than Apple has paid any other patentees for licenses to their declared-essential patent portfolios,” Apple said in the documents.
However, Samsung said in a separate filing on Wednesday that its offer “is consistent with the royalty rates other companies charge” and that Apple never made a counter offer.
“Instead, it simply rejected Samsung’s opening offer, refused to negotiate further and to this day has not paid Samsung a dime for Apple‘s use of Samsung’s standards-essential technology,” Samsung said.
The legal filings do not disclose the rate Apple pays to other companies for standard essential patents. These are patents which Samsung has agreed to license to competitors on fair and reasonable terms, in exchange for having the technology be adopted as an industry standard.
In a court filing on Tuesday, Apple had said it should pay one-half of 1 cent per unit for each infringed standard essential patent.
Apple and Samsung, the world’s largest consumer electronics corporations, are waging legal war around the world, accusing each other of patent violations as they vie for supremacy in a fast-growing market for mobile devices.