Thursday , August 5 2021

Apple falls hard after knowing it will not be able to sell handsets in China By Investing.com



© Reuters. Apple collapses after knowing that it will not be able to sell devices in China

Investing.com – Apple (NASDAQ 🙂 falls on Wall Street 2% after Qualcomm (NASDAQ 🙂 has explained in a statement that won a preliminary order of a Chinese court banning the importation and sale of various models of the US company.

The request, which comes from the Fuzhou Intermediate People's Court, is not very new to Apple, since in the early years it imposed a ban on Micron memory chips (NASDAQ 🙂 Technology for China.

According to the judge in charge of issuing the request, Apple violated two of Qualcomm's software patents to resize photos and manage applications on a touch screen.

In the statement issued by Qualcomm, it is stated that "Apple continues to benefit of our intellectual property, refusing to compensate us. "

However, Apple could continue to sell phones. In the order that left the Chinese court is indicated that the American company could make changes in its software to avoid patents and keep selling your phones.

The iPhone-specific models affected by the preliminary ruling in China are the iPhone 6S, the iPhone 6S Plus, the iPhone 7, the iPhone 7 Plus, the iPhone 8, the iPhone 8 Plus and the iPhone X.

Citi is prepared with Apple

The bad news, they say, never comes alone. Before Qualcomm released the text clarifying the court's decision, the technology company had already received a jug of cold water.

Citi analysts stopped trusting Apple and reduced its target price at $ 200 per share for the 240 on which it was previously encrypted. First, they point out that "trade wars are bad for technological actions."

While they believe that Apple does not lose its sales orientation and that "China does not impose additional tariffs"I hope "the consensus is closer to our reduced estimates in the coming weeks, as the Asian country accounts for 18% of total sales."

In addition, Citi analysts wonder how much the stock may fall. Experts believe they may fall to $ 125 if "income growth is reduced between 2% and 3% worldwide. "

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