Apple Recap: Leap’s Pain, New Executive Rule, Samsung’s Loss
Apple (NASDAQ:AAPL) shed 0.71 percent on Thursday to end at $441.40. Here is a cheat sheet to the top stories surrounding the stock on the day:
Leap’s iPhone Pain
A partnership with Apple is not serving Leap Wireless (NASDAQ:LEAP) as well as the operator would have hoped. Leap, whose prepaid service Cricket started carrying the iPhone in June last year, said in a securities filing that it only expected to sell about half the devices it committed to in the first year of its agreement with Apple. Leap said it could end up with $100 million worth of unsold iPhones by June, though it added that it was working to improve sales with marketing and financing options for buyers.
Leap spokesman Gregory Lund said the company was in discussions with Apple. Lund said Leap had also seen lower-than-expected overall customer additions in the fourth quarter. The news would also be an upsetting one for Apple, which has been dealing with its own concerns over slowed iPhone sales… (Read more)
New Company Rule
Apple executives must hold triple their base salary in company stock, according to a new rule the iPhone maker introduced earlier this month and was detailed in a corporate governance notice on its website. The requirement was implemented on February 6. Executive officers will have five years to satisfy the requirement. The company’s chief executive officer would have to hold 10 times the annual base salary, while board directors would need to hold five times their annual retainer. The rule is extremely interesting because the company recommended investors oppose a very similar measure proposed by an individual shareholder at the annual meeting this week… (Read more)
Tokyo Win for Apple
Apple can keep selling its iPhones and iPads in Japan after a Tokyo court ruled in its favor in a 2011 patent lawsuit filed by rival Samsung (SSNLF.PK). In what is the latest of several stages and rounds in the global patent-infringement battle between the two competitors, the Korean company had tried to get an injunction on several Apple products by citing violation of patented data transmission technology. However, the Tokyo District Court rejected the request after ruling that Samsung had not tried “sincerely” enough to try and negotiate a licensing deal with the iPhone maker for the patents in question… (Read more)
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