Apple Recap: Second Lawsuit, iPhone Woes, Mac Discounts
Apple (NASDAQ:AAPL) managed to give up the small gains it made earlier in the trading day by closing just about 0.2 percent down at $467.01 on Wednesday. While the stock was up early presumably due to news that the company had a 100-strong team working on a new wristwatch-like product, a few setbacks later on erased the optimism. Here is a cheat sheet to the top stories related to the stock on the day:
Chief executive Tim Cook may consider Greenlight Capital’s lawsuit against Apple nothing more than an unnecessary distraction, but it appears the company will have to deal with two of those in the run-up to its annual meeting on February 27. A second investor filed a lawsuit against the iPhone maker on Wednesday, citing concerns similar to those mentioned by David Einhorn’s Greenlight hedge fund.
Brian Gralnick of Elkins Park, Pennsylvania, who has been an Apple shareholder since 2007, filed the suit with the U.S. District Court in New York in an attempt to block the company from voting on two proposals at its meeting. Arnold Gershon, a lawyer for Gralnick, said the investor will try and be heard during the scheduled February 19 hearing of Einhorn’s lawsuit. “The case has some overlap with the Einhorn case, but it is a broader case,” Gershon said… (Read more)
Trademark Woes in Brazil
Apple has now officially lost the right to use the iPhone name to sell its smartphone in Brazil, with regulators deciding to honor an earlier awarding of the trademark to a local tech firm. Apple’s request to be able to keep using the name was rejected by the Brazilian Institute for Industrial Property on Wednesday. The right instead went to IGB Eletrônica SA, a Brazilian electronics maker that since December has been selling a smartphone running on Google’s (NASDAQ:GOOG) Android operating system under the iPhone name. IGB’s Gradiente SA unit had applied to register the name in 2000, while Apple launched the first version of its smartphone in the U.S. in 2007… (Read more)
With the personal computer market increasingly squeezed by the arrival of tablets, Apple has decided to start wooing Mac customers with an aggressive pricing strategy. The company introduced slight upgrades to its MacBook line on Wednesday, and alongside, announced that it was dropping prices of several of its notebooks. Worldwide PC shipments are falling in the face of the rising popularity of tablets. Apple, while benefitting from the rise of tablets, also reported a steep decline in Mac sales in the holiday quarter. The company sold 4.1 million Macs in the December quarter, down 21 percent from a year earlier… (Read more)
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