Back in August Apple was crowing when they passed the $2 Trillion market value peg, now things are radically different with the iPhone Companies value pegged back by A$640 Billion following a 19% slump in value since that August milestone.
And to top that off Apple was told on Saturday to pay VirnetX Holding Corp. $714 million, in a decade-long saga over patents for secure communications.
A US jury took only 90 minutes to reach their verdict.
They were was asked to decide only how much Apple owes VirnetX in royalties for VPN on Demand, a feature that allows users access to virtual private networks. A
An appeals court had upheld an infringement finding regarding VPN on Demand.
Apple’s decision to not give any iPhone 12 sales guidance during its recent earnings call cost it $100 billion as many interpreted it as a potential slump in sales. Sales if iPhones in China were down 29 percent in the prior quarter.
A Big issue is the fact that the coronavirus pandemic delayed the production and release of the iPhone 12, which normally releases earlier in September, but this year did not hit stores until late October, meaning investors were unable to properly gauge how sales of the company’s first 5G iPhone are doing.
Despite mostly beating expectations across the board, Apple’s move to stay mum on the iPhone 12’s prospects had the stock down 5.4 percent Friday morning, at $109.09.
According to Bloomberg the latest bout of selling — a 5.6% drop on Saturday — took out more than A$170 billion alone. Apple’s now worth a mere $2.63 trillion and is still the most valuable U.S. company, but the amount shaved from its ledger since its September peak is more than the entire market cap of Visa, the seventh largest member of the S&P 500, and greater than the value of Thailand’s stock exchange.
Apple has slumped almost 19% since its highs in September and things are not looking good as archrival Samsung looks to be picking up the business lost by the bans on Huawei.
The slump and dumping by investors comes as the tech giant reported iPhone sales that missed analysts’ estimates and gave no forecast for the holiday quarter.
Fiscal fourth-quarter revenue from the iPhone was $26.4 billion, compared to expectations of $27.1 billion.
Under investigation by the US Federal Government Apple recently warned investors that the company’s financial results would be hurt if the amount paid from App Store downloads and subscriptions is reduced or eliminated.
The warning in a regulatory filing Friday came amid criticism from lawmakers and others about the cut of as much as 30% that Apple takes from third-party developers selling software through the App Store across the iPhone maker’s devices.
“If the rate of the commission that the company retains on such sales is reduced, or if it is otherwise narrowed in scope or eliminated, the company’s financial condition and operating results could be materially adversely affected,” Apple said in the filing with the Securities and Exchange Commission.
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