Apple Inc (AAPL) Loses Mexican ‘iPhone’ Trademark, May Be Forced to Share Sales

Apple Inc (NASDAQ:AAPL) is having another disappointing day on Wall Street today, flirting with the $580 mark for the first time since late July. While the bears will argue that iPhone 5 sales may be below expectations, shares of the tech giant are undervalued at the moment, making now a perfect time to buy on the dip, as traders say. We’ve already covered extensively how some of the world’s most successful money managers love Apple Inc (NASDAQ:AAPL), and believe that the smart money is making the most of the stock’s current selloff.

Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Barnes & Noble Inc. (BKS)

As we’ve displayed countless times before here on Insider Monkey, empirical studies have proven that individuals who mimic or “monkey,” insiders can beat the market by an average of seven percentage points a year. Using this phenomenon as a rule, it’s easy to see that Apple Inc (NASDAQ:AAPL) is without a doubt the best monkeying candidate at the moment. But don’t take our word for it, the Wall Street Journal’s MarketWatch recently did a special report on Insider Monkey’s Billionaire Hedge Fund Index, and Apple was at the top of their list too.

With that being said, no matter how attractive a stock may appear on paper, there are still near-term headwinds that can derail any potential for positive appreciation. Apple Inc (NASDAQ:AAPL) investors are likely sickened by the company’s Maps fiasco, or the negative publicity that its firing of two key executives earlier this week has received. Like it or not, Apple is the most widely-discussed company on the web today, and it will always be subject to chatter, despite its fundamentally cheap valuation.

Aside from rumors of iPad mini sales being below estimates, the chatter this afternoon is surrounding Apple Inc (NASDAQ:AAPL)’s loss of a key trademark in a Mexican court (18th District Appellate) concerning its “iPhone” brand. The court’s official ruling was that the name of Apple’s smartphone is exactly the same – phonetically speaking – as iFone, a telecom company with operations in Mexico and much of Latin America, in addition to Spain.

Interestingly, Apple Inc (NASDAQ:AAPL) did not own the iPhone trademark in the country when it released the smartphone in 2007, nearly four years after iFone received its trademark. The news comes as a pleasant surprise for iFone, which was originally sued by Apple Inc (NASDAQ:AAPL) in 2009, despite the fact that it held the trademark first. The victor’s legal team said that Apple owed iFone “sanctions up to the amount of 20,000 days of minimum wage,” and “no less than 40% of the sales of iPhone services in Mexico.”

While the former sanction isn’t a substantial amount of money, the latter can be material to Apple Inc (NASDAQ:AAPL). It should be noted that these figures come from iFone, and have not been verified by the tech giant, as of yet. According to its most recent financial statement, though, Apple Inc (NASDAQ:AAPL) made revenues of close to $60 billion in the Americas over the past year. It is unknown exactly how much of this total can be attributed to Mexico specifically, but it can be assumed that roughly half of this total is derived from iPhone sales, given historical norms.

We’ll leave the rest of the speculation up to the reader, but the payments could be significant. In case you were wondering why the stock has been down on Friday in the absence of any product-related news, it’s safe to say that Apple Inc (NASDAQ:AAPL)’s settlement with iFone could be the biggest “bear,” so to speak.

Let us know in the comments section if you think this is substantial to Apple Inc (NASDAQ:AAPL)’s fortunes, at least in terms of its massive multi-billion dollar cash hoard. Check back here for updates in case the company gives an official response.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!