Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Apple Inc. (AAPL)’s iPhone Illegal?

Page 1 of 2

The U.S. International Trade Commission (ITC) just ruled that Apple Inc. (NASDAQ:AAPL) will not be able to import some of its older products intended for use on the AT&T Inc. (NYSE:T) wireless network. Some of the affected products include the iPhone 4 and iPad 2.

The ITC indicated that Apple violated patents held by the South Korean electronics giant Samsung Electronics. The ban won’t affect sales of Apple’s latest model smartphone iPhone 5, the new iPad, or earlier models of its products used on other networks.

President Obama can reverse the ruling within the next 60 days. He has disagreed with similar ITC bans in the past and has urged Congress to reduce the power of the commission.

Apple Inc. (NASDAQ:AAPL)

Will the ruling take a bite out of Apple?

It could result in a short-term drop in the stock price (these sorts of things usually do), and it will generate a lot of chatter in the blogosphere, but it probably won’t affect the fundamentals all that much.

Apple Inc. (NASDAQ:AAPL) stock can’t take much more stress. It has been battered due to competition from Samsung and others, and its once-lofty market share and high gross margins are slipping. Earnings in the January to March period declined for the first time in many years.

The company has responded by raising its dividend and announcing an enhanced stock buyback program, going so far as to issue debt to do so. Apple might be in that transition from high growth to stalwart.

Will Ma Bell be affected?

AT&T Inc. (NYSE:Thas seen a run-up in its stock price over the last 18 months. Will the ruling derail it?

The company actually gives the iPhone 4 away for next to nothing if the buyer signs up for a two year service contract. With two far more advanced models available, most users opt for more capability anyway.

My thought is that AT&T Inc. (NYSE:T) won’t be impacted by the ITC ban but could be by a rise in interest rates. If the Fed ends its quantitative easing program and rates go high enough investors might want to retreat to “safer” government securities.

AT&T stock currently yields about 5.1%. The 10-year T-bond yields around 2.1% right now. There’s still a relatively wide spread. The stock is probably a better deal for someone who’s looking for income today.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!