The investors of Apple Inc. (NASDAQ:AAPL) displayed an unusual calmness on the latest challenge confronting the tech giant that would negatively affect one third of its sales. Despite the possibility that some of the products of the tech giant will be banned for sale or import, its investors stopped briefly a large sell-off in the shares of the company on Wednesday.
The United States International Trade Commission (ITC) ruled that Apple Inc. (NASDAQ:AAPL) breached the patent of Samsung Electronics Co. Ltd (LON:BC94) (KSE:0053930) to the technology that enables devices to send multiple information or services simultaneously through a 3G wireless network.
The federal agency ordered Apple Inc. (NASDAQ:AAPL) to stop sale or import of some of the older models of its products including the iPhone 4, iPhone 3GS, iPad 3G, iPad 2 3G, and the iPad distributed by AT&T Inc (NYSE:T), the largest seller of the tech giant’s mobile devices in the United States.
The latest products of Apple Inc (NASDAQ:AAPL) such as the iPhone 5 and the fourth generation iPad were not affected by the ITC ruling.
A court of appeals or a presidential veto can reverse the decision of the ITC. President Barack Obama has 60 days to review the ruling of the federal agency. The ban on the specified products of Apple Inc. (NASDAQ:AAPL) will take effect if the President does not reject the decision of the ITC.
The iPhone and iPad maker already expressed that it will dispute the decision of the ITC to a court of appeals, which kept the company’s investors from panicking. Kristin Huguet, spokesperson for Apple Inc. (NASDAQ:AAPL) said, “We are disappointed that the commission has overturned an earlier ruling and we plan to appeal. Today’s decision has no impact on the availability of Apple products in the United States.”
Apple Inc. (NASDAQ:AAPL) has a separate patent complaint against Samsung Electronics Co. Ltd (LON:BC94) (KSE:005930). In April, a preliminary ruling issued by the ITC indicated that the South Korean electronics manufacturer infringed a major portion of Apple’s patent related to the text-selection feature in smartphones and tablets. The agency found that Samsung did not violate a second patent that enables a device to detect if a microphone or any other device is connected to its microphone jack. ITC is expected to release its final ruling on the case in August. The agency could ban the sale of Samsung products in the U.S. if it upholds its ruling.
The patent fight between the two companies is complicated and messy, and observers believe that Apple Inc. (NASDAQ:AAPL) and Samsung might end up settling the complaints.
The stock price of Apple Inc. (NASDAQ:AAPL) slightly changed on Thursday. The stock opened at $445.24 per share and closed at $445.11 per share. Apple Inc. (NASDAQ:AAPL)’s stock declined significantly from its peak price at around $705 per share over the 52-week range.
