Why Apple (NASDAQ:AAPL) Had Such A Great Friday
Apple Inc. (NASDAQ:AAPL) Apple had an incredible day on Friday following two pieces of news. First and foremost, a lawsuit finally came to an end in Apples favor. Also, a new initiative was rolled out by the company. Between the two, Friday proved to be one of the best days weve seen on the stock in quite some time. Today, well discuss both stories as well as what we can expect to see from AAPL moving forward. So, lets get right to it
Apple Wins A Lawsuit Against Samsung
There has been a long standing feud between Apple and Samsung Electronics Co. (SSNLF) that began in 2011. In that year, Apple took Samsung to court for patent infringement with regard to several smartphone patents. The patents revolved around features like multi touch and tap to zoom. This long standing legal battle finally came to an end on Friday when SSNLF finally made the decision to settle with AAPL. The settlement came in the amount of $548 million. According to court documents associated with the case, the $548 million is expected to be paid in full to Apple by no later than December 14th.
Apple Launches A New Initiative In Russia
Another piece of news causing investor excitement around Apple at the moment is the fact that it has launched a new initiative in Russia. The new initiative is a mobile payments plan that allows IOS users in the region the ability to purchase digital content including apps, books, movies and music without using their credit cards. The new system allows users to enter their phone number to purchase the digital goods. From there, the cost of the digital goods will be added to the customers monthly bill. This is something that weve seen from AAPL and other mobile phone providers in the past. From what weve seen in the past, we know that this feature generally increases sales as consumers are more likely to purchase goods using their phone number than they are to purchase the goods using their credit cards.
What We Saw In The Market As A Result
As weve come to expect any time we see positive news with regard to a publicly traded company, Apple climbed in the market following the release of the stories. On Friday, AAPL climbed in the market, closing the day off at $119.03 per share after a gain of 3.32% on the trading session.
What We Can Expect To See From AAPL Moving Forward
Moving forward, I have a bit of a mixed opinion with regard to what we can expect to see from Apple. While the fact that the company won the suit against Samsung for Patent infringement is a good thing, its only a short term positive. Also, I can imagine their movements in Russia being positive. However, the company also has a few areas that are building investor concern. Most importantly, it was recently announced by Credit Suisse that Apples iPhone orders are likely lower than expected. Because the iPhone is the companys flagship product, this raises major concerns with regard to what we can expect with regard to revenue and earnings over the next couple of quarters. With that said, if I had AAPL shares at the moment, I would hold them, but I would suggest buying any shares at the moment. What Do You Think? Where do you think AAPL is headed and why? Let us know your opinion in the comments below! [Image Courtesy of Flickr]
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