Key Stats for Apple Stock
- Price change for Apple stock in last 6 months: 38%
- $AAPL Stock Price as of Sep. 25: $341
- 52-Week High: $345
- $AAPL Stock Price Target: $328
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What Happened?
A federal jury in San Diego ordered Apple (AAPL) to pay Taction Technology more than $5.7 billion in damages on Friday.
The jury found that Apple infringed claims from two of Taction’s haptics patents.
Haptics is the technology behind the small vibrations you feel when a device responds to your touch.
Taction argued that Apple’s Taptic Engine, which is built into iPhones and Apple Watches, uses its inventions without a license.
The case has been running for years. Taction sued in 2021. Apple won a dismissal in 2023, but the Federal Circuit later revived the case.
The trial began Sept. 14, and seven jurors deliberated for two days before reaching a verdict.
Apple pushed back hard. The company said the damages are “entirely unsupported by the facts” and that its Taptic Engine is fundamentally different from Taction’s technology.
Apple also said it will appeal.
Apple had one small win. The jury did not find the infringement willful.
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What the Market Is Telling Us About Apple Stock
The headline number is big, but Apple stock investors need context.
In its June quarter alone, Apple earned $29.8 billion in net income. That means the $5.7 billion award equals less than a fifth of one quarter’s profit.
Apple also ended the quarter with $147 billion in cash and marketable securities.
So the verdict is unlikely to hurt Apple’s finances much. And with an appeal coming, the final amount could change.
The bigger focus for Apple stock is still the core business.
- Revenue hit a June quarter record of $109.4 billion, up 16% from a year ago.
- iPhone revenue jumped 22% to $54.3 billion.
- Wearables, Home and Accessories, which includes Apple Watch, grew 6% to $7.9 billion.
Other issues are on investors’ radar, too.
Apple expects growth to slow to 9% to 11% in the September quarter due to supply constraints and currency headwinds.
Rising memory costs are also squeezing margins. The company is also going through a CEO change, with John Ternus taking over from Tim Cook.
For long-term Apple stock holders, this verdict looks more like a legal headline than a threat to the business.
Still, it adds one more item to watch as the appeal plays out.
How Apple stock reacts may depend more on supply and margins than on this case.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
