Why Apple shares lost 3% after hitting string of new all-time highs

“So much for ‘buy the rumor, sell the news,'” Evan Niu reports for The Motley Fool. “Apple has frequently been susceptible to rallying ahead of product announcements (“buy the rumor”) only to drop after said product is announced (‘sell the news’). Of course, the company is set to unveil the iPhone 5 on Wednesday.”

Yesterday, “the Mac maker’s shares closed down nearly $18, or almost 3%. Meanwhile, the broader market was relatively flat,” Niu reports. “What gives?”

Niu reports, “One very likely contributor to the pessimism even as we head into Apple’s most important product event of the year is a Bloomberg Businessweek report from Friday and further making its rounds today… Assuming the iPhone 5 sports 4G LTE, which is a safe assumption, rivals are already preparing to strike.”

“HTC has accused Cupertino of infringing two of its patents related to 4G LTE data transmission, purchased in April 2011, approximately when it started selling its first LTE-equipped phone, the HTC Thunderbolt. They were included in a bundle bought from ADC Telecommunications for $75 million,” Niu reports. “Apple has tried to invalidate these patents, but U.S. International Trade Commission Judge Thomas Pender feels confident of their validity. If the patents hold up, HTC could potentially go as far as to seek an import ban on the third-generation iPad, which also features 4G LTE, and the iPhone 5.”

Read more in the full article here.

MacDailyNews Take: Again, as we wrote yesterday, “We highly doubt that iPhones and iPads will be banned in the U.S. as a result of this case.”

Related articles:
Apple shares drop: iPhone 5 jitters setting in? – September 10, 2012
U.S. judge: HTC patents likely valid in Apple suit; U.S. ban of iPhone and iPad devices possible – September 10, 2012

17 Comments

    1. What’s the old saying? Sell on keynote rumor, sell on keynote news?

      With Apple, we could either be looking at $700 or $600 in a day or two. It could go either way depending on how the hedge funds feel. Don’t bother to look for any logical reasons because you’re not going to find any. We’re talking about a market where Apple is making money and the shares are dropping while Amazon is losing money and the shares are gaining. If you can make sense out of that then you’re far smarter than I am.

      1. All statements of why AAPL went up, or down, are bogus hit generators. To really know why, you’d have to query a significant number of buyers and sellers, in search of their individual motives for acting as they did, when they did.

    1. Right now HTC is claiming they are not FRAND, while Apple is claiming they are, plus Apple is trying to claim that HTC can’t assert the patents against Apple for a variety of legal reasons (including the lame “HTC just bought these patents to it could sue us,” which really doesn’t matter — infringement is infringement if it’s infringement).

  1. 1. HTC will never get iPhones and iPads banned in the U.S. If their patents are so key and important to LTE, then they fall under FRAND guidelines and HTC will be forced to license them to Apple under FRAND terms. And that’s fair.

    2. Profit taking. People are trying to take advantage of unexpected yearly highs right before the well-known dip in stock price after a new product is announced.

  2. AAPL was sold to build cash to buy 550 million shares of AGI from the United States of America. They have to get the money from somewhere and Apple stock is where the profit was and there is probably enough cash generated to buy AGI’s crap stock yesterday.

  3. Apple should just do a hostile takeover of HTC, add those patents to its own portfolio, then sell off the original HTC minus the patents. This whole LTE basket of patents is a joke… many companies (including Apple and a consortium of partners) own different critical patents used in the LTE standard, so if they all start suing each other, LTE couldn’t survive. Problem is, can a judge figure this out? I smell a clusterf*ck ahead…

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