“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.”
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