This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple and The Curious iPhone, iPad 'Ban'

Stocks in this article: AAPL GOOG

NEW YORK ( TheStreet) -- Apple (AAPL) received a bit of a reprieve over the weekend from an unlikely source: President Barack Obama.

President Obama's trade representatives on Saturday vetoed an International Trade Commission ban on the iPhone 4 and iPad 2. The move impacted Samsung, costing the South Korean giant $1 billion in market cap in South Korean trading.

U.S. Trade Representative Michael Froman said the International Trade Commission overstepped its boundaries, and the ban gave Samsung "undue leverage" when it comes to rivals using standard technology.

The ban could have materially impacted revenue for Apple's fiscal fourth quarter, not something the tech giant needs given the negative sentiment on Wall Street right now. Analysts are expecting Apple to generate $7.66 a share in earnings on $36.13 billion in revenue. If the ban was not vetoed, perhaps we would have seen estimate cuts from analysts. Now that the ban has been vetoed, perhaps we see estimate raises from Wall Street analysts.

This is just the latest in the patent battle between Apple and Samsung. Having Obama at the back of Apple, however, could wind up becoming an issue between the U.S. and South Korean governments, which may get even uglier than the patent dispute between the two companies.

The South Korean government has already issued a statement expressing concern with the decision to veto the import ban, further adding fuel to this already blazing fire. Next up is the International Trade Commission's decision whether or not to ban certain models of the Samsung Galaxy following an earlier win by Apple which said that Samsung infringed on certain Apple patents. The South Korean government said it hopes "to see a fair and reasonable decision on the matter."

Apple was originally awarded $1.05 billion in damages from the courts thanks to the ruling.

Samsung uses Google's (GOOG) Android operating system, and has overtaken Apple as the top smartphone seller according to IDC. It owned 41.1% of the market as of the end of the first-quarter, compared to 17.3% for Apple and its mobile operating system, iOS.

Samsung is free to continue pursuing the patent rights through the courts, but for now, it's a blow for Samsung, and a coup for Apple.

Apple shares were higher in pre-market trading, up 0.66%‎ to $465.60.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs