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!

Documents Show iPhone Competition Worries Apple

Stocks in this article: AAPL GOOG MSFT

NEW YORK ( TheStreet) -- Newly released documents from the second Apple (AAPL) vs. Samsung trial show a somewhat less confident Apple worried about the competition and underestimating the appeal of both larger and also less-expensive smartphones.

According to a report from R e/code, internal Apple slides from a presentation one year ago describe research showing both a slower rate of growth for iPhone sales as opposed to higher growth rates for cheaper handsets as well as larger devices (larger than current iPhone with 4-inch screens). The slide is bluntly titled "Consumers want what we don't have."

Apple was off 0.53% to $528.97 in early New York trading on Monday.

The slide goes on to admit there were other reasons for Apple to worry including growing problems with mobile carriers. Apple said those service providers had a "strong interest" in capping iPhone sales for a number of reasons especially the inability of service providers to add potentially lucrative "bloatware" to iOS handsets.

The slide also stated that the competition was starting to produce "drastically improved" smartphones as well as some Android phone makers spending "obscene" amounts on advertising.

In another document, an email dated Oct 24, 2010, then-Apple CEO Steve Jobs, writing to marketing vice president Phil Schiller, said that in 2011 Apple would wage a "Holy War with Google"  (GOOG), the creator of the Android operating system.

The document is labeled "Highly Confidential - Attorneys Eyes Only."

Jobs admitted that his company had to continue to innovate because he thought the company was "in danger of hanging on to old paradigm (personal computers as a consumer's primary device) too long." He also believed "Google and Microsoft (MSFT) were further along on the technology, but haven't quite figured it out yet.

He also had big plans for the company's Apple TV box. An innovative product, Apple TV stagnated after its original release. But Jobs had some big ideas for the device including subscriptions, content from "NBCCBS, Viacom, HBO ..." as well as "apps, browser" and a "magic wand" similar to what has evolved in current products from Roku, Amazon, Google and others.

These newly released documents were provided by Samsung.

Round two of the Apple vs. Samsung saga began last week in the federal courthouse in San Jose, Calif. Apple has sued Samsung for $2 billion, accusing the Korean company of infringing on software patents developed for the iPhone.

The battle has been raging since August 2010 when Apple requested that Samsung, a major supplier of parts and "trusted partner" for the iPhone, agree to sit down and discuss Apple's claims of patent infringement.

The first trial began in July 2012. A month later, after three days of deliberation, the jury decided in Apple's favor and awarded the company more than $1 billion in damages. A few months later, Judge Koh recalculated the jury's award and invalidated nearly half ($450 million).

-- Written by Gary Krakow in New York.

To submit a news tip, send an email to tips@thestreet.com.

Gary Krakow is TheStreet's Senior Technology Correspondent.

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 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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