This Day On The Street
Continue to site
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

Documents Show iPhone Competition Worries Apple

NEW YORK ( TheStreet) -- Newly released documents from the second Apple (AAPL - Get Report) 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 - Get Report), 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
GOOG $523.40 0.00%
FB $87.28 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs