Apple Inc. is facing a new problem in China, where doing business can be tough for foreign companies. Shenzhen-based Baili has sued Apple for infringing the patent right of its smartphone. After a court ruling, Beijing Intellectual Property Office ordered the U.S. tech giant to stop selling its iPhone 6 and iPhone 6 Plus in the country. This was a surprising decision for the iPhone maker, which quickly made an appeal to a higher court. After the appeal company will be allowed to continue selling the iPhone 6 line until the court ruling, Fortune reported.
According to a report by Forbes, the Cupertino-based tech giant and its Chinese distributor Zhongfu Telecom were accused of copying the exterior design of Baili’s 100C smartphone.
The 100C phone is looks very similar to the iPhone 6, and there are minor differences between the iPhone 6 and the 100C. “The differences are so tiny that the average customer could not notice. So, this case falls into the patent rights protection category,” the ruling said.
The 100C were on sale in April 2014, while Apple offered its iPhone 6 and iPhone 6 Plus in the fall of 2014. The most interesting thing is the lawsuit doesn’t include the iPhone 6s or iPhone 6s Plus, which have the same design as the iPhone 6.
JPMorgan Cut Price Target On Apple Stock
Analysts at JPMorgan cut their Apple Watch estimates for fiscal 2016 to 11.9 million unit shipments from 23.5 million. The analysts see the wearable only penetrating 7% “of its addressable base by the end of 2017 vs. previous assumption of 15%.” The investment bank also reduced its price target on Apple shares to $105 from $125, CNBC reported.
Recently, Credit Suisse said that the iPhone 8 is likely to overshadow the company’s upcoming iPhone 7. Analyst Kulbinder Garcha said in a note that the iPhone 7 will prove to be a modest upgrade. He believes that the iPhone 8, however, would have significant innovations, and investor should buy Apple for the iPhone 8 “super cycle,” which could drive the company’s stock price more than 50% higher.
Investor seems to be worried about Apple Inc.’s growth. Early this year, billionaire investor Carl Icahn dumped his entire stake in Apple over China concerns. The Cupertino-based company reported its first-ever quarterly decline in iPhone sales and first revenue drop in 13 years in April. Talking to CNBC’s Squawk Box, the activist investor said “I would get back in if I felt more secure about China” and he thinks that CEO Tim Cook is “doing a good job.”
For the second quarter of fiscal year 2016, the company’s revenue declined since 2003. Revenue came in at $50.6 billion revenue, versus $58 billion revenue last year. The company posted a quarterly profit of $10.5 billion, down from $13.6 billion a year ago.
The company sold 51.2 million iPhones during the second quarter, versus 61.2 million in the same period a year ago. In China, the company’s most important market after the United States, sales were dropped by more than a quarter.
Shares of Apple Inc. have lost 9.1% year-to-date. The stock is currently trading around $97.