Apple Inc., Company’s History Apple Inc was founded in 1976 by Steve Jobs and Steve Wozniak in a place known as Cupertino, California. One of the most incredible and successful inventions was the Apple II, a home computer. This computer included a TV display and color screen. Apple took off when the iPod was first introduced in 2001. In 2003, Apple became an international company by opening a new location in Tokyo, Japan. Apple Inc changed how the world communicates and entertains through its products. Steve Jobs passed away in 2011 at the age of 56, deeply impacting the technology industry. Today, Apple has over 400 retail stores distributed among 19 countries. Lawsuit In 2016, the California Institute of Technology (CalTech) filed a lawsuit against Apple and Broadcom for unauthorized use of CalTech’s Wi-Fi-related patents in Apple’s iPads, Watches, Mac computers, HomePod, and iPhones. Over the last decade, Apple has dodged verdicts for controlling digital content, microprocessor technology, and document display lawsuits. Patent lawsuits usually go unnoticed; however, this lawsuit is in the top six biggest money-related lawsuits in history. Apple Inc is one of the world’s leading companies with sales revenue of $265.6 billion dollars in 2018. iPhones sales generated 82% of the company’s revenue. Apple has sold over 218 million units of iPhones during 2018, which was a 40% increase from the units sold in 2013. Apple Inc. has won 35.8% of the smartwatch market, beating Samsung’s 11.1% share, and the company has sold over 4 million units of iPads during 2018. Broadcom is one of Apple’s major suppliers since they signed a $15 billion contract for RF components used for their newly developed products over the next three years. Currently, Apple is using Broadcom parts for the iPhone 11. After finalizing the contract, Broadcom’s stock price increased by 3% from $319.65 to $330.10 per share. 25% of last year’s Broadcom revenue came from contracting with Apple Inc. The court ruled that both companies must pay a total amount of $1.1 billion in damages to CalTech. This technology was found in the chip that Broadcom created for Apple Inc. Neither company was licensed to use this patent; therefore, they both owed millions if not billions of dollars to CalTech. Apple Inc must pay $838 million while Broadcom was ordered to pay $270 million to CalTech. This lawsuit is less than 1% of the generated revenue of 2018. Apple and Broadcom are planning to appeal the verdict. Apple and the Coronavirus More than 360 lives have been lost due to the Coronavirus and over 17,000 people currently have the virus across the world. Due to fast transportation, the virus has reached many other countries, including the United States. Apple has many stores and factories in China, some are in Wuhan, which is the city where the virus was first found. Apple has temporarily closed 42 of its stores in China and reduced the hours of operations at many other locations until February 9th. They are currently working on a plan to make up for the loss of suppliers and personnel. Currently, Apple is looking at a 10% decrease in phone shipment due to the outbreak for this first quarter. Apple could see a loss between $2 to $4 billion in revenue. A. What was the verdict? B. What impact on global business has Apple had by closing stores around the world
Apple Inc., Company’s History
Apple Inc was founded in 1976 by Steve Jobs and Steve Wozniak in a place known as Cupertino, California. One of the most incredible and successful inventions was the Apple II, a home computer. This computer included a TV display and color screen. Apple took off when the iPod was first introduced in 2001.
In 2003, Apple became an international company by opening a new location in Tokyo, Japan. Apple Inc changed how the world communicates and entertains through its products. Steve Jobs passed away in 2011 at the age of 56, deeply impacting the technology industry. Today, Apple has over 400 retail stores distributed among 19 countries.
Lawsuit
In 2016, the California Institute of Technology (CalTech) filed a lawsuit against Apple and Broadcom for unauthorized use of CalTech’s Wi-Fi-related patents in Apple’s iPads, Watches, Mac computers, HomePod, and iPhones. Over the last decade, Apple has dodged verdicts for controlling digital content, microprocessor technology, and document display lawsuits. Patent lawsuits usually go unnoticed; however, this lawsuit is in the top six biggest money-related lawsuits in history.
Apple Inc is one of the world’s leading companies with sales revenue of $265.6 billion dollars in 2018. iPhones sales generated 82% of the company’s revenue. Apple has sold over 218 million units of iPhones during 2018, which was a 40% increase from the units sold in 2013. Apple Inc. has won 35.8% of the smartwatch market, beating Samsung’s 11.1% share, and the company has sold over 4 million units of iPads during 2018.
Broadcom is one of Apple’s major suppliers since they signed a $15 billion contract for RF components used for their newly developed products over the next three years. Currently, Apple is using Broadcom parts for the iPhone 11. After finalizing the contract, Broadcom’s stock price increased by 3% from $319.65 to $330.10 per share. 25% of last year’s Broadcom revenue came from contracting with Apple Inc.
The court ruled that both companies must pay a total amount of $1.1 billion in damages to CalTech. This technology was found in the chip that Broadcom created for Apple Inc. Neither company was licensed to use this patent; therefore, they both owed millions if not billions of dollars to CalTech. Apple Inc must pay $838 million while Broadcom was ordered to pay $270 million to CalTech. This lawsuit is less than 1% of the generated revenue of 2018. Apple and Broadcom are planning to appeal the verdict.
Apple and the Coronavirus
More than 360 lives have been lost due to the Coronavirus and over 17,000 people currently have the virus across the world. Due to fast transportation, the virus has reached many other countries, including the United States. Apple has many stores and factories in China, some are in Wuhan, which is the city where the virus was first found. Apple has temporarily closed 42 of its stores in China and reduced the hours of operations at many other locations until February 9th. They are currently working on a plan to make up for the loss of suppliers and personnel. Currently, Apple is looking at a 10% decrease in phone shipment due to the outbreak for this first quarter. Apple could see a loss between $2 to $4 billion in revenue.
A. What was the verdict?
B. What impact on global business has Apple had by closing stores around the world
As per the given case, the California Institute of Technology claimed that Broadcom wi-fi chips utilized in millions of Apple iPhones violated patents associating with data broadcast technology.
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