While Apple (AAPL) stocks have seen a slow and stead rise and value throughout most of the month of February, the end of the month seems to be a bit of a drag on the price. As an Apple (AAPL) stock enthusiast, I was focusing on the good. The company’s Spring forward event, the move to protect European data privacy, even the thought of the Apple (AAPL) car had me excited. However, it seems as though I was making one of the biggest mistakes that investors were making; I was digesting the good news and ignoring the bad! So, I reached out to my friends at stock twits and asked “With all of the good news about $AAPL these days, why is the stock price falling?” OK, so that’s not the exact quote, but that’s the gist. The response I got really opened my eyes…
While I didn’t want to believe that Mr. GrindTime was telling the truth, the dramatic fall in Apple’s stock price today gave me no choice but to look into it. Low and behold…he’s onto something. In fact, Mr. GrindTime hit the nail on the head! China did drop Apple (AAPL) and we’re seeing major waves from a lawsuit from Ericsson. So, I figured I’d talk a bit about that today. Let’s get right to it…
China Ditches Apple (AAPL) & Other Foreign Technology Companies
According to MarketWatch, “China has systematically removed several leading foreign technology brands from its list of suppliers for government contracts over the past two years,”. The information is coming from a Reuters analysis that shows that China is ditching technology products from Apple (AAPL) along with Cisco Systems, Citrix Systems, and more.
While China is ditching foreign technology products, experts don’t believe that the refusal to buy these products is a sign of anger toward any of these brands. Instead, most believe that this is a step China is taking to strengthen its own technology sector. Nonetheless, Apple (AAPL) and other United States based technology companies are definitely feeling the pain.
Ericcson Files Lawsuits In Attempt To Ban Apple (AAPL) Products In United States
Perhaps even bigger news than China’s reducing interest in Apples products, Ericsson responded with 9 lawsuits against Apple (AAPL) after negotiations failed. The goal of the suit is to ban some Apple (AAPL) products including the iPad and iPhone in the United States. The Swedish technology giant says that the Apple (AAPL) products in question infringe upon 41 of their patents. In a statement, Ericsson had the following to say…
“By refusing Ericsson’s fair and reasonable licensing offer for patented technology used in Apple smartphones and tablets, Apple harms the entire market and reduces the incentive to share innovation.”
This follows a recent verdict against Apple (AAPL) that alleges that the company stole software used to store and distribute data in their iTunes platform. However, the suit filed by Ericsson is a much bigger issue entirely.
What Else Could Be Moving The Tech Market?
Another thing to note is that Apple (AAPL) isn’t the only stock moving down in the tech market today. We’re seeing the trend all over the place. Facebook (FB) is down 1.79% today, Microsoft (MSFT) is down 0.62%, Cisco Systems (CSCO) is down 1.30%, GoPro (GPRO) is down 6.07%, and Alibaba (BABA) is down 0.29% today. So, if anyone can add reasons we’re seeing the drop in Apple (AAPL) and in the rest of the tech market today, please do so in the comments below.