Foxconn chairman Terry Gou says company is ‘falling short’ of iPhone demand

According to a report from Reuters, citing a statement from Foxconn Chairman Terry Gou, Apple’s assembler is having a hard time keeping up with iPhone 5 demand. Gou confirmed previous rumors that the company is indeed “falling short” of meeting supply for iPhones and its other unit, Foxconn International Holdings, is assisting with production:

“It’s not easy to make the iPhones. We are falling short of meeting the huge demand,” Foxconn Chairman Terry Gou told reporters after a business forum.

Following the launch of the iPhone 5, reports claimed employees at Foxconn’s Zhengzhou plant went on strike over quality control concerns and lack of training. The same quality control issues were linked to scratching found out of the box on some iPhone 5 units, but it’s unclear how much these setbacks have contributed to iPhone 5 delays. Another unnamed executive speaking to The Wall Street Journal last month said the iPhone 5 is “the most difficult device that Foxconn has ever assembled. To make it light and thin, the design is very complicated.”

To speed up production of new iPhones, specifically the production of display components, Reuters suggested Apple could provide cash incentives to Sharp, one of its keep suppliers that was thought to have contributed to initial low supplies. Following rumors yesterday that Apple might even be considering making further investments in the failing company, Asymco’s Horace Dediu (via Fortune) speculated today that a $2.3 billion discrepancy in Apple’s 2012 financials might have already went to Sharp: Read more

Report: EU authorities ready to accept Apple, publishers settlement in ebook price fixing investigation

According to a new report from Reuters, EU authorities are about to accept a deal with Apple and four book publishers in order to end an antitrust investigation into whether Apple conspired with publishers to prevent Amazon from undercutting Apple’s ebook pricing. The companies originally proposed the settlement in late August, and it would see Amazon go back to its original ebook pricing for two years. By making the deal, Apple and the publishers will be able to put an end to the antirust investigation and avoid related fines:

Apple, Simon & Schuster, News Corp unit HarperCollins, Lagardere SCA’s Hachette Livre, and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, made the proposal to the European Commission in September…Pearson Plc’s Penguin group, which is also under investigation, did not take part in the offer.

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Google/Motorola says Apple’s patent claims thrown out ‘with prejudice’

 

According to a report from Reuters, Google issued a statement that a Wisconsin federal court has decided to dismiss Apple’s “patent lawsuit with prejudice.” The report explained this particular case was brought on by Apple in part to determine what the courts considered fair and reasonable licensing terms for the patent portfolio Google acquired when purchasing Motorola.

Google said in a statement that it is still interested in making a deal with Apple “at a reasonable and non-discriminatory rate in line with industry standards”:

“We’re pleased that the court has dismissed Apple’s lawsuit with prejudice,” a Google spokeswoman said in an emailed statement on Monday…”Motorola has long offered licensing to our extensive patent portfolio at a reasonable and non-discriminatory rate in line with industry standards,” Google said in its statement. “We remain interested in reaching an agreement with Apple.”

Reuters explained the case being dismissed with prejudice means it is officially over at the trial court level. However, Apple can still appeal: Read more

Apple loses appeal over tablets in UK courtroom, must publicly apologize to Samsung

Apple and Samsung’s legal fight continued on the world stage this morning, where the Britain Court of Appeal upheld a previous ruling that Samsung’s Galaxy Tab does not infringe on the iPad’s patents because it is not “as cool.” Reuters reported that after losing the appeal this morning, Apple has been instructed by the court to apologize to Samsung by running ads on its website and in newspapers saying Samsung did not infringe on patents in at least Arial 14 font.

As we all know, other courts around the world have ruled otherwise. On the ruling, Samsung gave the boilerplate: “We continue to believe that Apple was not the first to design a tablet with a rectangular shape and rounded corners.” A California court ruled this summer that Samsung owes $1 billion to Apple. Additionally, some of Samsung’s devices could be in jeopardy from being on the market.

Today’s ruling in Europe prohibits any other legal course regarding tablets and the iPad specifically. While the Court of Appeal denied Apple’s appeal today, the company can still appeal with the Supreme Court. The global legal battle is far form over, as it continues in roughly a dozen countries, with more trials scheduled for 2014.  Read more

Apple vs. Samsung: Opening Statements in the (Patent) trial of the century

Apple and Samsung appeared in a San Jose federal court today, where U.S. District Judge Lucy Koh presides, to give opening statements starting at 9 a.m. PST.

Apple filed the first suit in this monumental case in April 2011. The Cupertino, Calif.-based company claimed Samsung infringed its patents by “slavishly copying” its iPhone. Samsung, a South Korea-based Company, promptly countersued.

This is one of the important cases to go to trial among a slew of other litigations on smartphone patents. If Apple wins, Samsung could suffer a financial blow and the ability to sell its infringing products in a large market. If Apple loses, its “thermonuclear war” against Android smartphone manufacturers could essentially wither away as Samsung collects royalty fees.

This morning’s most notable highlights are below (continually updated).

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Apple makes as much profit on one iPhone as it does on two iPads

A quick Reuters report on an unsealed document in the Apple-Samsung trial reveals that iPhones are much more of a profit driver for Apple than its iPads. To the tune of double (!) per unit.

Apple Inc earned gross margins of 49 to 58 percent for U.S. iPhone sales between April 2010 and the end of March 2012…Apple had gross margins of 23 to 32 percent on U.S. iPad sales, the filing said.

That means Apple makes as much money on one iPhone as it does on two iPads (considering they cost roughly the same amount).

Who likes phone subsidies? Apple likes phone subsidies!
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