…why didn't Apple's (AAPL) share price take a huge hit after news broke that the DOJ's antitrust division had sued the company and five publishers for alleged collusion in the e-book business? (See DOJ sues Apple over price-fixing scheme.)
Three reasons:
- It was hardly a surprise. Someone close to the case has been shopping details of the investigation to to Bloomberg, Reuters and the Wall Street Journal for weeks.
- There's still a chance for a settlement. Three of the publishers are reported to have already cut a deal. Apple and the other two -- despite their tough talk during negotiations -- could still climb on board.
- It's not Apple's main business. The $2.03 billion in "Other music related products and services" -- which includes revenue from the iTunes Store, the App Store, and iBookstore in addition to sales of iPod services and Apple branded and third-party iPod accessories -- represented 4.4% of the $46.333 billion in sales Apple reported last quarter.
Wednesday, April 11, 2012
"Why the market shrugged off the Apple antitrust suit"
From Fortune's Philip Elmer-DeWitt:
Saturday, March 31, 2012
"BlackBerry maker to cede most consumer markets"
From Yahoo! Finance:
Or, as Horace Dediu deadpans:
TORONTO (AP) -- Struggling BlackBerry maker Research in Motion Ltd. said Thursday that it will cede most consumer markets after failing to compete with flashier touch-screen phones such as Apple's iPhone and models that run Google's Android software.
Instead, RIM said it will return to its roots and focus on business customers, many of whom prefer BlackBerrys for their security. RIM has had limited success trying to enter consumer markets in recent years, and RIM CEO Thorsten Heins said a turnaround required "substantial change."
"We plan to refocus on the enterprise business and capitalize on our leading position in this segment," Heins said. "We believe that BlackBerry cannot succeed if we tried to be everybody's darling and all things to all people. Therefore, we plan to build on our strength."
http://finance.yahoo.com/news/blackberry-maker-cede-most-consumer-212323407.html
Or, as Horace Dediu deadpans:
"RIM to give up."
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