…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:
Subscribe to:
Posts (Atom)