The tech sector opened lower as the shares of world’s largest company Apple Inc.(NASDAQ:AAPL) gapped down this morning after reporting lower than estimated sale numbers of its recently launched iPhone 5 during the weekend.
Shares of Apple Inc.(NASDAQ:AAPL) fell about 2% in early trading as the company disclosed that it sold 5 million of iPhone 5 during the opening weekend, which is very less compared to analysts target of 6-10 million during the week. If that’s not enough, the analyst’s target of 6 million was set for the worst case scenario. So a sell of 5 million is fueling further panic among investors at large considering the heavy success rate of Apple’s new launch in the past.
There were huge expectations from the company’s latest development as the pre-order run out of stock in just an hour. After today’s fall, the stock has erased its entire gain in the past week.
In other news, Apple Inc. supplier Foxconn Technology Group ordered one of its Chinese factories closed Monday after a dormitory brawl reportedly escalated into a violent riot that took several hours to bring under control.
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Rambus Inc.(NASDAQ:RMBS) soared 9% after a judge in California decided that SK Hynix has infringed Rambus’s patents and the latter is entitled to receive royalty payments for past infringement.
TiVo Inc.(NASDAQ:TIVO) added 6.50% after Verizon Communications Inc.(NYSE:VZ) agreed to pay $250 million to the DVR maker to settle a patent infringement battle.
The companies entered into a mutual patent licensing agreement on Friday, under which Verizon will pay TiVo about $250.4 million through July 2018.
The deal consists of a cash payment of $100 million due on or before Sept. 28 and recurring payments of $6.01 million over the next 25 quarters.