Apple Hit With $5.7 Billion Patent Verdict Over Technology Inside iPhones and Apple Watches

Apple (AAPL) plans to launch Apple Pay in India next month, starting with Axis Bank credit cards. The launch is enabled by a Reserve Bank of India rule change allowing biometric authentication, but will initially exclude the dominant UPI system. Axis Bank has 16.26 million active credit cards. The move is seen as a strategic expansion, but UPI's dominance and limited initial bank partnerships may restrict near-term impact.

Apple (AAPL) closed at $341.07, a new 52-week high, surpassing its previous peak from July. This breakout is significant for momentum traders and technical investors. The stock must stay above $341 to confirm the breakout. Apple's $5 trillion market cap adds importance to its performance, impacting major indices.

A federal jury ruled that Apple must pay $5.7 billion for infringing Taction Technology's haptics patents in iPhones and Apple Watches. The jury found no willful infringement. Apple plans to appeal, stating the Taptic Engine differs from Taction's technology. Taction was financed by Gronostaj and Kenosha, linked to Burford Capital.

Evercore ISI's survey shows strong iPhone 18 upgrade intent, with 61% of consumers planning to buy, and raised its AAPL price target to $380. However, pre-order data shows mixed signals, with initial shorter wait times followed by increases. JP Morgan attributes this to inventory management, not weaker demand. AAPL stock faces $2.7B in pressure from an unspecified source.

A U.S. judge certified a class-action lawsuit against Apple, accusing it of charging inflated fees for Apple Pay transactions. The lawsuit claims Apple extracts $1 billion annually in fees, violating antitrust laws. Plaintiffs argue Apple monopolizes mobile payments on iOS, charging issuers 0.15% on credit card and 0.5 cents on debit card transactions, while Android wallets charge no fees.

Bernstein maintained an Outperform rating and $370 price target for Apple but warned of downside risks to its December-quarter gross margin and EPS due to rising memory chip costs. The firm cut its fiscal first-quarter EPS estimate to $2.87, below consensus, and expects iPhone gross margin of 40.4%, also below consensus. Higher international prices partly offset the pressure, with the global average iPhone price increase about 1.3 percentage points higher than in the U.S.