Monday Apple Rumors: Apple Discloses Government Inquiries

by Christopher Freeburn | June 17, 2013 12:42 pm

Monday Apple Rumors: Apple Discloses Government Inquiries

daily apple rumors  300x180 Monday Apple Rumors: Apple Discloses Government Inquiries[1]Here are your Apple rumors[2] and AAPL news items for today:

Revealed: Apple (AAPL[3]) has released information regarding the government’s requests for customer data[4], USA TODAY notes. Apple said that between December and May it received between 4,000 and 5,000 requests for customer data from law enforcement agencies, covering between 9,000 and 10,000 mobile device accounts. Earlier this month, a former National Security Agency (NSA) contractor leaked classified PowerPoint documents to a British newspaper revealing that the NSA was collecting massive amounts of data regarding Americans’ digital communications with the assistance of leading companies like Facebook (FB[5]), Google (GOOG[6]), Microsoft (MSFT[7]) and Apple. Some of those companies, including Apple, have denied giving the government direct access to customer data. In the new disclosure from Apple, the company noted that most requests for customer data come from local law enforcement agencies looking for information on missing people or property thefts. Microsoft and Facebook have also recently revealed the extent of data requests by government agencies.

Overly Optimistic: A number of analysts are backtracking on previously-issued estimates for sales of Samsung’s flagship Galaxy S4 smartphone[8], Reuters notes. Since the beginning of this month, a number of investment firms have cut their outlook for the South Korean electronic giant, sending its shares down sharply. Morgan Stanley (MS[9]), Goldman Sachs (GS[10]) and JPMorgan Chase (JPM[11]) have downgraded estimates of S4 sales, with some firms chopping those forecasts by up to 30%. After its April launch, the S4 sold 10 million units, but sales have begun to fade in a crowded and hyper-competitive smartphone market. Lower-than-expected S4 sales is denting projections for Samsung’s quarterly results. A Samsung official noted that S4 sales were “solid” but that some analysts had “higher expectations.” Last year, Apple stock began a sharp decline after peaking above $700 a share after analysts grew concerned about slowing iPhone 5 sales.

End Game: The government’s price-fixing trial against Apple wraps up this week[12] in a New York City court, Fortune notes. The Department of Justice has accused the iPad-maker of conspiring with five publishing firms to set prices for e-books distributed through its iBookstore. Four trial days remain in the case. When the prosecutors finish, Apple will offer its defense. Expected to testify on the company’s behalf are Rob McDonald, iBookstore’s U.S. head of operations, Eric Gray, iTunes’ director of operations, Theresa Horner, Barnes & Noble‘s (BKS[13]) head of digital content and several industry and academic experts. A decision from the judge is expected about three weeks after Apple rests.

For more about the company, check out our previous Apple Rumors[14] stories.

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/apple-rumors-stock-news/
  2. Apple rumors: http://investorplace.com/search/?q=Apple+Rumors&searchsubmit=Search
  3. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  4. the government’s requests for customer data: http://www.usatoday.com/story/tech/2013/06/17/apple-data-requests-prism/2430019/
  5. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  6. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  7. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  8. previously-issued estimates for sales of Samsung’s flagship Galaxy S4 smartphone: http://www.reuters.com/article/2013/06/16/us-samsung-analysts-idUSBRE95F0H220130616?feedType=RSS&feedName=technologyNews
  9. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  10. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  11. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  12. wraps up this week: http://tech.fortune.cnn.com/2013/06/17/apple-ebook-antitrust-trial-2/
  13. BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
  14. Apple Rumors: http://investorplace.com/2012/04/hot-topics/apple-rumors-stock-news/

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