Investing.com – Apple pared losses Monday, helping to shield tech from the rout in the wider market, as analysts downplayed the impact on Apple from the ban of imports and sales of iPhones in China.
Apple (NASDAQ:) traded flat as analysts said the ban in China, which makes up about 20% of Apple’s total sales, was not as negative as many anticipated as it applies to older iPhone models like the iPhone 6, rather than the latest slate of iPhones, which make up the bulk of sales.
“A ban on importing old 6S does little to limit the domestic circulation of refurbished iPhones (in China),” Lynx Equity Strategies said in a note. “The bulk of Apple sales in China are typically the new models.”
Qualcomm (NASDAQ:) alleged that Apple had infringed two of its software patents concerning resizing photographs and managing applications on a touch screen. The chipmaker enjoyed its legal victory even as analysts continued to suggest the dispute would eventually be settled away from the courts. Its share rose more than 2%.
“We think the logical scenario remains the two parties end up settling their dispute away from the courts, which should be a positive for Qualcomm notably given it has taken out all Apple contribution in its model,” RBC said.
The index was up nearly 1%.