Apple (AAPL) Weak as Beijing Orders Halt to Certain iPhones Sales; Analysts See No Impact

(Updated - June 17, 2016 11:13 AM EDT)

Shares of Apple (Nasdaq: AAPL) are lower Friday following news intellectual property officials in Beijing ordered the company to stop selling the iPhone 6 and iPhone 6 Plus in the city. The regulators said the iPhones infringe on the exterior design patent by Shenzhen Baili for its 100C smartphone.

In response, Apple said the order was stayed and it continues to sell the two phones and other phones in Beijing and China.

Despite the negative headlines, analysts see little to no impact from the ruling.

"We note that according to China IP Law, Apple can continue selling iPhone 6 and 6 Plus model during the appeal phase (this is the case currently as AAPL continues to sell all its products across China)," RBC Capital analyst Amit Daryanani said. "We would also note that should the Court rule against Apple in the final decision, the ruling will only affect sales in the City of Beijing. Therefore, we do not think the case will have any material negative impact on Apple's revenue and margins in China."

BMO Capital analyst Tim Long said, "We have seen dozens of court decisions banning different smartphone products over the years in many different countries. We are not aware of one ever that has resulted in an actual injunction."

Shares of Apple last traded down 2.1% to $95.48.

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