Apple (AAPL) Patent Infringement in Beijing Unlikely to be Much Headwind to Suppliers - Needham & Company

Needham & Company analyst Sean Hannan said Apple's (NASDAQ: AAPL) patent infringement in Beijing is unlikely to be much of a headwind for suppliers.

Hannan commented, "The AAPL supply chain has recently been challenged by reduced orders as the iPhone works through a transitional platform year in addition to slowing global demand trends for the primary product. On top of demand issues (which could theoretically prove temporary until the new platform launches/ramps in the Fall), AAPL now faces regional government issues in Beijing as the city’s intellectual property authority ruled that the iPhone 6 and 6 Plus infringe on Shenzhen Biali’s patent rights because of similarities to Biali’s 100C phone. In the immediate-term, we don’t expect this to affect demand/volumes for AAPL, and the medium term headwinds (if the ruling is ultimately upheld) should largely be offset in Beijing by newer platforms (incl. the upcoming iPhone 7 in the Fall). Consequently, we see this as only a mild negative for names in our universe such as JBL, TTMI and MFLX."

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