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Apple could acquire the entertainment company, Netflix

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Apple could acquire the entertainment company, Netflix
Apple could acquire the entertainment company, Netflix. IANS
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San Francisco, Jan 1, 2018: Contrary to the reports of Apple launching a video subscription product in 2018 to counter Netflix, analysts from Citi have said that the iPhone maker could possibly buy the entertainment company by taking advantage of US President Donald Trump’s corporate tax cut.

According to Citi analysts, Jim Suva and Asiya Merchant, there is a 40 per cent likelihood that Apple will acquire Netflix. Under the new taxing rules, the tech giant will be able to repatriate about $220 billion in cash to the US.

“The firm has too much cash — nearly $250 billion — growing at $50 billion a year. This is a good problem to have,” Suva and Merchant were quoted as saying.

“Historically, Apple has avoided repatriating cash to the US to avoid high taxation. As such, tax reform may allow Apple to put this cash to use. With over 90 per cent of its cash sitting overseas, a one-time 10 per cent repatriation tax would give Apple $220 billion for mergers and acquisitions (M&A) or buybacks,” they added.

A report in business insider said that iTunes has been a huge hit for the company, but viewers have migrated increasingly to services like Netflix, Amazon or Hulu to watch their favourite shows leaving Apple struggling to offer a compelling TV or movie offering.

In September 2017, reports poured in that Apple might lease the Culver Studios in California as it plans to pour $1 billion into TV and movie productions.

The battle for best movie scripts and television projects intensified between tech giants in the Silicon Valley. Google-owned YouTube is already producing original television series and Amazon has won Oscars for “Manchester by the Sea” show.

The iPhone maker has already hired top Hollywood talent Sony duo Jamie Erlicht and Zack Van Amburg to lead its Hollywood push and is reportedly developing a new TV show that will star Reese Witherspoon and Jennifer Aniston. (IANS)

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China Bans iPhone Sales Due to Patent Dispute

China's court decision is the latest legal action in a long-running dispute between the California tech giants.

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iPhone, Chinese
The Apple iPhone 7 is displayed at an Apple store at the Grove in Los Angeles, California. VOA

A Chinese court has ordered a ban in the country on most iPhone sales because of a patent dispute between iPhone maker Apple and U.S. chipmaker Qualcomm.

The Fuzhou Intermediate People’s Court granted Qualcomm’s request for preliminary injunctions against four subsidiaries of Apple, ordering them to immediately stop selling the iPhone 6S through the iPhone X that use older versions of Apple’s iOS operating system, according to a statement from Qualcomm Monday.

Apple said in a statement Monday its iPhones using newer operating systems remain on sale in China.

Apple, chinese
This Monday, Oct. 22, 2018, photo shows from left the iPhone 8, iPhone 8 Plus, and the iPhone XR in New York. The new XR phone has a larger display and loses the home button to make room for more screen. VOA

The Chinese court found Apple violated two of Qualcomm’s software patents involving resizing photographs and managing applications on a touch screen.
Apple shares fell Monday on the news.

“Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world,” Apple said in its statement.

Qualcomm’s general counsel, Don Rosenberg, said in a statement Monday “Apple continues to benefit from our intellectual property while refusing to compensate us. These court orders are further confirmation of the strength of Qualcomm’s vast patent portfolio.”

Qualcomm, Chinese
– The logo for Qualcomm appears on a screen at the Nasdaq MarketSite, in New York. VOA

China’s court decision is the latest legal action in a long-running dispute between the California tech giants.

Also Read: China Warns Canada Against Severe Consequences If Huawei CFO Isn’t Released

Qualcomm has also asked regulators in the United States to ban several iPhone models over patent disputes, however U.S. officials have so far declined to do so. (VOA)