$AAPL: Intel Talks Deepen with Apple — But $490M Settlement Clouds Persist

Court: N.D. California

Case: 4:19-cv-02033

Apple AAPL is reportedly in talks with Intel INTC about potential investments and a closer technology partnership, according to Bloomberg. Intel, under CEO Lip-Bu Tan, is seeking strategic allies as it restructures operations after announcing 4,000 job cuts. For Apple, the move could secure chip supply resilience amid increasing global competition with Nvidia and ARM. Yet, despite these expansion efforts, Apple still faces a $490 million settlement over claims it misled investors on Chinese iPhone demand.

• $490M settlement with investors tied to iPhone demand disclosures.
• Intel discussions signal potential Apple investment in chipmaker.
• 4,000 layoffs announced by Intel as part of cost restructuring.
• $9B revenue forecast cut in 2019 still haunts Apple’s credibility.
• AAPL shares remain sensitive to both legal and partnership news.

Timeline Overview

• Nov 1, 2018 — Tim Cook reassures investors China is not under sales pressure.
• Jan 2, 2019 — Apple cuts revenue forecast by $9B citing U.S.-China trade war.
• Jan 3, 2019 — AAPL stock drops 10% following the disclosure.
• Apr 16, 2019 — Investors sue over misleading iPhone demand claims.
• 2025 — Apple agrees to a $490M settlement to resolve investor allegations.

Allegations Include

• Concealing weakening iPhone demand in China.
• Misleading guidance despite trade war headwinds.
• Downplaying impact of battery discount program on sales.
• Misrepresenting competitive threats from Chinese rivals.

Investor Update

The $490 million settlement closes years of litigation over Apple’s China disclosures but highlights ongoing risks around transparency. While the deal removes legal uncertainty, questions on management credibility and sales visibility remain relevant for long-term investors.

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