Last week and this week, Apple, Inc. has been in the news. Last week, Apple
Yesterday, news arrived of a stunning new development in the Apple versus the FBI case. According to the Washington Post's "FBI has accessed San Bernardino shooter's phone without Apple's help," the US Justice Department dropped its attempt to force Apple to write a new unencrypted operating system. Apparently the FBI had found a way to access the data in the San Bernardino attacker's iPhone without Apple's help. In a twist of irony, the Justice Department will decide whether to share its information with Apple, who will surely want to know how the FBI managed to unlock the iPhone. What are the implications of the revelation? First, there has been no precedent set to compel tech companies to aid the federal government, which is a positive for civil libertarians and the industry. Second, Apple has much work to do if it wants to remain the creator of the world's most secure phone. Of course, in the near future, there might be a similar controversial case, perhaps with an actual resolution.
The recent events have affected Apple's stock. After falling to and being stuck above the $92 range from the beginning of the year, Apple's stock price has finally found an uptrend. It broke above $100 earlier this month, and today it has risen from around $105 to around $107. Yes, the US total stock market has gone up. But part of the reason is that Apple is reinforcing its brand as the right choice for security and privacy-conscious consumers. And its loyal customers have long wanted a smaller new iPhone; Apple has listened.
The author holds a long position in AAPL.