Creative settlement only ‘drop in the bucket’ for Apple
Apple’s $100 million settlement with Creative Technology is only a “drop in the bucket” for Apple and removes potential future headaches for the company, according to one Wall Street analyst. “If Creative had been able to win any favorable rulings in the five outstanding lawsuits, Apple could have faced headaches including: further appeals, product injunctions, future and historical royalty payments,” said Piper Jaffray analyst Gene Munster. “Considering $100m represents 1.1% of Apple’s $9.2 billion in cash (at the end of the June quarter), we believe the settlement will prove to be the right course of action.”