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Apple Faces Legal Challenge From Motorola Mobility, Court Agrees to Hear Case

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Plus, Apple is creating a large data center in Hong Kong.

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MINYANVILLE ORIGINAL Judge Lucy Koh rejected Samsung's (SSNLF) motion yesterday to have Apple's (AAPL) ban of the Galaxy 10.1 tablet removed. However, Apple now faces a legal challenge from Motorola Mobility, which could put Apple in the same position as Samsung.

The US International Trade Commission, or the USITC, voted and announced today that it will investigate Motorola Mobility's claim that Apple infringed on seven of its patents. Motorola cited Section 337 of the US Tariff Act of 1930, and this section of the law could potentially ban Apple's products from entering into the United States. The investigation will cover iPods, iPads, and Mac computers. The USITC will set a date to finish the investigation within 45 days from now.

Click here for the release from the USITC.

Investors, though, have cared little for any potential legal trouble Apple may face and instead have focused on the record breaking pre-order sales for the iPhone 5. The announcement that Apple customers pre-ordered 2 million iPhone 5s in the first 24 hours of availability has helped Apple's stock reach $700 per share. Many analysts now have increased their forecasts for Apple's performance for the rest of its fiscal year, which ends this month.

Shaw Wu of Sterne Agee increased his September estimate for iPhone sales from 26 million units to 27 million units. Wu has subsequently raised his price target from $820 to $840. He expects Apple to report an annual profit of $44.25 per share compared to his earlier estimate of $44.11.

Other analysts have increased their price target for Apple. Scott Craig of Merrill Lynch has raised his price target from $770 to $850. According to CNBC, Peter Misek of Jefferies Group (JEF) sees a 30% potential upside for the stock and has set a price target of $900. He says that Apple selling more than 6 million units during the launch of the iPhone 5 this coming weekend would be a "huge positive for the company."

Gene Munster of Piper Jaffray (PJC) anticipates that Apple will sell 6 million to 10 million iPhones in the coming launch weekend, and Michael Walkley of Canaccord Genuity projects that Apple will sell 9 million to 10 million iPhone 5s for Apple's September quarter. Walkley's annual profits estimate is $43.25 for Apple's fiscal year, up from $43.25.
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