There is how investors like to connect Energous Corp. (NASDAQ: WATT)’s fortunes with those of Apple Inc. (NASDAQ: AAPL). It is not out of the blues that they do that, but there seems to be a valid reason for the association.
Energous Corp (NASDAQ: WATT) is in the business of selling technology that supports wireless charging in gadgets that could be smartphones or wearables such as smart watches and fitness trackers. Though the competition has already made progress on wireless charging in smartphones, Apple still lags on that front with its iPhones.
However, speculations have increased in the recent times that Apple is moving closer to including a technology that supports wireless charging in iPhones. It is unlikely that the iPhone 7 to be launched in the coming days will debut with wireless charging feature, but its successor is widely expected to have the feature.
Speculations are rife that Apple will acquire wireless charging technology for the iPhone and its other mobile devices from Energous Corp (NASDAQ:WATT). If Apple decides to endorse wireless charging in iPhones, it is expected to do it like no other has done. The company is reportedly interested in long distance wireless charging, which means that you could be moving up and down in the room while your iPhone gets charged over the air. Energous has the technology that can help Apple achieve that dream.
Lawsuit against Apple – Energous Corp. (NASDAQ: WATT)
However, a lawsuit challenging the suitability of iPhone 6 and iPhone 6 Plus as consumer devices quickly cast doubts on Energous’ prospects in serving Apple. A lawsuit has been filed in the federal court in San Jose, California, whereby the plaintiffs claim that Apple has given owners of iPhone 6 and iPhone 6 Plus a raw deal because of what the plaintiffs termed ‘touchscreen disease’. The plaintiffs cite flaws in touchscreens of the iPhone 6 series that they say essentially render the devices unusable.
Therefore, the pullback in the shares of Energous Corp. (NASDAQ: WATT) in the last session seemed to stem from investor concern that attack on iPhone credibility could hurt the sales of the product and in turn limit the benefits that Energous could obtain from selling wireless charging technology to Apple.