IGB Surges Most Since 2011 in Sao Paulo After New ‘iPhone’ Plan
IGB Eletronica SA (IGBR3), the electronics maker that has rights to use the iPhone name in Brazil, surged the most in two years after announcing a new device.
The shares jumped 18 percent to 7.70 reais at the close of trading in Sao Paulo, the most since July 2011. Trading volume was more than five times the three-month daily average, according to data compiled by Bloomberg. The stock has surged 31 percent in the past two days.
IGB applied to register the iPhone name, most commonly associated with Apple Inc. (AAPL), in 2000, and won the rights to use it in 2008. The Manaus, Brazil-based company said in a statement that it plans to introduce a second model in October.
“It certainly can cause confusion in the marketplace,” John Butler, a senior telecommunications analyst with Bloomberg Industries, said by phone from New York. “The asset is the name, and it’s a valuable asset.”
Apple introduced the iPhone in 2007 and said it sold 31.2 million units in the quarter that ended in June. IGB introduced its iPhone-branded product, which runs on the Android operating system, in December 2012 and hasn’t disclosed how many it has sold.
A press official for IGB declined to comment further on the new phone. Kristin Huguet, a spokeswoman for Apple in Cupertino, California, declined to comment.
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