Samsung loses 7.5 percent of its value in the first day of trading after Apple's court victory. It looks like the real cost of that losing verdict for Samsung could be high.
In the aftermath of the Apple vs. Samsung verdict, everyone is trying to work out what it really means. Is Google’s Android platform really at risk now? Will Apple continue to sue everyone? How will Apple’s victory over Samsung affect you?
The $1.049 billion that Samsung has to pay to Apple is less than one percent of its revenue in 2011, but focusing on the award is to ignore the real cost of this loss for the South Korean company.
Samsung Electronics shares slumped 7.5 percent after the Apple victory. According to The Guardian that’s $12 billion in market value and it is Samsung’s biggest daily drop in nearly four years. A staggering 1.27m Samsung shares changed hands on Monday, although the share price recovered slightly before the Seoul market closed.
Early indications are that Samsung’s rivals, LG and Nokia, will benefit with share prices rising for both companies. However, other Android manufacturers like HTC and ZTE saw share prices drop as well. That could signal a loss of confidence in the platform. That could also be good news for Microsoft with a Windows Phone 8 launch on the horizon and Nokia as a partner.
While Samsung has fingers in a lot of pies in the consumer electronics industry, it is sales of mobile devices which have driven recent profits. A number of Samsung devices will probably now be banned after the Californian jury found the company had infringed six Apple patents. The hearing to decide on that is scheduled for next month. Samsung’s flagship Galaxy S3 was not included in the case, but there are obviously fears that Apple will now go after it and other devices in Samsung’s line-up.
Ultimately this loss may cost Samsung a lot more than the $1 billion that the jury awarded.
Source : digitaltrends[dot]com
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