“Samsung Electronics shares slumped 7.5 percent on Monday, wiping more than $12 billion off the South Korean giant’s market value, as a sweeping victory for Apple Inc (AAPL.O) in a U.S. patent lawsuit raised concerns about its smartphone business – its biggest cash cow,” Miyoung Kim reports for Reuters.
“Samsung, which says it will contest the verdict, was ordered to pay $1.05 billion in damages after a California jury found it had copied critical features of the hugely popular iPhone and iPad and could face an outright sales ban on key products,” Kim reports. “Shares in Samsung – the world’s biggest technology firm by revenue – tumbled as much as 8 percent, its biggest daily percentage drop in nearly four years, to 1.173 million won ($1,000), before closing at 1.180 million won. The broader Seoul market fell 0.1 percent.”
Kim reports, “In the most closely watched patent trial in years, the jury at a federal court in San Jose, California, just miles from Apple’s headquarters, found that Samsung infringed on six of seven Apple patents. The verdict, which surprised many analysts with its speed – coming after less than three days of deliberations – and the extent of Apple’s victory, will likely solidify the U.S. firm’s dominance of the exploding mobile computing market.”
“Apple’s triumph was also seen as a blow to Google, whose Android software powers the Samsung products that were found to infringe on Apple patents,” Kim reports. “But it could help Microsoft, which has been struggling to win ground with its rival Windows mobile operating system. Shares in Microsoft’s handset partner Nokia jumped 6 percent in early trade on Monday.”
Read more in the full article here.
MacDailyNews Take: Samsung made its bed, as did Google.
What we wrote back on October 27, 2011, verbatim:
Windows Phone will be popular. Over time, it’ll eat the lunch of the increasingly fragmented, increasingly insecure, and increasingly costly Android (losing patent infringement lawsuits and dropping features/paying royalties to multiple IP owners will do that to you).
The not-iPhone world will begin to dump Android and move to Microsoft’s mobile OS offering because it will eventually cost less, work better, and come with far fewer legal issues. In the iPhone wannabe market, it’s already happening (Nokia, for example). We expect the same to happen in the iPad wannabe market, too [with Windows 8/RT]. Google and Microsoft will long battle each other for the non-Apple markets and that’s a much better scenario for everyone than having a single ripoff artist flood the market with fragmented, insecure, beta-esque, mediocre-at-best products. Google’s attempt to be the next Microsoft is doomed.
This, of course, will also impact Google’s search business. Apple’s Siri will increasingly deliver info to users sans Google and Microsoft will, naturally, use Bing for their search. As we’ve said many times in the past: “Google will rue the day they got greedy by deciding to try to work against Apple instead of with them.”
The bottom line: We’d rather see a company trying unique ideas, even if – shockingly – it’s Microsoft, than the wholesale theft of Apple innovations that we’ve been seeing for over four years now. Don’t steal IP. Even worse, don’t steal IP and “claim to be innovators.” We have no problem with any companies that attempt to compete with Apple using their own unique ideas and strategies.
Like Microsoft’s Ballmer why would Samsung’s CEO care if the share price dropped to zero. Doesn’t change anything from a company’s operating perspective.
… Because it upsets the shareholders, and the shareholders elect the board, and the board appoints the CEO… Who might now lose his job. Most CEO’s derive a large portion of their income from stock options, and another portion from bonuses linked to key drivers such as profit andcrevenue targets, and the share price… So there are lots of reasons why Samsung’s CEO will be worried about such a large fall in the share price. I think Apple is not done yet with Samsung. Apple will seek to ban Samsung device sales now, but the death blow will come as a surprise a little later, and that will be the cancellation of all business relations with the Korean copier. It would not surprise me to learn that Apple are advanced in their plans to replace Samsung by building their own fabrication plants, in the US, for displays and processors. Using third parties makes it too easy for them to steal Apple’s IP. And Apple have the cash to do it. Watch this space…
You think Apple will fabricate their own chips, and do so in North America? You are living in a lala-land. There is less than no chance in hell of that ever happening. That would eat way into their margins. You are harboring delusions of good will on the part of Apple.
MDN stop praying for Microsoft’s success, once Windows Phone gains some market share Microsoft will stop caring about regulations and will do every possible illegal thing to capture more market share. Have you forgotten Mac OS and Windows saga, Netscape saga and so many other Microsoft deeds…
MacDailyNews is not praying, they’re predicting. And they’re damn good at it, too.
12 Billion Dollar drop vs. 250 Million Dollar original licensing fee. Sounds about right.
Hopefully, this drop in share price is a trend for Samsung and not just a knee jerk reaction.
Hopefully you’ll pull your head from your ass and realize how damaging this all is to consumers.
Do you really believe that thieves should be rewarded? Samsung must pay the price and anyone who put money into such an immoral company deserves to lose everything they put in it. Crime should not pay.
In Korea the judges gave the correct response: they penalized both companies for wasting everyones time with childish bs. Here in the USA we tried the case with people who have no expertise and probably just gave it to Apple because they’re a US company and they’ve been listening to too much Toby Kieth. Apple doesn’t innovate anything except the aesthetic design and the smarmy hipster appeal… they peed down Samsungs neck after climbing on their back and ridng on their shoulders. Truly a sad day when that dbag Jobs has to get in a cheap death blow to consumers’ right to choose, evenas he is burning in Bhuddist hell.
I think you have found the wrong forum for your drivel. You have apparently not studied your tech history.
Dingdong and Giggle made their beds with scorpions, black widows and cobras, may they sleep well together.
Dingdong: Where’s your other hand?
Giggle: Between two pillows.
Dingdong: Those aren’t Pillows!
Good Luck, you were made for eachother, you POS’s.
Samsung stock drop reminds me of… http://www.youtube.com/watch?v=S8H2FIf1oH4
See Samesung?
Don’t copy that floppy…..I mean mobile operating system.
Reading the comments to these trial articles is extremely depressing. The non-iPhone world is very worked up and angry. What is depressing is how few believe that Apple has a right to the exclusive purveyor of its own inventions. To them copying of IP is standard procedure, and they will go to great lengths to defend it. Are they really so lacking in reasoning skills to see that unabated copying ang and knockoffs is the real threat to innovation new technology development?
that’s why i had to stop reading macrumor’s comment section. too many half wit armchair patent attorneys try to tell the board that apple was evil and wrong to protect their IP under the laws that says they can.
These are selfish consumers who don’t really care about a company protecting it’s interests against blatant ripoff. If you put it in terms of someone ripping off THEIR interests and ideas (as a commentator cleverly did with Andy Ihnatko’s Chicago Sun-Times article after his ridiculous and blatantly wrong-headed (i.e. stupid) analysis of the verdict) then my God that’s a horse of a different color suddenly. “Apple should innovate past their competitors instead of suing!” they cry. Apple IS continuing to innovate past their competitors but that doesn’t mean it should be a free ride to copy Apple’s hard work and innovations as a starting point. Any company should be a allowed a few years to capitalize on their R&D investment and as Tim Cook has said Apple is not the R&D department for the world. I actually believe Samesham could come out of this actually in much better shape, unfortunately, if they really on their own trade dress and designs.
Those comments are depressing by design.
Don’t forget Samsung and Google have a very powerful PR machine posting propaganda on their fan forums and quickly spread by an army vocal of fans who have nothing better to do with their time. These are the same people who spend time trying out hacked versions of their phone’s software instead of getting something that works in the first place.
If you look at them long enough you’ll see common themes and even phrases. Yes, they even copy themselves.
Then there’s the sockpuppets too of course… with browser extensions making it so easy to swap account cookies any one can become 10.
That’s the problem with internet forums, just 10-20 people purposely attacking a topic makes it seems like they’re majority.
These strategies has been studied in depth at Google-sponsored research think tanks such as the Berkman Centre at Harvard, so of course they know how to use them.
Well said gkmac.
You should go look in the mirror some time. You iFanboys are pathetic.
Case in point:
1) Hates Apple but wastes his life trolling Apple-specifc sites
2) Lacks arguments so resorts to basic personal insults
3) Uses different profiles to hide his post history
It is not unexpected that the non-iPhone users (those following the trial that is) are worked up and angry, Apple products have that charm of evoking an emotional response and the popular mainstream emotion of the day is fear and derivatives such as fear and paranoia. This plays havoc since very few harmonize reasoning skills with intuitive wisdom.
Samsung should now re-consider to dig back up their Bada OS from the trash can, and really “innovate”! F88k Samsung~
Here is an interesting take on what it all means:
http://beta.fool.com/jaans/2012/08/27/understanding-apple-big-court-win-what-does-it-mea/10616/
[Samsung] slumped 7.5 percent on Monday, wiping more than $12 billion off the South Korean giant’s market value
…Which was never rightfully Samsung’s in the first place!
• The other shoe drops.
• The hole Samsung shot through their own head gets larger.
• Justice continues to be served.
• And there’s more to come…
+ ∞ Thanks Derek!