Samsung shares drop $12 billion after Apple’s court victory

“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.


  1. [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…

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