Handset competitors using Android include Taiwan's HTC Corp 2498.TW, LG Electronics 066570.KS, Google's Motorola, Sony Corp 6758.T and some Chinese brands. If Apple were to pursue similar legal challenges against other Android manufacturers that could squeeze profit margins as smartphone prices decline in a growing market - reinforcing the dominance of Samsung, one of the few with big enough margins to absorb the extra cost. “This would have a positive impact on the share prices of Samsung and Apple, while posing a substantial threat to other competitors.”īased on the damages ruling, Samsung is asked to pay Apple around $10 royalty per phone, a move seen aimed at slowing rival phones that run on Android - which account for more than two-thirds of the global market. “The litigation may end up with both parties entering a cross-licensing agreement, which should enable them to build a higher patent wall in the smartphone market,” said Chung. Nomura analyst CW Chung, speaking before the verdict, predicted it could take “many years” for Apple and Samsung to settle the case whatever the result of this round, leaving the two firmly in control of the $200 billion-plus global smartphone market. “This is not the final word in this case or in battles being waged in courts and tribunals around the world, some of which have already rejected many of Apple’s claims,” Samsung said in a statement. decision, which it called “a loss for the American consumer”, indicating the legal tussle is far from over. Samsung issued a defiant response to the U.S. ruling, read out to a packed federal courtroom in San Jose, just miles from Apple’s headquarters, came less than 24 hours after a Seoul court found that while the iPhone and Galaxy look very similar Samsung hadn’t violated Apple’s design. It could lead to an outright ban on sales of key Samsung products, with Apple saying it planned to file for a sales injunction within seven days and the judge in the case setting a hearing on September 20.īecause the jury found “wilful” infringement, Apple could seek triple damages. Friday’s verdict on seven Apple patent claims and five Samsung patent claims suggests the nine-person panel had little difficulty in concluding that Samsung had copied some features of Apple’s iPhone and iPad. The California jury had only begun deliberating on Wednesday after a complex weeks-long trial. litigation has made Samsung's brand more recognisable. If anything, the blaze of publicity from the high-profile, high-stakes U.S. “With the ruling, they are now more likely to make further changes or they could simply decide to raise product prices to cover patent-related payments.”Īlso, Apple's demands for Samsung to pay it a royalty on its phone sales could hit rival phones using Google's GOOG.O Android operating system more than it hits Samsung. “Samsung has already made some design changes to new products since the litigation first started more than a year ago,” said Seo Won-seok, an analyst at Korea Investment & Securities. But its skill as a “fast executioner” - quick to match others’ innovations - would likely mean tweaked, non-patent infringing devices would be on the market soon after any ban came into place. Samsung could also see its popular Galaxy smartphone banned from sale in the United States. The group had net profit of $4.5 billion in April-June. That phone and tablet business is the powerhouse behind Samsung’s growth, earning around 70 percent of total profit. While the verdict was a big win for Apple, the damages are less than half the $2.5 billion compensation it sought - although that could yet be increased by the judge - and are just 1.5 percent of annual revenues from Samsung’s telecoms business. court has ordered Samsung - which sold around 50 million phones in April-June, almost twice the number of iPhones - to pay $1.05 billion damages, after ruling that the South Korean firm infringed on some Apple patents. An employee poses as he holds Apple's iPhone 4s (L) and Samsung's Galaxy S III at a store in Seoul August 24, 2012.
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