Samsung shares drop by £7.6 billion following Apple court case victory
Samsung shares dropped by over £7.6 billion by close of trading on Monday. The first full day of trading since the court ruled in favour of Apple in a landmark trial between the two technology giants. The jury decided to fine Samsung over £660 million in damages, based on several software and design patent infringements across a multitude of Samsung phones.
Despite Samsung’s decision to appeal the verdict, the market still reacted badly to the news, which is hardly surprising given the scale and exposure of this landmark patent case, but this may have more to do with the forthcoming sales injunctions Apple is seeking on the infringing Samsung products that are still on store shelves around the world.
If Apple can secure sales injunctions on the infringing devices, notably the hugely popular Samsung Galaxy S II handset, then the subsequent impact on sales could prove even more costly for Samsung than its £660 million fine. Samung can afford to pay the fine, but a ban on products could have a lasting impact on its customer base, not to mention its bottom line.
The fewer devices Samsung have on the market, the less customers they are likely to attract, which will have a lasting effect on their present and future market share. Luckily for Samsung, their flagship Galaxy S III handset was released outside the window for this trial, but that doesn’t mean Apple won’t try their luck against the Galaxy S III sometime in the future.
Google’s shares were down by a mere 1.4% after close of trading following the verdict. Samsung’s infringing products are powered by Google’s Android operating system so many expected Google’s shares might take a hit, however, it was mainly due to Samsung’s own in-house modifications to the Android operating system that led to the notable software patent infringements in the case.
Apple’s share price rose by 1.9% following the verdict. A modest increase, but an increase all the same.
The next stage in proceedings will take place on 20 September as Samsung and Apple reconvene for a preliminary injunction hearing. Only after the hearing will the true extent of Samsung’s losses become clear.Tagged in: apple, google, iphone, Samsung, Samsung Galaxy S II
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