Apple recently won a landmark lawsuit against Samsung which slapped the Korean electronics company with a $1 billion fine. Samsung was found to have infringed on six of the seven patents Apple brought before the court, and now the company might face a U.S. ban on eight of its smartphones if Apple has its way. All this momentum for Apple has caused its stock to jump as investors are expecting the iPhone 5 to help widen the gap between Apple and Samsung. The effect on Samsung, however, may have been blown out of proportion.
Apple stock currently sits at around $673.52 at 10:51 a.m. on Tuesday after having climbed to $680 at the beginning of the week following last Friday's ruling.
Apple and Samsung are currently the two main players in an increasingly lucrative mobile market. Samsung's Galaxy tablets and Galaxy smartphones have helped it overtake Apple has the leading handset manufacturer in the world so far in 2012. Earlier in June, however, Apple successfully landed a ban against the Samsung Galaxy Tab 10.1 tablet are people are speculating that if more bans go into place, Samsung could be severely hampered in the United States.
The bans, however, would only affect older Samsung models. They include the Galaxy S 4G, AT&T Galaxy S2, Galaxy S2, T-Mobile Galaxy S2, Galaxy S2 Epic 4G, Galaxy S Showcase, Droid Charge and Galaxy Prevail. The newer Galaxy S3, the unique Galaxy Note, and the Galaxy Nexus smartphone would all stay unaffected.
"This would be equivalent to a situation if Apple was banned from selling its iPhone 3S in the U.S. market," Amir Anvarzadeh, a Singapore-based manager for Asia equity sales at BGC, said in a note today. "The potential impact of the ban looks fairly limited."
Apple is seeking a ban against the Galaxy S3, but that won't case won't begin until 2014.
Mark Newman, an analyst at Sanford C. Bernstein states that the older devices that would be affected by the ban account will have only been 1.4 percent of Samsung's next-year profits.
So yes, Apple did come out a winner. It has put Android manufacturers on guard, and has sent a clear message that it will not tolerate blatant infringement. But Samsung did not exactly lose either.
Losing the sales of the handsets Apple is trying to get banned would be less harmful to the company's financial performance than paying the licensing fee of $30 Apple is seeking, according to Newman.
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