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Apple rises and Samsung sinks after US patent verdict

Lawsuit affects firms' share prices
Tue Aug 28 2012, 10:06
Samsung logo

PATENT LITIGANTS Apple and Samsung have begun to see the fallout from their US patent infringement trial in their share prices.

Samsung shares dipped 7.5 per cent in Monday trading while Apple stock soared to $680.87 per share. The company's respective fortunes serve as a valid reminder of just how important the case was for the two courtroom foes.

Apple's stock gains surpass a previous high from last week that saw the company pass the $650 a share mark. Even before the case decision the company was riding a wave of good fortune in anticipation for the release of the Iphone 5 next month.

News is the opposite for Samsung. The technology heavyweight saw its stock get hit with its biggest daily percentage drop in 4 years. Samsung's stock news was a troubling capper to a difficult month.

As the stock disparity shows the patent case had far more reaching consequences than just a $1bn price tag for damages for Samsung.

The case verdict sets a positive precedent for Apple. The company's patents were upheld and now Samsung is faced with changing up how it thinks about smartphones. Small tweaks and workarounds are expected in the near term, but long term strategy now must go through Apple.

The Iphone maker had promised to go "thermonuclear" and the stock, the case, and the next Iphone might only be the beginning for a new technology sector landscape.

If Apple gets its way, August 2012 will someday be looked back upon as the turning point in the Samsung v. Apple smartphone rivalry. µ

 

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