Samsung Electronics stocks fell down following a jury’s decision in a San Jose, California federal court. The court awarded Apple $1.05 billion as payment for damages due to Samsung’s patent infringement of six out of seven patents owned by Apple.
Samsung, which is currently the largest company in the world in terms of revenue, registered a loss of 7.5 percent in the stock market. This is the South Korean electronics giant’s biggest daily plunge in a span of almost five years. This marks a decline of 0.6 percent for the Korea Composite Stock Price Index.
John Park of Daishin Securities predicts that there would still be adjustments, especially since Samsung products could be facing a sales ban in the United States. It is also surmised that Samsung’s revenue could lessen up to 4 percent this year.
Samsung stated that this is the “absolute worst case” for the company, and that the court decision is “a loss for the American consumer.” Moreover, it stated its intent to appeal. Meanwhile, Apple is believed to be preparing to request for injunctions for the 25 Samsung products involved in the landmark case.
This could represent a huge blow for Samsung, especially since smartphones are among its most important products. Among its most successful products is the Samsung Galaxy S III, which is also its flagship smartphone for 2012. Samsung had been able to sell 10 million units of the device since it was launched last May. Apple, which filed the patent case last year, had not included the Samsung Galaxy S III in the list of devices that it claimed to have violated its patents. However, Apple is likely still looking for a way to keep said product out of the market.
Analysts, however, are still hopeful that Samsung would be able to emerge from these troubles with innovative devices with new technologies that are substantially different from those found on the iPhone.
Category: Tech News