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Samsung Still Has Hope – Analysts

Samsung suffered a great loss in the landmark patent case it fought against Apple. Despite the fact that the $1.05 billion fees in damages that Apple has been awarded is less than the $2.5 billion that the Cupertino company had asked for, it is undeniable that the South Korean tech giant is in the middle of a huge problem.

An analyst from ZDNet, however, surmises that there could be hope for Samsung if the company is able to keep the Samsung Galaxy Note and the Galaxy S III on the market.

On September 20, a hearing will determine if the 25 models that were said to violate three patentsthat Apple owns will be banned in the United States or not.

Analysts are divided on the issue. Some, like Katy Huberty of Morgan Stanley, highlighted the possible market share advantages that Apple will have because of the victory. On the other hand, those in Asia are optimistic that Samsung will be able to surpass this obstacle.

The Samsung Galaxy Note and the Samsung Galaxy S III, Samsung’s flagship devices for this year, will play crucial roles in determining Samsung’s fate. These two devices are not included in the list of devices that violated Apple’s patents. Apple is expected to request for an injunction on them, but given that the Samsung Galaxy S III is substantially unlike the Galaxy S II, Apple might not have much luck. That said, it would be difficult for Samsung as well as other Android manufacturers selling phones in the United States if Apple becomes successful in getting an injunction on the device.

Seunghoon Han of Deutsche Bank reportedly supports this stand, saying that the ones on the list of 25 devices are old models, and do not have flagship status. Samsung is also likely to have been hard at work at creating new product designs since the patent case started back in April last year. Thus, the effects of the patent case will be minimized in the future.

Moreover, the United States market comprises only 20 percent of Samsung’s shipments. Samsung’s losses if all of its products will be banned from that market hardly compares to the impact it will experience if it is banned from markets like China and Europe.

Samsung may recover from this mess if it continues its innovation efforts as well as works in strengthening its products especially outside of the United States.

via zdnet