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Samsung drops $1 billion market value after US vetoes iDevice ban


Market valuation for companies can change in a flash when news is brought out, Apple went from $800 to $450 a share causing huge drops in market valuation, allowing Google to step over in market valuation, all due to questions on the innovation coming from the company since the death of co-founder and CEO Steve Jobs.

Samsung has now felt this first hand today with a $1 billion drop in market value following the Obama administration veto against iPhone 4 and iPad 2 import bans. This move has shook the stock market slightly, some investors may have thought Samsung will do worse now the devices are not banned in the US.

The move was originally to get back at Apple for the $1 billion (now $596 million) agreement with Samsung, whereby the South Korean company had to pay for copying the iPhone and iPad design with their own mobile devices.

The iPhone 4 and iPad 2 both stepped over a Samsung owned patent and the US International Trade Commission originally declared that these devices could not be sold in the US, but something struck the Obama administration and they stopped this from happening.

Some question if this is a bit of home turf defence, the South Korean government are annoyed about this move, but this does not surprise us considering recent news about Samsung having major influence with the government in their homeland.

Perhaps the Obama administration is helping out Apple because they are a US company, Tim Cook has made it very clear they pay the most tax in the country, it may be worthwhile for the US to help out Apple.

Source: WSJ


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