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Apple gains $18bn as Samsung sheds $12bn

Aug 27 2012 16:10
New York - Apple's $1bn court win against Samsung is translating into a much bigger jump in its market value, AP reported on Monday.

Apple shares are up $19, or 2.9%, at $682.22 in pre-market trading on Monday.

That boosts Apple's market capitalisation by $18bn. If the stock stays at that level in regular trading, it will also be a new all-time high for the company.

Late on Friday, a nine-person federal jury in Silicon Valley found that some of Samsung's products illegally copied features and designs from Apple's iPhone and iPad.

Investors appear to be betting that the verdict will make it harder for Apple rivals to ride on the iPhone's coat-tails.

Earlier on Monday Reuters reported that Samsung Electronics shares slumped 7.5% in Korean trading, wiping more than $12bn off the South Korean giant’s market value.

The sweeping victory for Apple in a US patent lawsuit raised concerns about Samsung's smartphone business, its biggest cash cow.

Samsung said it would contest the verdict that it should pay $1.05bn in damages, after a California jury found it had copied critical features of the hugely popular iPhone and iPad and could face an outright sales ban on key products.

Shares in Samsung, the world’s biggest technology firm by revenue, tumbled as much as 8%, its biggest daily percentage drop in nearly four years, to 1.173 million won ($1 000), before closing at 1.180 million won.

Apple’s triumph was meanwhile also seen as a blow to Google, whose Android software powers the Samsung products that were found to infringe on Apple patents, Reuters reported.

But it could help Microsoft, which has been struggling to win ground with its rival Windows mobile operating system. Shares in Microsoft’s handset partner Nokia jumped 6% in early trade on Monday.

Forbes reported recently that Samsung has 65 000 patents versus 9 000 for Apple.

The phone and tablet business now accounts for about 70% of earnings for Samsung, which made a net profit of $4.5bn in the April-June quarter.

The biggest concern for Samsung remains whether its latest flagship product the Galaxy S III, which was not included in the case, will also be targeted by Apple.

The model is Samsung’s best-selling smartphone, with sales topping 10 million since its late May debut.

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samsung  |  apple



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