Published on August 27th, 2012 | by Paterson Prosper0
Samsung Loses $12 Billion In Market Value After Apple Patent Trial Verdict
This is why I hate the stock market. One bad thing happens and investors cry that it’s the end of the world. They don’t think things through such as appeals or the potential for a new ground breaking device now. So they dump their stock, driving the company’s worth down. On the flip side you have people who are praising Apple’s victory and about to snatch up stock at any price, inflating the value of that company.
Samsung Electronics Co. (005930) plunged the most in almost four years, wiping out more than $12 billion in market value, on concern some devices may be banned in the U.S. after a jury said it violated Apple Inc. (AAPL) patents.
Samsung plummeted 7.5 percent after a California court on Aug. 24 ruled the world’s biggest handset maker infringed six of seven patents. Jurors said the Suwon, South Korea-based company must pay more than $1 billion in damages in the first lawsuit between the dominant global smartphone rivals to go before a U.S. jury.
A ban may undermine Samsung’s grip on a smartphone market valued at $219.1 billion by Bloomberg Industries and set a precedent for rival handset makers that use Google Inc. (GOOG)’s Android operating system. A judge scheduled a hearing next month to consider Apple’s request for a permanent U.S. sales ban on devices such as the Galaxy S and S II smartphones and the Galaxy Tab 10.1 computer.
“What’s concerning is whether any ban will be extended to flagship models and will have an impact on cases in other places,” Seo Won Seok, a Seoul-based analyst at Korea Investment & Securities Co., said by phone today. “Perhaps Samsung has technology to avoid some infringements, but they also need to come up with ways to get around Apple’s patents within the Android operating system.”