Android Central

Samsung shares dropped 7.5% today following the patent case ruling in Apple's favor late last week. While Samsung has been ordered to pay $1.05 billion to Apple, the real damage looks like it will be the $12 billion in market value lost. Meanwhile, Apple's trading jumped from $663 to $679 over the weekend. Ouch. 

Samsung has already voiced their displeasure with the ruling and vowed "We will continue to do our utmost until our arguments have been accepted." I somehow doubt that stoic determination will comfort stockholders, especially if legal talks start steering towards a sales injunction of any kind. 

There are still appeals to go through, and considering the legal precedent Samsung has set in international courts, there's a decent chance that they'll go through, but in the meantime their stock price is likely to take a kicking. How many of y'all are Samsung investors? Are you hanging onto your stock through this storm? Is it going to take more of a beating? How much does Samsung really have to worry about seeing as they're still a huge parts supplier for Apple?

via: Reuters

 

Reader comments

Samsung loses $12 billion in market value after Apple ruling

34 Comments

seems like a good time to buy then, no? I highly doubt Samsung is going to take a turn for the worse. That would be as silly as thinking Apple was going to suddenly take a sharp decline for the worse if the ruling favored Samsung. Besides, the jury foreman sounds like an Apple fanboi from what little reading I've done on the matter.

Samsung will make it back no prob but i wonder wut will happen tha supply of samsung parts to apple will there b a cut off or maybe an increase.

Agreed!..."Due to recent litigation in the mobile industry, our company must now make up over a billion $ in revenue, thus our parts supply business must raise prices significantly, thank you for understanding and continuing to patronize our business Apple..."

Tuff times ahead for the Judge in this case this week.

Also, this adverse ruling will give Samsung a legal basis to terminate Apple contracts without penalty. Look for that to happen soon.

The Korean anti-Apple sentiment may spread, and if it does Apple may be hard pressed to release any additional mobile phones in quantity.

My own unlearned opinion is that these design patents will get invalidated, the appeals court will overturn the jury verdict, and Apple will lose several key parts suppliers.

In the mean time Samsung will continue to lose market value until Apple begins to lose market share big time due to lack of product.

Apple is already several months behind on the new phone, and in this industry a few months make a big difference.

The beautiful Samsung Galaxy Nexus now pales in comparison to the S3, for example.

Interesting times, for sure.

Geez. Think before you type.

Samsung kicks one of its biggest customer's to the curb and the market hit is going to be a hell of a lot worse than $12B.

You aware of fact that Apple is actully paying for those parts? I don't think Samsung want to lose profit because legal issues in one country in diffrent market in (which they compate) with there client. Apple would not cry after them, they not only chip manufactures making ARM CPUs and Flash memory, only one who would lose here is Samsung.

How does this ruling give Samsung a legal basis to terminate Apple contracts without penalty? You do realize that whatever entity is selling parts to Apple is a completely different company than the one in court with Apple, right?

Apple changed their releases cycle from mid summer to late summer/early fall. They're on schedule. Even a little early actually if the rumors are true.

The more these jurors open their mouths to various press outlets, the easier the appeal is going to be for Samsung. It is really starting to sound like they all had Apple flavored Kool-Aid in the jury room for their short deliberations. I'm quite disgusted with all of this patent nonsense personally & this jury has not helped the cause of the status quo.

If there aren't a multitude of reversals on appeal for Samsung over this nonsense, the only viable solution is to cancel all Apple supply contracts (which nobody can replace in any meaningful numbers) & throw their weight behind every other pc/phone/technology vendor & starve Apple. The only solution Apple would have is to spend their billions on their own fabrication plants & parts manufacturing. Their quarterly earnings would take a hit after that for sure.

Like someone else mentioned, if Samsung cancels the contract of one of their biggest accounts, the damages will be much larger. Don't you think Apple thought about that before they proceeded with this law suit? LOL

Actually I did think of that. I also took the time to go study a little bit at Samsung's balance sheet at Hoover's where I research my stock purchases. Losing Apple would hurt in the short term but only for 1-2 business quarters. Samsung would rebound quite easily after that. Apple wouldn't replace Samsung that quick.

But thx for playing.

So lol & have a nice day.

Suck nuts Apple, you seem to have taken over as the Evil Empire from Microsoft and yet you stole your $hit from Xerox back in the day.

Don't the latest 'leaks' on the iPhone 5 have an LG or Sharp screen? If that's the case, isn't that a majority of Samsung's share with Apple?

Ok, so Im still reading through this article, but one of the jurors, Manuel Ilagan, admitted that they went through all of Samsung's products and determined that they violated trade dress because their products had flatscreens with bezels... REALLY!!??? AM I READING THAT CORRECTLY!!???

The juror instructions were very clear. The thing about juror instructions is, you don't get to read a dozen internet articles before you come to your own conclusion. You get to look at JUST what the judge announces is eligible. You then get to see the question, like "is the samsung phone described in exhibit 47 in violation of the patent in question in exhibit 48?" and if the patent in question and the infringing phone have anything in common, then yes you better answer "they infringed" because that's your job as a juror.

The jury stories are hilariously pro-apple and pro-patent, but that doesnt mean they did anything more than uphold a horribly broken patent process. The process needs to change in order for this to get better.

Yet again I say, the common sense that has made this country great has left the building, because insanity is easier. I would like to know what kind of moron thinks a good strategy for his business, is to sue everyone into submission so they don't have enough money to bring products to the market. I am thinking of another company who seemed to want to sue people instead of making themselves relevant again.....does anyone remember the SCO Unix mess......need I say more.

Wait a minute, that's a potentially effective business strategy. Yea it doesn't line up with your end goals as a consumer but don't forget that the sole purpose of a business is to make money, by any means (usually within the law) necessary.

Yeh that really blows, but hey I'm just a consumer. So no matter how this went, I still have to pay for my products. Those companies have billions to
spare. Samsung just has to take the hit and keep moving,
making good products, and learn from this, end of story.

If Samsung doesn't appeal and win (or at least make headway) then Apple will take this victory and run far and wide to every other court in the US, suing every other phone maker that produced anything flat with a screen on one side, and rounded corners. This means that "your products" will either be an iPhone (if you want a flat phone with a screen on one side) or "everything else" which is perhaps some sort of three-sided triangular deal with a screen on both sides and all square buttons. That's how awful a phone would have to look to not violate the "innovative and unique design" protected by Apple's patent.

Relax. The sky isn't falling. Apple held up a Nokia Lumia as an example of a phone that doesn't infringe Apple's products. Designs are yet to be created, Samsung just has to get creative.

I think its good that samsung learnd thier lesson . I mean i have galaxy s 3 but i want them innovate and not to try in apple way . Cuz apple way sucks . I want samsung to make better and hope they change thier touchwiz icons too cuz it looks ugly and like iphone icons

You cannot purchase Samsung shares in the US unless you buy a Korean ETF or mutual fund containing it among other companies.

I think this is complete bullsh*t and Apple is jealous Samsung has a bigger user community. iPhone's are garbage and locked down unless you jailbreak it (NOT THE SAME AS ROOTING!). Google Android enabled devices are made with the techie in mind and allows the freedom to do what you want with the device you OWN and Payed for. When I buy a phone, is it mine or does Apple or Samsung own it? right didn't think so... So let me do what I want with my phone and stop complaining when a company makes something better! Suck it Apple!! And for all you iPhone sheep out there, Keep over paying for a useless device.

I think now is a good time to buy Samsung stocks. I do not believe that Samsung will just rollover and die any sooner, given that it has other businesses aside from mobile phones; they have televisions, washing machines, digital cameras, what have you. Apple has just iphones, mp3 players and macbooks. By the way, I am a BlackBerry user.

So when does Cisco sue Apple for naming their OS their iOS. This has been the operating system of Cisco since the early 90's. Hey Cisco, look at the cash cow using your OS naming!

I also agree with earlier post about Samsung either raising chip prices on Apple if not cutting them off. "Sorry Apple, don't want you copying our design using our own chips......make your own."

I believe Apple has the name licensed. And old Sammy would be dumb to do that because Apple is one of their biggest customers.

As much as I love Android and feel it is significantly different than iOS, I can't help but feel that Samsung blatantly copied the iPhone's UI with their Touch-Whiz interface. There were too many signs that pointed to this, including Google themselves asking Samsung to further differentiate their devices from Apple's.

Bad move, Samsung. Now you're paying.

Let's innovate and make the differences shine rather than copying.

-sent via my Samsung Galaxy Nexus. No Touch-Whiz on this baby!