7.5% share slump wipes $12 billion off Samsung’s market value

August 27, 2012
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    The markets have reacted swiftly to the landmark judgement granted to Apple against Samsung. In heavy trading (around four times the daily average) Samsung’s shares plummeted by 7.5 percent taking more than $12 billion off the electronic giant’s market value. The market is clearly worried that the $1.05 billion in damages ordered by the Californian jury and the prospect of a complete ban of Samsung’s key mobile products will do irreparable damage to the company.

    “There are still too many variables including the final ruling to come at least a month from the recent verdict, and whether there will be a sales ban on Samsung’s main sellers such as the Galaxy S3,” said a Korean fund manager to Reuters.

    The verdict has also been seen as bad news for Google, who of course makes the Android OS that runs on Samsung’s phones and tablets. After the verdict, Google’s share price dropped over $10, but has since started to rebound. Other tech companies however are seeing a boost from the verdict.  Shares in Nokia, the Finnish mobile phone maker who is using Microsoft’s mobile OS, rose by 10.2 percent. Microsoft’s European-listed shares were also slightly up.

    Nokia has been struggling for survival after losing market share to iOS and Android based phones. Last year it made an alliance with Microsoft and is now the world’s largest maker of Windows Phones, but it still has less than 5% of the smartphone market.

    According to an internal memo that was sent to Samsung employees, the South Korean giant reminds its employees that “consumers and the market will side with those who prioritize innovation over litigation” and that history has shown that companies win the hearts and minds of consumers by pursuing innovation and not “the outright abuse of patent law.” This is in stark contrast to Tim Cook’s message to Apple employees which said that the company values “originality and innovation” to make “the best products on earth.

    Both sides noted that they didn’t want a court case. Samsung said it “initially proposed to negotiate with Apple instead of going to court” as they had been one of its most important customers, but it was Apple who “pressed on with a lawsuit.” Apple in turn said it “chose legal action very reluctantly” and only after repeatedly asking Samsung to stop copying its work. Cook reminded his employees that the lawsuit wasn’t about the money but was about values.

    Comments

    • http://twitter.com/KitchOMFG Kitch »

      ‘a complete ban of Samsung’s key mobile products’ The S3 and GNex wasn’t in the trial was they?

      • http://www.facebook.com/people/BűvĂ©sz-Bence/100003548748181 BűvĂ©sz Bence

        No, I think they weren’t…

    • http://www.facebook.com/duh.koda.1 Duh Koda

      Apple is full of crap.

    • fair game

      It wasnt bout money but about value. its bullshit! iphone in my country indonesia. its only rich people can afford it! Compare with android phone, it much cheaper than this luxury iphone. thats why we prefer android esp. samsung!

    • http://twitter.com/noneedtotweet noneedtotweet

      fuck apple

    • http://www.facebook.com/people/BűvĂ©sz-Bence/100003548748181 BűvĂ©sz Bence

      Wasn’t about the money?!!? Then they could’ve asked for a symbolic $1 instead of billions… I’m sure Tim fuckin Cook won’t have problems spending the 1 billion though.

    • bmeeks

      Apple is just jealous that samsung kicks their ass with a better product at a better value. They need to put their big girl panties on and stop the bull sh!t make a better product apple and people will buy, otherwise what he said below me up yours apple.

      • marc

        screw that! let me come to your house, STEAL your property, and resale it at a profit right in front of your face, and see how you like it! i don’t understand this stupid way of thinking that makes people angry at apple for defending what is LEGALLY theirs! things are patented for a reason! companies do not invest millions into developing, or acquiring technology for some fakers to capitalize on it!

        • Jose Hernandez

          The problem here is that most of Apples patents are a joke. They do not invent, they simply buy the companies that came up with the technologies, and then pass them as their own. A lot of the patents that Samsung was sued for are a joke! rectangles with edges? Please…..

    • http://www.facebook.com/people/BűvĂ©sz-Bence/100003548748181 BűvĂ©sz Bence

      Samsung should stop delivering components for the iPhone and iPad immediately!!! Apple would’ve been in deep shit without Samsung… Ungrateful bastards.

      • Nick

        though i agree with you, but in the end “Business is Business” – which is what Google has been saying lately . whats weird is how one department would have almost nothing to do with another . fuck u crApple ! stop messing with my GNote!

    • Nick

      Fuck crApple

    • Quryous

      There was SO much jury MISCONDUCT involved that I seriously doubt that the judge will let the judgment stand as it was reported. I doubt it so much that I am trying to buy as much Samsung stock as possible before the price bounces back up.

    • http://www.facebook.com/Ziplock9000 John Stock

      This changed nothing for me.. I’ll still be getting an S3 this year.

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