The lawsuit between Apple (AAPL) and Samsung is over, with Apple victorious. In summary, Samsung infringed on “bounce-scrolling” and on “pinch-zooming.” A backlash against Apple is possible, if the infringement causes the prices of Android prices to go up. Apple previously wanted a licensing fee of around $30 per unit from Samsung, which Samsung rejected.
If consumers do not react negatively towards Apple then this game-changing verdict produces some winners and losers in the industry.
Potential Losers:
An increase in subsidies by carriers will hurt profits and margins for telecom companies:
1. Verizon Communications Inc (VZ, Earnings, Analysts, Financials): Provides communication services. Market cap at $122.99B, most recent closing price at $43.17. Verizon may benefit in offering Windows phone, as Bloomberg reported. In the past, Verizon invested heavily in marketing Android.
2. AT&T, Inc. (T, Earnings, Analysts, Financials): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $213.16B, most recent closing price at $36.95.
3. Google Inc. (GOOG, Earnings, Analysts, Financials): Google is the world’s most popular search engine. Market cap at $221.93B, most recent closing price at $678.63. Google bought Motorola Mobility to reduce its risk to patent infringement. The Apple win sends a message to the Android camp that there re-designs and workarounds will be required, slowing down the innovation of Android.
Potential Winners:
4. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $621.71B, most recent closing price at $663.22.
5. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $256.2B, most recent closing price at $30.56. Windows Phone 8 will see a small benefit from Apple’s win against Samsung.
6. Nokia Corporation (NOK, Earnings, Analysts, Financials): Provides Internet and digital mapping and navigation services worldwide. Market cap at $11.81B, most recent closing price at $3.08. Windows Phone 8 maker Nokia will also see a small benefit as subsidies for Windows-based phones are expected to be more appealing. Nokia is rumored to be announcing new Windows Phone 8 devices on September 5.
7. Research In Motion Limited (RIMM, Earnings, Analysts, Financials): Designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. Market cap at $3.64B, most recent closing price at $6.94. RIM decided not to build its next-generation device on Android, a move that gives consumers more choice. Blackberry 10 is due to be released early next year.
Written by Chris Lau. To interact and discuss these picks with users, send a message to them on Kapitall.com and attach your watch list or portfolio to your friends on Kapitall. Feel free to message the author. He is ranked #5 on the all-time leaderboard. The leaderboard is located on your score icon -> Leaderboard. Members on Kapitall earn free points that may be redeemed at the Kapitall store.
Disclosure: No position in any of the stocks mentioned in this article.
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"As reported by WSJ, AT&T is the only carrier not offering an iPhone, hurting subscription growth."
I thought At&t was not only the first company to offer and iPhone but is still doing so. I think you meant T-Mobile.
What a pointless exercise, this will be appealed and it'll be in the appeals courts for years before it's thrown out.
The same way Apple sued MS for Windows,, time will show Apple copied someone else and just improved on it,,
Yes, Everything that makes a Mac a Mac was ripped off from Xerox….
yeah so those apple copied should sue Apple, until then apple has the right to sue, it goes to court, if apple has no right to sue it will be thrown out, as far as I'm concern apple is going through the proper channel right or wrong it is through the court!
Why all these complains about apple? I don't get it to be honest….
Apple put its case forward and the court decide nothing wrong about that at all, that what the court is there for.
"The Apple win sends a message to the Android camp that there re-designs and workarounds will be required, slowing down the innovation of Android. " => according to smarty because android will have to find work around and redesign it will slow down innovation???? I thought that what is actually called INNOVATION!!! DO YOUR OWN THINGS….
This article is poorly written; "AT&T is the only carrier not offering an iPhone, hurting subscription growth." **News Flash***AT&T was the FIRST carrier to offer the iPhone in 2007. T Mobile on the other hand does not offer the iPhone and was not mentioned here. Neither was Samsung… If you are going to list "Winners" & "Losers" at least list them ALL!
Additionally, If you or your company invests MILLIONS of dollars in R&D and introduces a cutting edge design and/or product AND patents it AND is granted the patent then why should another person or company benefit from copying it?? Apple is defending what is rightfully theirs to defend. All of a sudden we all forget about patents & Trademarks?? Yes this will probably drag on for years and eventually get thrown out but Apple is only doing what any company would do and that is to defend their patents!
Thanks for pointing out the error Riverzz, I'll ask the editor to remove that comment, as my reference about it was supposed to be for T-Mobile. As for Sprint, T-Mobile? Sprint paid heavily to have iPhone, so they are a big beneficiary today. Their debt levels and cash flow, however, remain a concern.
"As reported by WSJ, AT&T is the only carrier not offering an iPhone, hurting subscription growth."
You forgot the number one loser from this decision. That being the consumer. We will now get less competition and less choice in the market because companies will be fearful to anger Apple and take a beating from Apple's over reaching patents. Fortunately, I too believe most of this will be thrown out on appeal.
Mitchell, the consumer is absolutely disadvantaged, as it was gently hinted (consumers might backlash against Apple and rush to pick up android devices. Consumers may not realize the injunction would be for older phones, not the newer S3.
This could be good for the consumer in that it will force non-Apple companies to potentially come up with something totally innovative and revolutionary that looks nothing like an iPad or iPhone.
Disclosure:
Long: AAPL, GOOG, MSFT
I definately will not be buying any Apple products. The only way they can compete in the market is by sueing any competition that poses a threat to them. America is the only country where Apple have won their legal challenge. It is an ication that this is a biased judgement againts Samsung that should be overturned on appeal.
Curious that Apples big win comes right in it's own back yard of Northern California against a non American company. Just saying.
Everyone has forgot another winner…Apple shareholders such as I !!!!!!!!
tommyboy, it's pick #3, but yes, neglected in this comments thread. Apple also shows up in Kapitall's top 10 companies "most viewed" list.
…i mean pick #4
What people dont seem to realise is that the jury may well have found in Apples favour, however, it has to be sanctioned by the judge and given the things the jury members have been saying about how they arrived at the judgement, it is very obvious that the judge is going to have to legal overturn some of the items in the juries verdict simply because they ignored the jury instructions and " skipped " the prior art issue because " it was bogging them down ". It will most certainly be overturned so people are jumping the gun here. In addition,because Samsung's Tablets were deemed not to have infringed any of Apples, they will have the ban imposed by Apple on their sale in the US overturned and as was part of that deal, Apple have to pay costs for lost revenue. And looking at the projected revenues Samsung will have lost because of this ban, we are actually taking nigh on $1billion so the game has only just began. And remember, Motorola ( Google ) have also filed a case against Apple that could well see their products banned in the US. Patents, its a funny old game…..
I would love to see the whole world go thermonuclear on apple for being such thieving anti competitive disgusting company. Every single product, every single idea that has ever come from apple has been stolen, apple has never innovated, never invented anything and most definitely never made anything. I would love to see the day when the worlds biggest con artists cease to exist permanently. Technology will accelerate incredibly without apple slowing the world down. Not that i would condone it, but i would laugh if the apple headquarters and every apple building around the world was blown up.
Everyone has forgot another winner.