Text size:

  • Small
  • Normal
  • Large
Samsung was ordered on Friday to pay Apple more than US$1 billion (Dh3.67bn) in damages for infringing on six patents. AFP
Samsung was ordered on Friday to pay Apple more than US$1 billion (Dh3.67bn) in damages for infringing on six patents. AFP

$12 billion wiped from Samsung after ruling

Shares worth billions of dollars changed hands in a major realignment of the smartphone industry prompted by Apple's court victory over Samsung in the United States.

Shares worth billions of dollars changed hands yesterday in a major realignment of the smartphone industry prompted by Apple's court victory over Samsung in the United States.

Samsung suffered its biggest share-price drop in almost four years, with more than $12 billion wiped off its market value.

The drop came amid fears that some Samsung phones may be banned, after the South Korean company was ordered on Friday to pay Apple more than US$1 billion (Dh3.67bn) in damages for infringing six patents.

Apple, Nokia and Research in Motion (RIM), the firm behind BlackBerry, rose in early trading yesterday.

Shares in Microsoft - which has entered the smartphone fray with its Windows Phone operating system - were also up in pre-market trading.

Many Samsung devices run on Google's Android operating system, and analysts said the court ruling could have implications for other handset manufacturers that use the platform. Google's Nasdaq-listed shares were down by more than 2 per cent in early trading yesterday.

Matthew Reed, a senior analyst at Informa Telecoms & Media in Dubai, said Apple's court victory marked a realignment in the fortunes of the various smartphone brands.

"It could lead to a rebalancing of the market shares of the different operating systems," he said.

"Clearly the ruling in the US is a victory for Apple and a problem for Samsung. In some ways this could benefit Microsoft and the Windows Phone, and the device makers that are planning to use that, and also RIM."

Nokia, which last year signed an agreement with Microsoft to use Windows Phone software in its high-end smartphones, also stood to benefit from the court ruling, Mr Reed said.

In Helsinki, Nokia was trading up 7 per cent at about 2.67 yesterday afternoon.

That represents a much-needed boost for the once-dominant company, which has lost much ground to Samsung and Apple.

Samsung currently dominates the global smartphone market, with a 21.6 per cent share of total handset sales, according to figures by Gartner.

But Friday's court ruling threatens Samsung's standing in the global $220bn smartphone market.

Apple's request for a ban on the US sales of some Samsung devices will be heard in US courts next month.

"It could be worse than this if Samsung are blocked from being sold in the US," Mr Reed said. "It's a blow for Samsung, and it's a bit of a knock for Android as well.

"More broadly, it does set down a marker, in that smartphone makers are going to have to work harder to differentiate their products, to come up with something different from Apple."

Maha Abouelenein, Google's head of communications for the Middle East and North Africa, said that the court decision did not relate to the overall Android system.

"The court of appeals will review both infringement and the validity of the patent claims. Most of these don't relate to the core Android operating system and several are being re-examined by the US patent office," she said.

PK Gulati, a prominent technology investor based in Dubai, said that the US court decision did not bode well for smaller technology companies because many creators of smartphone applications could potentially infringe on Apple's patents.

"I don't think anyone feels happy by this verdict, except probably Apple," said Mr Gulati. "It will not be innovation-friendly. I know at least 100 apps that actually use the same [touch-screen] gestures as Apple does."

Consumers in the UAE and wider region would not be affected by the court ruling, a spokesman for Samsung said.

"The verdict is only concerning [the] US market. Other markets including the Middle East region will not be affected," he said.

The US verdict affects patents on a range of Samsung products, including some Galaxy smartphones and its Galaxy 10 tablet.

The verdict "should not be viewed as a win for Apple, but as a loss for the American consumer", Samsung said. "It will lead to fewer choices, less innovation, and potentially higher prices."

bflanagan@thenational.ae

Back to the top

More articles


Editor's Picks

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 A Brabus Mercedes 6x6 Sports Utility Vehicle is readied for display during Auto China 2014 in Beijing, on April 20. Adrian Bradshaw / EPA

In pictures: Auto China 2014 exhibition

Leading automakers have gathered in Beijing for the kickoff of China’s biggest car show, but lacklustre growth and environmental restrictions in the world’s largest car market have thrown uncertainty into the mix. More than 1,100 vehicles are being showcased.

 The New York Stock Exchange. Rising interest rates will shift momentum away from bonds and back towards risk assets such as stocks. Richard Drew / AP Photo

Plan ahead for rising interest rates

It is now over five years since the majory central banks slashed interest rates to record low but that is all about to change. So, how will rising interest rates affect you?

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National