The effects of Apple's
Clearly, the shockwaves from the Apple/Samsung battle are resonating in Silicon Valley and beyond. Late on Friday, a jury in San Jose, Calif., awarded Apple $1.05 billion in the high-profile case, ruling that Samsung had infringed six of Apple's patents.
While Apple basks in its courtroom triumph, however, Samsung has described the ruling as "a loss for the American consumer."
Here's a list of the big winners and losers in the case.
Apple, obviously, has gained the most from the court's ruling, bolstering its standing in the increasingly aggressive world of tech patents. "We believe this is a huge victory for Apple," noted Peter Misek, an analyst at Jefferies, in a note released on Monday. "This is positive for Apple, but would expect a settlement following an unsuccessful appeal by Samsung."
Apple will undoubtedly see the verdict as slowing Samsung's phenomenal rise in the smartphone market. During the second quarter, Samsung's global smartphone market share was 32.6%, up from 17% in the prior year's quarter, according to tech research firm IDC. Apple, the No. 2 smartphone player, had 16.9% of the market, down from 18.8% in the prior year's quarter, although actual units shipped increased 27.5% year over year.
Samsung's unit shipments, however, climbed a massive 172.8% year-over-year.
Brian White, an analyst at Topeka Capital Markets, said the case boosts Apple's reputation for stretching the technology envelope.
"We believe this verdict enhances the Apple brand as 'the innovator' in the smartphone and tablet markets at the expense of Samsung electronics that some will now view as the 'imitator,' while also providing a strong disincentive for future 'copying' of Apple products," said White.
The result bodes particularly well ahead of Apple's rumored launch of its next-generation products, according to Michael Walkley, an analyst at Canaccord Genuity.
"Apple has an even stronger competitive market position ahead of its iPhone 5 and other anticipated product launches," he wrote, in a note. "We believe Apple is well positioned for very strong fiscal 2013 sales and earnings growth driven by new product introductions, including the recent refresh of the MacBook Air and Pro series, an LTE iPhone 5, iPad Mini, and potentially Apple TV in fiscal 2013."
Set against this backdrop, Apple shares rose 2.11% to $677.24 on Monday.
It's not just Apple, though, that stands to gain from the court's decision.
"We see the verdict as positive for Qualcomm (QCOM)
Qualcomm shares, however, dipped 0.02% to $64.42 on Monday.
The wireless chip maker's baseband technology, which is found in Apple's iPhone, essentially functions like an antenna for smartphones.
Shah also sees the latest development in the Apple/Samsung fight as a plus for another chip maker, Nvidia (NVDA)
There have recently been rumors that T-Mobile will launch an HTC One X+ smartphone. HTC unveiled its original One X, its first with Nvidia, at the Mobile World Congress event earlier this year. The One X is powered by the chip specialist's Tegra 3 mobile processor.
Nvidia shares dipped 0.75% to $14.49 on Monday.
An HTC spokeswoman said the company does not comment on rumors and speculation. T-Mobile also declined to comment.
Samsung, obviously, is left licking its wounds, with speculation mounting about the long-term impact of the jury's decision. Canaccord Genuity's Walkley notes that a hearing has been set for September 20 to consider a ban on US sales of Samsung devices, including its Galaxy 10.1 tablet and a number of smartphones.
"While a ban would likely increase Apple's leading smartphone share in the US market, we believe this verdict could lead to Samsung also delaying near-term product launches as it attempts to design around Apple's patents," he wrote. "We also believe other Android OEMs (Original Equipment Manufacturers) such as HTC, Sony
Neither Sony nor LG, has yet responded to TheStreet's request for comment on this story. Sony shares slipped 0.26% to $11.68 on Monday.
"We believe the Apple-Samsung patent verdict out Friday night after the close is a negative for the Android ecosystem as it likely puts more pressure on Android OEMs to clearly differentiate devices and it suggests the courts may be willing to tightly enforce software and design patents in the future," added JPMorgan's Doug Anmuth.
Samsung, for its part, struck a defiant tone following the court's verdict, vowing to continue its patent struggles with Apple. "This is not the final word in this case or in battles being waged in courts and tribunals around the world, some of which have already rejected many of Apple's claims," explained a spokeswoman, in an email to TheStreet. "Samsung will continue to innovate and offer choices for the consumer."
Friday's result, of course, could also have major implications for Google (GOOG)
Charlie Wolf, an analyst at Needham & Co., noted that three of Apple's iPhone and iPad software patents were deemed valid.
"The bad news for Android licensees is that the three patents represent but a handful of the patents in Apple's arsenal," he wrote. "We anticipate Apple will assert many of these reportedly even more powerful patents in future cases against Android licensees."
"Google will be forced [
Shares of Google, which has not yet responded to TheStreet's request for comment on this story, were down 1.37% to $669.34 on Monday.
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