Its a new week and Apple’s stock see’s a record day in the stock market. Did the verdict against Samsung play a part in Apple’s record day, sure it did. Apple’s win will play a big part on how the phone business works.
The world’s most valuable company wasted no time seeking injunctions on its rivals’ gadgets, many of which have made headway on its home turf.
On Monday, the company sought preliminary injunctions against eight older-model smartphones, including the Galaxy S2 and Droid Charge. Apple’s lawsuit had encompassed 28 devices, but many of the accused products are no longer widely available in the world’s largest mobile market.
Many on Wall Street believe Apple has momentum behind it in the wake of its near-complete triumph over the South Korean company on Friday.
“The evidence and weight of the case are heavily in Apple’s favor,” said Jefferies & Co analyst Peter Misek. “We expect there is a two-thirds chance of an injunction against Samsung products.”
An injunction hearing has been set for Sept 20. If U.S. District Judge Lucy Koh grants sales bans, Samsung will likely seek to put them on hold pending the outcome of its appeal.
Friday’s win strengthens Apple’s position ahead of the iPhone 5’s expected September 12 launch and could cement its market dominance as companies using Google Inc’s Android operating system – two-thirds of the global market – may be forced to consider design changes, analysts say.
Apple was awarded $1.05 billion in damages after a U.S. jury found Samsung had copied critical features of the iPhone and iPad. The verdict could lead to an outright ban on sales of key Samsung products.
While the victory does not cover new Samsung products including the Galaxy SIII, Apple will push its case on these products in the near-term, Evercore Partners analyst Mark McKechnie said.
“While a ban would likely increase Apple’s leading smartphone share in the U.S. market, we believe this verdict could lead to Samsung also delaying near-term product launches as it attempts to design around Apple’s patents,” Canaccord Genuity analysts said in a note.
[Reuters]
