Samsung shares take a hit and drop 7% after verdict

Samsung shares take a hit and drop 7% after verdict
Around the globe, overseas stock markets are opening and for Samsung, it is the first chance investors have had to react to the verdict of the Apple v. Samsung patent trial which was announced late Friday. As you might expect, with the prospect of having to pay Apple as much as $3 billion if the judge triples the award, and the chance that some Samsung devices could be banned in the States, shares of the Korean tech titan are being trashed on Monday morning.

In its home town market in South Korea, shares of Samsung dropped as much as 7.7%, the largest single day decline in four years. That wiped an astounding $12 billion off the value of the company. Equity analysts see Samsung's earnings taking a 4% hit because of patent related issues. One anonymous Hedge Fund manager in Hong Kong said that Samsung will be OK after taking this 4 to 5% hit to the bottom line. He notes that Samsung has 65,000 patents compared to 9,000 for Apple and that the latter still counts on Samsung to build the processors for the Apple iPhone and the Apple iPad..

Brokerage firm Morgan Stanley says that the verdict is an opportunity for Samsung to be a "true alternative" to Apple with its "innovative thinking". Samsung and its fans are now concerned that Apple will target the hot selling Samsung Galaxy S III which has been a true challenger to the Apple iPhone with more than 10 million units already sold. That model was not involved in the court battle.

Apple shares will officially open on NASDAQ at 9:30 am EDT. In after hours trading after the verdict was announced, the stock rose nearly $12 or 1.77% to $674. Android developer Google will also see its shares open for trading at 9:30. After hours Friday, the stock dropped $5.63 or .83% to $673.
source: GlobeandMail, YahooFinance

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18 Comments

1. rudlie

Posts: 205; Member since: Mar 13, 2012

lost $12b cause of $1.05b? what a price!

2. TheLibertine

Posts: 484; Member since: Jan 15, 2012

In your face, copycat.

3. groupsacc

Posts: 232; Member since: Feb 28, 2012

That's funny coming from a person with an Apple logo.

7. TheLibertine

Posts: 484; Member since: Jan 15, 2012

It was kind of irony. Everybody copies on this market, you cant even tell who copies whom anymore. But Samsung is just to dumb*ss to hide it.

10. groupsacc

Posts: 232; Member since: Feb 28, 2012

Well, at least they don't go around patenting everything they steal from others. Like for example when Apple filed patent for "the ability to buy digital stuff online with credits" and a carbon copy of the PS3's "Dual-Shock Controller" this year. What's more ridiculous is that they are both pending patents, if not granted already. Yeah, you can go around and call other companies as dumbasses for not patenting every single trivial, prior-arts, and stolen ideas; but at least they aren't being immoral.

11. TheLibertine

Posts: 484; Member since: Jan 15, 2012

I did seen enough fanboy arguments to know where this is heading, so i better pass.

13. groupsacc

Posts: 232; Member since: Feb 28, 2012

I assume when you say fanboi you are referring to yourself? :) have a good date mate

15. TheLibertine

Posts: 484; Member since: Jan 15, 2012

To both of us. I am an obvious Apple fanboy, you are an obvious Apple hater.

4. Rocksteady unregistered

Congrats on the 1 billion+ But now, more people hate apple. It's a loss for them on the long run.

8. TheLibertine

Posts: 484; Member since: Jan 15, 2012

By more people you mean Android fans? Well, they already do and always will. What most of the people hear in the news is: "Samsung copied Apple". The falling sales of Samsung make it clear - did you even read what the article says?

14. Rocksteady unregistered

I meant by "more people" people that may consider buying apple products. You are right regarding the negative effect of Samsung shares going down, but not sales, Samsung products provide more value for the money, In my opinion,if apple users tried a decent android device, they will consider switching. At the end, I respect your choice, if ios suits you, use it. Have a good day.

16. hengnarath

Posts: 14; Member since: Aug 26, 2012

This case showed me how iPhone were born. It's a shame that Apple own the rectangle shape when LG Prada and Samsung F700 were held by some of you before iPhone. oh how about the iSony-Style-Phone? How about those prior-art that shown in the case? Is it how you call iPhone creator the innovator? Shame...

5. Jay_F

Posts: 236; Member since: Nov 29, 2011

Ouch... I'm sure they'll do just fine in the long run though. This is just reactionary. Once the stockholders see that Samsung is virtually unaffected, they'll regain their confidence.

6. Shino

Posts: 196; Member since: Jul 23, 2012

Finally justice. But I think this fine is just too small.

9. Mitchel

Posts: 228; Member since: May 25, 2012

Samsung did copy Apple on Galaxy S variants and Galaxy Ace, but Apple's patents like "pinch to zoom" and "tap to zoom" should be invalidate..

12. Altair

Posts: 367; Member since: Feb 02, 2012

Good, burn in hell copycat Samsung! No more cheap plastic crap for consumers!

17. buccob

Posts: 2948; Member since: Jun 19, 2012

Not to worry.... The only thing Samsung has to do is to up the prices of their chips that are being supplied to Apple... so the net income from that outweighs their loss =)

18. Jay_F

Posts: 236; Member since: Nov 29, 2011

GENIUS!! Why did nobody think of that?!?! Oh yeah, they have a contract.

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