Samsung's Market Value Plummets $12 Billion After Loss To Apple
Samsung, which lost last Friday to Apple in a patent lawsuit, was ordered to pay $1.05 billion in damages; while the company plans to contest the verdict it hasn't stopped share prices from plummeting. As of now, the news of the court ruling has sent share prices down 7.5%. This has resulted in a $12 billion loss in market value for the consumer electronics giant. Granted, over a 12 month period Samsung's stock is still up nearly 75%, so while the loss has caused a big hit in market value the company is still far from being in any sort of trouble in this regard. The big problem will be if Apple manages a sales injunction against Samsung, as the smartphone and tablet business now makes up 70% of the latter company's earnings, which came to a net profit of $4.5 billion during the April-June quarter. That said, should a sales injunction come to pass the hit to Samsung's profit margins could be sizable. Time will tell, but for now it seems this court battle between two tech giants is far from over.
Apple plans to file for a sales injunction against Samsung, its lawyers said, and the judge in the case set a hearing date for September 20. Samsung, in turn, said the verdict "is not the final word in this case".
Posted by | Mon, Aug 27, 2012 - 01:47 PM