Apple (AAPL) Beats Samsung in Landmark Patent Case
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Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
EPS Growth %: -18.0%
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Apple (Nasdaq: AAPL) shares are at a new all-time high ahead of opening bell Monday, following a late-Friday ruling in its patent litigation with Samsung.
The jury in the case ruled that Samsung infringed on Apple's design patents, specifically:
Utility patents:
More than just fines, however, there is another element which could hurt Samsung even more: a ban. On Monday, Apple is expected to request that certain Samsung smartphones and tablets be blocked from import into the U.S. via preliminary injunction, while a final decision on the matter will come from a September 20th hearing. Both the Galaxy Tab 10.1 and Galaxy Nexus have been blocked so far, but the door is open for some or all of Samsung's 28 devices shipped to the U.S. to be blocked.
Given that Samsung is the world leader in smartphone shipments and the U.S. is still one of the largest market's for the device, Samsung-built or otherwise, total costs to the Company could total far beyond simply $1 billion.
Cantor Fitzgerald notes that patent wars are far from over. Apple and Samsung have disputes in several different markets globally and Apple also has ongoing litigation with other major OEMs. Cantor commented, "We believe the most significant effect will be a chilling on near-term product releases by many smartphone and tablet manufacturers around the world. This result may also embolden Apple and some "patent trolls" to become more aggressive in the courts."
Wedbush reiterated its Outperform rating on Apple, seeing the injunction far outweighing the cash payment. Wedbush stated, "Given Samsung has by far been Apple’s strongest competitor in the smartphone market; we believe a sales injunction would be a meaningful positive for Apple."
Jefferies sees a two-thirds chance of further injunction against Samsung products. Despite Samsung planning an injunction, the firm sees overwhelming evidence in Apple's favor.
Shares of Apple are up well over 2.5 percent in early trading. Others moving higher Monday include Microsoft (Nasdaq: MSFT), Nokia (NYSE: NOK), and Research In Motion (Nasdaq: RIMM).
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The jury in the case ruled that Samsung infringed on Apple's design patents, specifically:
Utility patents:
- '163 - Relates to enlargement of documents by tapping the screen;
- '361 - 'Bounce-back' feature when scrolling beyond the edge of a page; and
- '915 - Distinguishes between single and multi-touch gestures.
- '087 - Ornamental design of the iPhone (in white);
- '306 - Rounded square icons on interface;
- '677 - Ornamental design of the iPhone (in black); and
- '889 - Tablet design patent.
More than just fines, however, there is another element which could hurt Samsung even more: a ban. On Monday, Apple is expected to request that certain Samsung smartphones and tablets be blocked from import into the U.S. via preliminary injunction, while a final decision on the matter will come from a September 20th hearing. Both the Galaxy Tab 10.1 and Galaxy Nexus have been blocked so far, but the door is open for some or all of Samsung's 28 devices shipped to the U.S. to be blocked.
Given that Samsung is the world leader in smartphone shipments and the U.S. is still one of the largest market's for the device, Samsung-built or otherwise, total costs to the Company could total far beyond simply $1 billion.
Cantor Fitzgerald notes that patent wars are far from over. Apple and Samsung have disputes in several different markets globally and Apple also has ongoing litigation with other major OEMs. Cantor commented, "We believe the most significant effect will be a chilling on near-term product releases by many smartphone and tablet manufacturers around the world. This result may also embolden Apple and some "patent trolls" to become more aggressive in the courts."
Wedbush reiterated its Outperform rating on Apple, seeing the injunction far outweighing the cash payment. Wedbush stated, "Given Samsung has by far been Apple’s strongest competitor in the smartphone market; we believe a sales injunction would be a meaningful positive for Apple."
Jefferies sees a two-thirds chance of further injunction against Samsung products. Despite Samsung planning an injunction, the firm sees overwhelming evidence in Apple's favor.
Shares of Apple are up well over 2.5 percent in early trading. Others moving higher Monday include Microsoft (Nasdaq: MSFT), Nokia (NYSE: NOK), and Research In Motion (Nasdaq: RIMM).
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