Jun Yang and Saeromi Shin Seoul
Samsung plunged the most in almost four years yesterday, wiping out more than $12 billion (R100bn) in market value, on concern some devices may be banned in the US after a jury said it violated Apple patents.
Samsung shed 7.5 percent after a California court ruled on Friday that the biggest maker of handsets infringed six of seven patents. Jurors said the South Korean firm must pay $1.05bn in damages in the first lawsuit between the dominant global smartphone rivals to go before a US jury.
A ban may undermine Samsung’s grip on a smartphone market valued at $219bn by Bloomberg and set a precedent for rival handset makers that use Google’s Android operating system. A judge scheduled a hearing next month to consider Apple’s request for a permanent US sales ban on devices such as the Galaxy S.
“Perhaps Samsung has technology to avoid some infringements, but [it needs] to come up with ways to get around Apple’s patents within the Android operating system, analyst Seo Won-seok at Korea Investment & Securities said yesterday.
It was “regrettable” that the verdict had caused concern among staff and customers, Samsung said yesterday.
“We trust that consumers and the market will side with those who prioritise innovation over litigation, and we will prove this beyond doubt.”
Samsung said it would ask the judge to overturn the verdict and if unsuccessful would appeal the case.
The verdict might delay Samsung’s introduction of products using Android software so it could redesign them.
Heo Pil-seok, the chief executive at Midas International Asset Management said: “This will be an uncertainty for Samsung, and investors hate uncertainty the most.” – Bloomberg