by Wadsam | August 27, 2012 6:34 am
Samsung’s shares dropped by 7.7%, the biggest daily percentage drop in nearly four years, on Monday.
The drop wiped USD 12 billion off the South Korean giant’s market value. The tumbling shares came after a California jury decided in favor of Apple and ordered Samsung to pay USD 1.05 billion in damages to Apple for copying critical features of the hugely popular iPhone and iPad.
Samsung could face an outright sales ban on key products.
The firm, according to the reports, has said it would contest the verdict.
The verdict is certainly a blow to Samsung, as its earnings are expected to be reduced by 4% this year.
Apple, on the other hand, is over the moon after sweeping victory against Samsung at the court and is guaranteed to dominate the mobile computing market.
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”.
“The ruling is a costly lesson for Samsung – but also an opportunity for a true alternative to Apple’s well-known hardware with more innovative thinking and imaginative products ahead,” Morgan Stanley analysts said in a note.
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