Samsung Loses $12 Billion after Apple's Win
Analysts estimate Samsung's earnings will be reduced by 4 percent this year due to increased patent-related provisioning. One Hong Kong-based hedge fund manager said, “Samsung should be OK - it means a 4-5 percent hit to the bottom line. Both companies are in the midst of a squabble but I don't think it's a structural negative for Samsung. At the end of the day, as Forbes reported recently, Samsung has 65,000 patents versus 9,000 for Apple. Furthermore, Apple relies on Samsung for the processing brains of their phones. I sold Samsung four months ago but am watching the stock closely now.”
The biggest concern for Samsung after the verdict remains whether its latest flagship product the Galaxy S III, which was out of the case, will also be targeted by Apple. The model is Samsung's best selling Smartphone, with sales more than 10 million.
