Analyst: Apple Patent Win Bad News for Samsung, Android

| Apple Stock Watch

The jury in Apple and Samsung’s U.S. patent infringement trial gave the iPhone and iPad maker a landslide victory on Friday along with over US$1 billion in damages. Canaccord Genuity analyst Michael Walkley sees that win as a strong boost for Apple’s smartphone market lead, and as a big setback for Samsung and other Android-based smartphone makers.

Apple scores big in patent victory over Samsung“Following its record patent victory over leading Android smartphone OEM Samsung, we believe Apple has an even stronger competitive market position ahead of its iPhone 5 and other anticipated product launches,” he said. The next iPhone, or the iPhone 5 as Mr. Walkley called it, is expected to be introduced on September 12 and start selling several days later.

Apple and Samsung squared off in court over claims that they have been using each other’s patented technology without proper licensing. The case didn’t, however, work out as Samsung had hoped with the jury ruling it infringed on nearly every patent Apple listed. That ruling opened the door for Apple to seek an injunction blocking the sale of Samsung’s infringing products, too.

As if that wasn’t bad enough for Samsung, the jury also found that Apple didn’t infringe on any of the patents the electronics maker included in its complaint.

“While a ban would likely increase Apple’s leading smartphone share in the U.S. market, we believe this verdict could lead to Samsung also delaying near-term product launches as it attempts to design around Apple’s patents,” Mr. Walkley said. “We also believe other Android OEMs, such as HTC, Sony, and LG, will review this patent verdict and potentially alter and delay planned Android smartphones and tablets.”

Android-based product delays would be bad news for Google and the companies that make smartphones and tablets based on its mobile OS. By holding back new products, Apple’s competition will be giving the iPhone and iPad even more time to extend their already strong competitive leads, and could potentially lead to an increase in marketshare for mobile Windows devices, too.

“We believe this verdict strengthens Apple’s already strong competitive position in the smartphone and tablet markets ahead of upcoming key product launches such as the iPhone 5,” he added.

Mr. Walkley is maintaining his “Buy” rating and $797 target price for Apple’s stock. Apple is currently trading at $678.87, up 15.78 (2.38%).

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Comments

BurmaYank

?We also believe other Android OEMs, such as HTC, Sony, and LG, will review this patent verdict and potentially alter and delay planned Android smartphones and tablets.?

Maybe so, but if I were at the helm of Google’s Motorola enterprise, I’d double down now, legally.  I’d attack Apple ferociously immediately by putting out my next smartphone ASAP with blatant imitation of the iPhone’s (and/or the infringing Samsung smartphones’) most distinctive features, daring Apple to sue me too, in a different jurisdiction.

Can Apple reasonably expect to stay so extremely lucky with juries? 

And whether or not Apple does stay so extremely lucky with subsequent juries:
- If Apple loses any ground in this next suit, its Samsung winnings would be jeopardized, and
- If Apple doesn’t lose this time either, no new ground could be lost by Google; nothing is lost except $$$$s (and Apple’s/Samsung’s/Google’s cash truly ain’t nuttin but trash), and maybe any associated delay in pending enforcements could be more beneficial to Androids than iOSes.  A Win or draw, and a possible different win for Android.

AppleisTheDevil

I swear Apple is the Anti-Christ.

jonricmd

Why is Apple the Anti-Christ.  Apple spent several years and probably a billion dollars developing the iPhone.  They sweated the UI details AND the artwork.  People say that they shouldn’t be able to patent the UI or gestures as they are the “common sense” or natural way of doing these things.  However, they are only common sense/natural because Apple took time and money to research the best way of doing things and chose the most elegant.  When everyone sees how Apple did it, it seems the most natural, intuitive way of doing it because Apple doesn’t sell it until it’s easy and intuitive.

For example, look at tablet computing.  Microsoft had a tablet computer out several years ago.  Apple’s tablet computer has a COMPLETELY different interface.  There’s a prime example of how Apple innovates ? it addresses the problem until it feels right.

ipaqrat

Say what you want about the VALUE or CORRECTNESS or FAIRNESS of patents on UI’s and trade dress. I happen to own HP, not Apple stock, though you can bet I wish it were the other way!

Fact is, NOTHING looked or behaved like an iPod/iPhone/iPad before Apple unveiled them. Period. Not Windows CE/Mobile. Not RIM. Not Symbian. Ain’t ANYTHING about it is “common sense.”  The Swipe-to-unlock feature? App tiles on a grid? Their semiotics? There are countless other usable ways to do everything. Samsung/Google didn’t adopt them because they were “natural.”  Apple’s people programmed them. Samoogle’s people should have programmed some damn thing else. Case in point: Ain’t ANYONE, EVER going to mistake Microsoft’s Mobile for Apple iOS.

Recently Apple received a patent on certain aspects of trade dress for wedge shaped notebook chassis, another Apple first. Now everyone is doing it. HP openly bitched, to paraphrase, “It’s natural evolution given batteries, processors, screens, cooling, blah, blah…” That’s BULLSHIT.  Ain’t anything natural about it! They are made of metal forged in nasty machines in some country with lax environmental and labor controls.  And Apple did it first. Personally, I prefer non-wedgie personal-pizza boxes.

And anyway, Patents are NOT meant to be qualitative appraisals. Patents merely designate FIRST claim to an idea distinct enough from prior art to qualify for legal protection of subsequent monetization. That’s all. That’s why you can SELL or LICENSE them like so much engineering chattel.

John Dingler, artist

Yes, Samsung pre-iPhone looked klutzy and overdesigned, while Samsung post-iPhone looked smooth, excellent, sublime, and sexy but this was only because it blatantly copied those exceptional qualities from Apple. The jury was correct by finding a just judgement.

The many comments which express resentment, outrage, chagrin, and often outright hate on this and other sites may be because Apple is the creative force in the tablet and smartphone area and these Apple critics either hate creativity outright or have failed at it.

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