Are Traders Unfairly Abandoning Samsung?
The move does not make much sense. Samsung is not simply an electronics manufacturer that competes directly with Apple; It is an enormous conglomerate that produces a wide variety of items, including machine tools, chemicals and the memory chips that appear in consumers' favorite electronics (including iPhones). Samsung is occasionally referred to as the General Electric (NYSE: GE) of South Korea. Thus, the company can afford to take the $1 billion loss and still go on to make billions annually.
Right now, the patent verdict does not change much of anything. Samsung could use its own patents to force Apple to sign a cross-licensing deal that would greatly reduce the damages incurred at trial.
Until then, Samsung can enjoy an impressive sales increase that may or may not have had anything to do with last Friday's verdict.
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