Is Apple Going to Conquer Europe Too?

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Apple
AAPL
and Samsung are butting heads in Europe over their new high-end cell phones. The Samsung Galaxy II is supposedly the iPhone's first true competitor. However, Apple is attempting to ban its sale in Europe, citing the fact that the Galaxy II is similar to the iPhone.

To understand more about how markets may be affected if the ban is successful, Benzinga reached out to Kevin Dede of Brigantine Advisors. According to Dede, the European cell phone market is "not as driven by high-end smart phones as it is in the US. One big reason is that European carriers do not subsidize cell phones with contracts as they do in the US."

Because the European market is not necessarily as cutthroat as the American market for flashy cell phones, ramifications may not be as bad investors may think. Dede says that "the stock may not move very much in the long-run. There will most likely be a knee-jerk reaction in the market, but Samsung's top-line will not be severely affected if the Galaxy II is banned. Samsung will also try to find a way around the ban, whether it means altering the hardware or software."

Even though many phones have been dubbed as possible iPhone killers, Samsung's Galaxy II is the first one that Apple has altercated with. Does the fact that Apple wants it banned mean that it is scared that the Galaxy II may severely affect iPhone sales? Dede thinks that may not be the case. "Many companies have been copying Apple's style over the years, and if they do not draw a line in the sand at some point, they will lose credibility." It appears that the market may want companies to defend their intellectual property instead of being taken advantage of.

Apple may prevent Samsung's new high-end phone from selling in Europe. If it happens, Samsung may not actually suffer very much. Europe is not as obsessed with smart phones as the US is, and Samsung could alter the phone a little bit to work around the injunction. It seems, however, that Apple is finally tired of products that are perceived to be copying its style.

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