SEOUL,KOREA—Not long ago, Google’s email messages to Samsung were leaked. It warned Samsung must avoid mimicking Apple. Last Friday in San Jose, when all nine jurors were ready to deliver a verdict, RIM and NOKIA were better off alone. Blackberry and Windows 8-based smartphones would never be mistaken for anything from Samsung Electronics or Apple. A federal jury ruled against Samsung Electronics on multiple infringement cases; being guilty of knocking off Apple’s 6 patents. The largest Korean smartphone maker is facing a billion dollars in damages as a result, and plans to appeal the decision. Today, the KOSPI witnessed Samsung Electronics’ shares down at nearly 7%.
Samsung’s Next Move
On the same day, 16 hours earlier, the court in Korea weighed in with a split decision. Apple violated two patents and Samsung with one. And both companies were ordered not to sell infringed products in Korea and pay each other for damages. However, the latest ruling from the California court responded in favor of the most valuable U.S. company, signaling Samsung’s Headquarters in Seoul. The next day, Samsung’s key management figures convened at a closed door meeting, seemingly, to discuss its next move.
Samsung is shuffling three scenarios in the cards. One of them is already public: focusing on nullifying the decision or at least expecting a major cut in damages by bringing up legal and procedural errors. Second, last Friday’s sweeping victory for Apple can be translated into a future winning streak in Europe and Asia. Time is scarce for Samsung that could bet on royalties and settling outside the court. Two companies must feed off each other for survival. Third, Samsung may flex muscles by waging an all-out patent battle against Apple. Korea’s global IT maker has over 11,500 patents while Apple with less than 1,000.
Blow to Android-based market
According to Apple, Android is a great artist, because it steals. The iPhone and iPad maker has been looking for ways to punish the most popular mobile OS. Now, with its crushing victory over Android-based smartphones, the force is likely to be with Apple. If Samsung backs out, Android-based smartphone manufacturers such as HTC and Google, Android creator, will suffer a loss that will further feed Apple’s ego. Dramatic changes on its design and functions are inevitable. And Microsoft is ready to capitalize on the situation. Its Windows 8 smartphone like Nokia’s Lumia has not lived up to expectations. Another new platform Linux Tizen is set to launch late this year or early next year. Intel and Samsung have been working on this new open source mobile OS. Dependency on Android will gradually retreat.
Consumers are losing
Android smartphone shares a big chunk of 65% in the global market, and Apple’s iOS with 18 % is behind. Once the current market breaks afterwards, it will turn into a free-for-all. However, Apple may dominate as disoriented users with limited options become well disposed to familiar mobile system. Some people worry about Apple’s monopoly-like behavior. One anonymous internet user says, “Does the U.S. jury’s decision also rules that other companies but Apple are banned from making smartphones”
