Apple Wins Patent Suit, Shares Rocket

Tech giant Apple has scored a victory when the company won a patent lawsuit against rival Samsung. As a result of the victory, Apple shares hit an all-time high while Samsung’s shares declined.

Apple shares increased 2.11 percent and reached US$677.19. This means that the company valuation of Apple has reached as high as US$635 billion, making it the most valuable company in the world.

Samsung shares, on the other hand, declined 7.5 percent. This is the biggest single-day percentage slump for the South Korean giant.

Google shares, just like Samsung’s, have also slipped because of concerns for its Android operating system. Samsung carries Google’s Android in its mobile devices.

Last Friday, the court ordered Samsung to pay about US$1 billion for patent infringement. Industry analysts noted that this would open Samsung devices to be banned.

According to analyst Michael Walkley, the decision strengthens Apple’s dominance in the tablet and smartphone market. This is also welcome news as Apple is said to launch the new iPhone 5 this September.

Another analyst also said that the verdict validates Apple’s strength in intellectual property especially on mobile devices.

Indeed, Apple has been riding the waves of dominance. According to Morgan Stanley’s Katy Huberty, the implications of the verdict mean other smartphone vendors would be forced to innovate and alter their software and hardware designs to make sure these do not imitate any Apple products.

Although Google is not part of the lawsuit, industry analysts said the verdict would also be a mild setback for the company.