Samsung’s shares tumbled nearly 8% on Monday after a California jury upheld claims by rival smartphone manufacturer Apple that the Korean electronics company had infringed its patents.
The court ordered Samsung to pay $1.05bn in damages, Reuters reported, but the impact on the company’s share price was more significant, with more than $12bn wiped off its value on the day of the verdict.
Samsung Electronics said it will contest the US court ruling, which could see a ban placed on the contested products, which include the Galaxy SII smartphone reviewed by AccountingWEB last March and its successor the Galaxy SIII.
“We will move immediately to file post-verdict motions to overturn this decision in this court and if we are not successful, we will appeal this decision to the Court of Appeals,” the company said.
“There are still too many variables including the final ruling to come at least a month from the recent verdict, and whether there will be a sales ban on Samsung’s main sellers such as the Galaxy SIII," said a fund manager at one of the company’s biggest institutional shareholders.
A Reuters analysis pointed out oddities in the case, such as Samsung’s role as a key component supplier for Apple’s devices, and its counter accusations that the US manufacturer infringed some of its intellectual property. Another of Apple’s targets may well be Google’s Android operating system, which powers Samsung’s devices.