Apple’s Win Means Big Opportunity for Nokia, Microsoft and RIM
The court siding with Apple in their US case against Samsung for patent infringement took its toll on Samsung as their shares took a dip, a negative effect on the South Korean company as investors are now doubtful as to how the company can bring more innovative devices when they got fined for doing just that.
Android’s fate
Another thing is, with this win, Apple is a step closer to destroying Android in general which is their main agenda in going after Android OEMs. The late Steve Jobs was intent on decimating Google’s Android ever since the search company launched their mobile operating software. Jobs felt that Google copied iOS and vowed to go thermonuclear on Android. And this is slowly being accomplished by taking down Android OEMs one at a time.
Analysts see this win as a big threat to Android OEMs as they will always run the risk of creating a device similar to those of Apple, especially when they are using the Android platform. They also risk the wrath of Apple’s fury just because they’re using the Android platform.
Consumers will also be affected once Apple gets their winning streak against other Android OEMs as this will result to fewer devices to choose from. There’s a growing chance of an Apple monopoly.
But all is not lost in the mobile market as non-Android OEMs may benefit from Apple’s win.
Nokia to rise again
Yesterday we mentioned in our report of Apple’s win against Samsung that Nokia’s shares rose by 10.2 percent to 2.746 euros a share as an interesting byproduct, while Microsoft’s European-listed shares were 1.6 percent higher. The reason behind this is that Apple’s lawyers used a Nokia Lumia phone to prove that companies can make touchscreen phones without infringing Apple’s products.
“Apple’s lawyers in the trial against Samsung used new Nokia Lumia devices to illustrate that it is possible to make mobile phones clearly different from Apple’s iPhone,” said Sydbank analyst Morten Imsgaard.
Aside from that, they have a patent portfolio that amounts to somewhere between $5 million to $10 million, so that’s quite huge. Being compared to Samsung means big for Nokia especially with how poor their business is doing. A rival company saying that you did a great job of making a non-infringing device would do more than just boost your confidence but as well as boosting your status in the mobile market.
Microsoft’s chance
Since Apple is going after Android device makers, OEMs are taking a closer look at other mobile OS’s to use on their devices, and Microsoft’s Windows Phone 8 looks enticing right now. Analysts see this is a very viable option for other vendors, especially since Microsoft’s tactic varied from Apple’s in that they pushed licensing agreements on many Android handset makers.
“After the verdict, I am sure that vendors in the Android ecosystem are wondering how long it will be before they become Apple’s target,” Carolina Milanesi, of research firm Gartner Inc., said in an interview. “This might sway some vendors to look at Windows Phone 8 as an alternative, and for the ones like HTC Corp. and even Samsung who have already announced plans to bring to market a WP8 device, how much stronger their investment should be.”
RIM out of the grim
This verdict is also benefiting Research in Motion as they got a two percent boost in shares after the verdict. Just like Nokia and Microsoft, RIM is out to be the next big thing when it comes to making mobile devices and mobile OS’s, and they ruled the market a few years back, before Apple and Samsung dominated the space. There’s also a huge chance that RIM’s shares are looking up because they have a very formidable patent portfolio which is estimated to have a value of about $1.8 billion. So seeing that the US Court is getting tough with patent infringement cases, investors would gain peace of mind knowing the company they’re betting on can fend off for themself.
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