Monday, August 27, 2012

Apple Inc. (AAPL)’s Victory Effect: Nokia (NYSE:NOK) Jumps 13% in Pre-Market

Share of Nokia Corporation (ADR) (NYSE:NOK) soared 13% in the pre-market session to $3.48 after Apple Inc.(NASDAQ:AAPL) defeated Samsung in a critical patents war. Nokia shares are gaining because that’s what they’ve plumped for.

The $1 billion jury verdict in favour of Apple Inc. (AAPL) on Friday, has given rise to debate over the future of the smartphone industry in the United States in general and Android devices in particular.

Google Inc(NASDAQ:GOOG)’s Android operating system is used by most of the phone manufacturers with the exception of Nokia, and many of them have designs similar to the Apple's iPhones.

In fact Apple is waging legal battles with handset makers including LG, HTC, Motorola over patent infringements related to certain features on its devices that it feels has been copied or look similar.

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On Friday, Apple won a key jury verdict against Samsung, which upheld that the Korean company had violated Apple’s patents and ordered it to pay more than $1 billion in damages to it.

A hearing scheduled for September 20, will decide whether Samsung Galaxy range of smartphones and tablets will be banned in the United States. In that event, the jury is out on whether that will pave the way for the domination of the smartphone market by Apple, at least in the United States.

There have been arguments, some in favour and some against the decision taken by the jury.

There are those who argue - with Samsung being a leader in this thought process - that this verdict could create a monopolistic situation with Apple becoming the dominant player in the segment.

Also, it could also hurt the prospects of Android devices and stifle competition in the market, which has been Samsung's line all along. It could put a limit on the features that are offered on non-Apple devices, with Apple claiming copyright on anything that closely resembles its design and features.

On the other hand, analysts argue, that this case would actually help in good, original creative work being done, as companies would be wary of copying designs.

A third angle to the whole problem would be for companies to pay license fees to Apple for access to its technologies.

Most Popular Article on NOK: Nokia Corporation Nearly Doubled in Five Weeks, Technically Solid

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