Sunday, August 26, 2012

Apple Inc. (NASDAQ:AAPL)’s Win Over Samsung a Threat to Innovation [Analysis]

Does Apple Inc. (NASDAQ:AAPL)’s victory in its patents trial against Samsung mean fewer options for consumers so far as smartphones go? Will Samsung's apprehensions of a monopolistic marketplace come true?

On Friday a nine-member jury, giving their verdict at the end of a trial in a federal court in San Jose, said that Samsung had infringed on seven out of eight Apple patents. hey also said that the Korean company had copied designs of the iPhone and iPad. Samsung has vowed to appeal the jury verdict.

"This decision should not be allowed to stand because it would discourage innovation and limit the rights of consumers to make choices for themselves," Samsung lead lawyer John Quinn said. He argued that the judge or an appeals court should overturn the verdict.

According to analysts, what the ruling will do is to create a fear psychosis among those running on Google's Android, which is seen as the biggest rival to Apple's iOS.

The current war between Apple and other handset makers over patent infringements is being seen as a proxy war between Apple and Google, both of which are fighting for control of the mobile market.

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Google's Android operating system has spread faster than a virus, and has come to the dominant software with millions of apps available for download, many of which are free. Android also has the advantage that the operating software can be tweaked and customised to suit a manufacturer’s requirements.

Apple's ecosystem is totally closed and proprietorial and many of the apps available for download on iTunes have to be necessarily paid for.

Apple has even accused Google of provoking its OEM partners to copy its designs.

With the current ruling however other companies may be reluctant to fall in with Google's wishes.

On Friday, shares in Google end up 0.3 percent up at $678.63, that of Apple was up marginally at $663.22, while shares in Samsung ended up close to 1 percent.

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