Expectations that Nokia Corporation (ADR)(NYSE:NOK) would benefit from a federal court’s patent ruling on Friday that went against Samsung, propelled the company's share up nearly 9 percent on Monday. In Helsinki its shares were up more than 11 percent at one point, before pulling back.
Nokia does stand to gain a lot, especially if Apple can get the court to ban Samsung products in the United States.
A federal court in San Jose ruled late on Friday that the South Korean handset maker had copied key features of the iPhone handset and the iPad tablet and awarded Apple $1.05 billion in damages.
“The Apple/Samsung ruling is positive for Nokia as this has the potential to change the competitive landscape [for the] short to medium term,” Peter Bo Kiaer, strategy and equity analyst at Saxo Bank, told Dow Jones' Market Watch.
Can NOK Hit $5? Find Out Here
“Nokia has been struggling to get their smartphone foothold as Apple and Samsung dominate the market with HTC Corp. as a runner-up,” Kiaer added.
Shares in the Finnish handset maker have slumped 27 percent so far this year, though it has seen a steady rally since the middle of July when news about an impending release of its new smartphone trickled into the market.
It has gained credence with its media invite for September 5 along with Microsoft, with whom it has decided to partner after junking its aging Symbian operating system.
Though shipments of its Lumia smartphones were unable to stop the company from reporting losses in its second quarter to July, a lot of investor hopes are pinned on its Lumia series that run on Windows.
Nokia shares have been rallying chiefly on account of expectations built into it, but it has to deliver on that promise for a sustained market performance.