Samsung’s share goes up after legal victory against Apple

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The shares of South Korea based manufacturing giant Samsung Electronics have registered an increase of over 2% this Monday in the wake of the court’s refusal to grant Apple’s request to stop the sales of Samsung’s Galaxy line of devices in the US. This has eased the concerns of investors and analysts about the slowing growth of the company in the telecom market, which generates as much as $13 billion in revenue every quarter.

The ruling by a US court rendered Apple without crucial leverage in the global battle of patent lawsuits that it has waged against the South Korean manufacturer, and it has provided Samsung with a way to sustain its momentum in terms of strong smartphone sales. Both the companies are locked in a legal tussle which covers over 20 lawsuits in 10 countries around the world; however the US case is being seen as the most significant of them all as this marks the biggest market in terms of sales for both the companies.

This third quarter, Samsung overtook Apple to become the largest smartphone manufacturer in the world and a ruling at this time to stop all sales of its galaxy tablets and smartphones could have had a negative impact on the company’s growth as Apple had just launched its new iPhone 4S this October to a roaring start when it sold over 4 million units in the first couple of days after hitting the market. An analyst named CW Chung stated that he believes that the legal hassles between Apple and Samsung are getting smaller, or that the situation is finally turning in favor of Samsung. Analysts from Morgan Stanley have said that this ruling has removed what would be the worst case scenario for the operating profit of Samsung, which could have taken a hit by as much as $1.5 billion, and it clearly comes as a favorable event for the company.

For the third quarter, Samsung reported an operating profit of $2.2 billion in its telecommunications business, which was helped by the great sales of its top-of-the-line Galaxy range of smartphones which are based on Google’s Android mobile OS. The company has stated that it expects the results for this quarter to be better than the last. Apple filed the first lawsuit against Samsung in the US in April this year, accusing the company of blatantly copying its iPhone and iPad designs in its Galaxy devices.

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