According to Bloomberg, the Intellectual Property High Court,
Tokyo, ruled in favor of Samsung, rejecting
) patent infringement lawsuit. The patent infringement was
related to the 'synchronization of music and video data in
smartphones and tablets (Samsung's Galaxy brand) with
In August, the Tokyo District Court ruled in favor of Samsung
in the same patent litigation case. Lately, Apple has received
mixed results in the patent infringement lawsuits that it is
fighting against Samsung at home and abroad.
In February, the court rejected Samsung's appeal to ban iPhone
and iPads in Japan. Last week, Apple again received a favorable
ruling from the Tokyo District Court when it ruled that Samsung
infringed Apple's technology.
Amid these positive rulings, Apple suffered a major blow in
the U.S. when the International Trade Commission (ITC) upheld one
of Samsung's patent infringement claims. The ITC in its final
verdict imposed a ban on several older models of the iPhone and
iPad in the country. The import ban was levied since Apple's
devices are assembled in China and sold in the U.S. and the world
Over the last couple of years, Apple has hardened its stance
in protecting its intellectual property from misuse and
violations. The company has been aggressive in filing lawsuits
against handset makers, such as Samsung and HTC, and has accused
these manufacturers of blatantly copying its iPhone and iPad
Despite its efforts to curb competition, Apple's share in the
global smartphone market dropped from 23.0% in the first quarter
of 2012 to 17.3% in the first quarter of 2013, according to IDC.
During the same period, however, Samsung's market share rose from
28.8% to 32.7%.
Nonetheless, the Japanese smartphone and tablet markets are
dominated by Apple. According to Tokyo-based MM Research
Institute Ltd, Apple has a 53% market share in tablets while
Samsung has a 4.3% share. In the smartphone market (1Q13), Apple
has a 40% share while Samsung does not feature among the first
five vendors, according to IDC. Moreover, IDC Japan reported that
the iPhone maintained its number one position in 2012.
Thus, any unfavorable ruling in Japan could make a dent in
Apple's competitive position and affect sales. Moreover, stiff
competition from Samsung, both in terms of product range and
pricing, are headwinds for the company. Other smartphone makers,
), Sony and
Research In Motion
) are other contenders for market share.
) has also outdone Apple with its Android operating system.
Currently, Apple carries a Zacks Rank #3 (Hold).
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