) failed to reach a settlement with Samsung regarding patent
disputes in the recently held off the court meeting. The meeting
was arranged following the orders of the San Jose District Court
judge Lucy Koh. However, the failure makes the March 31
patent-infringement trial inevitable now.
In an attempt to dominate the global smartphone market, both
Apple and Samsung continue to fight each other over intellectual
properties (IP). The fight dates back to 2011 when Apple accused
Samsung of copying the iPad and the iPhone.
Samsung also alleged that Apple devices had violated its patents
and in retaliation lodged a number of legal suits all over the
world. The current patent infringement suit was filed by Apple,
which claimed that Samsung devices such as Galaxy S III violated
We believe that a settlement would have benefited Samsung more
than Apple. The iPhone maker currently has an upper hand in the
legal battles as it has won a number of verdicts against the
South Korean smartphone maker in recent times. Currently, Samsung
owes more than $900 million to Apple as
Though Apple seems to have emerged victorious, yet the fact is
that the victory remains confined to the courtroom only. As per
market research firm IDC, Samsung accounted for nearly 29% of the
global smartphone shipments in the just concluded quarter whereas
Apple's share fell from 20.9% to 17.9% on a sequential basis.
Apple's loyal customer base, international expansion, competitive
pricing strategy and a solid cash position are expected to aid
long-term growth. However, increasing competition from the likes
) in most of its major product segments, possible delays in
product launch, higher operating expenses and increasing legal
complexities are headwinds.
Currently, Apple has a Zacks Rank #3 (Hold).
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