Apple’s (AAPL) favorable preliminary ruling against Samsung at the International Trade Commission (“ITC”) is under review, reported Bloomberg.
In October, Judge Thomas Pender ruled that Samsung had infringed upon three out of the four patents that were brought forward by Apple. Apple had sought a ban on some of the Samsung products, such as the Nexus range of Smartphones and Galaxy tablets alleging that Samsung had infringed upon four patents held by them.
The ITC has now asked for additional reports related to the patents. The ITC has in its capacity to ban Samsung’s products in the U.S. if Apple’s claims are substantiated. The final ruling by ITC is scheduled for Aug 1.
The patent infringement case dates back to 2011 when Apple had alleged that Samsung had copied certain features such as interpreting user gestures, including selecting, scrolling, pinching and zooming. Apple also alleged that Samsung copied the designs of its devices, including the flat face of the iPhone and iPad.
Samsung countersued by alleging that Apple had violated a patent related to data transfer technology. This case will be decided on May 31.
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 designs. So far, these lawsuits have yielded mixed results for Apple.
Despite its efforts to curb competition, Apple’s market share in the smartphone market has dwindled 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, Samsung’s market share rose from 28.8% to 32.7%.
Moreover, Google’s (GOOG) Android operating system’s market share has also increased from 59.1% (1Q12) to 75.0% (1Q13) while Apple’s iOS share went down from 23.0% (1Q12) to 17.3% (1Q13). Samsung devices comprised 41.1% of the total Android OS market.
Apple remains heavily dependent on iPhone sales (52.6% of second-quarter 2013 sales). However, Apple’s iPhone segment reported a sequential decline in units (down 22%) and revenues (down 25%), with less-than-encouraging year-over-year growth in units (up 7%) and revenues (up 3%). These negative factors are expected to weigh on the stock in the near term.
Moreover, stiff competition from Samsung, both in terms of product range and pricing of products, are the headwinds for the company, going forward. Other smartphone makers such as Nokia (NOK), Sony and Research In Motion (BBRY) are other contenders for market share.
Currently, Apple carries a Zacks Rank #5 (Strong Sell).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment