Apple Victorious: These are the Winners And Losers - Kapitall Blog (blog)

The lawsuit between Apple (AAPL) and Samsung is over, with Apple victorious. In summary, Samsung infringed on “bounce-scrolling” and on “pinch-zooming.” A backlash against Apple is possible, if the infringement causes the prices of Android prices to go up. Apple previously wanted a licensing fee of around $30 per unit from Samsung, which Samsung rejected. If consumers do not reactive negatively to Apple, then this game-changing verdict produces some winners and losers in the industry.

If consumers do not reactive negatively to Apple, then this game-changing verdict produces some winners and losers in the industry.

Potential Losers:

An increase in subsidies by carriers will hurt profits and margins for telecom companies:

1. Verizon Communications Inc (VZ, Earnings, Analysts, Financials): Provides communication services. Market cap at $122.99B, most recent closing price at $43.17. Verizon may benefit in offering Windows phone, as Bloomberg reported. In the past, Verizon invested heavily in marketing Android.

2. AT&T, Inc. (T, Earnings, Analysts, Financials): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $213.16B, most recent closing price at $36.95. As reported by WSJ, AT&T is the only carrier not offering an iPhone, hurting subscription growth.

3. Google Inc. (GOOG, Earnings, Analysts, Financials): Google is the world’s most popular search engine. Market cap at $221.93B, most recent closing price at $678.63. Google bought Motorola Mobility to reduce its risk to patent infringement. The Apple win sends a message to the Android camp that there re-designs and workarounds will be required, slowing down the innovation of Android.

Potential Winners:

4. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $621.71B, most recent closing price at $663.22.

5. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $256.2B, most recent closing price at $30.56. Windows Phone 8 will see a small benefit from Apple’s win against Samsung.

6. Nokia Corporation (NOK, Earnings, Analysts, Financials): Provides Internet and digital mapping and navigation services worldwide. Market cap at $11.81B, most recent closing price at $3.08. Windows Phone 8 maker Nokia will also see a small benefit as subsidies for Windows-based phones are expected to be more appealing. Nokia is rumored to be announcing new Windows Phone 8 devices on September 5.

7. Research In Motion Limited (RIMM, Earnings, Analysts, Financials): Designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. Market cap at $3.64B, most recent closing price at $6.94. RIM decided not to build its next-generation device on Android, a move that gives consumers more choice. Blackberry 10 is due to be released early next year.

 

Written by Chris Lau. To interact and discuss these picks with users, send a message to them on Kapitall.com and attach your watch list or portfolio to your friends on Kapitall. Feel free to message the author. He is ranked #5 on the all-time leaderboard. The leaderboard is located on your score icon -> Leaderboard.  Members on Kapitall earn free points that may be redeemed at the Kapitall store.

Disclosure: No position in any of the stocks mentioned in this article.

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• Verizon Communications Inc (VZ, Chart, Download SEC Filings)
• AT&T, Inc. (T, Chart, Download SEC Filings)
• Google Inc. (GOOG, Chart, Download SEC Filings)
• Apple Inc. (AAPL, Chart, Download SEC Filings)
• Microsoft Corporation (MSFT, Chart, Download SEC Filings)
• Nokia Corporation (NOK, Chart, Download SEC Filings)
• Research In Motion Limited (RIMM, Chart, Download SEC Filings)

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