Last Saturday, right after the news that a jury had determined that 25 Samsung cellphones and three tablet models infringed on Apple patents, a friend asked me if I thought Apple would further benefit from this verdict, or if Samsung would see this as a chance to become a real innovator. I told her my immediate thoughts were how much this outcome would benefit Nokia Corp. (NYSE: NOK) and Microsoft Corp. (Nasdaq: MSFT). I believe that thanks in part to this verdict, Nokia will return to its former self sooner rather than later. My friend was surprised.
At this point, it's no secret this verdict will definitely affect tablet and smartphone designs. We may finally see some real innovation from Samsung. We can also expect a dramatic change in the future of other mobile device manufacturers, and maybe a turn around -- I am thinking Nokia here -- as EBN editor in chief, Bolaji Ojo, suggested in Apple-Samsung: Can't We All Just Get Along?
Yes, we all wish that they all could get along, but Apple and Samsung keep on fighting in different corners of the world. Meanwhile, on the other side of the globe, Finland is beginning to see a new wave of hope for local hero Nokia, as the Finnish company showed a frenetic growth in the Helsinki Stock Exchange and a strong opening on Wall Street. Indeed, Monday was a day of good news.
In fact, Nordea Markets research analyst Sami Sarkamies had also said that the Finnish manufacturer and Microsoft could be the main beneficiaries from the Apple vs. Samsung outcome, so I'm more optimistic about Nokia's comeback. Then I read that earlier this week, after Samsung became considerably less valuable in the market, MoneyNews reported that shares in Nokia were 10.2 percent higher and Microsoft's European-listed shares were 1.6 percent higher.
All these reports support my initial thoughts. I strongly believe that the patent dispute between Apple and Samsung could boost Nokia and Microsoft's mobile device sales in unexpected ways. This decision comes right before Nokia World, September 5 through 6 in Helsinki, Finland, where Nokia is expected to announce its first tablet. This event -- this year is invitation-only -- has been timed to complement the Nokia and Microsoft press conference already scheduled for September 5, where the Windows Phone 8 is expected to be introduced as well as Nokia phones that will run the Microsoft smartphone platform. It's worth mentioning that Nokia World's date was changed from the initial September 25. This makes me think that the company wanted to make sure its newest devices were announced right before Apple's.
I am also pretty confident that the latest chain of events may translate into some Android users choosing to migrate to Nokia or Microsoft products in search of a more stable and reliable situation -- at least until Samsung's destiny becomes more clear. I have seen Nokia go up, down, and stay afloat, but never close to dying. If this is an opportunity, Nokia will take advantage of it.
There's a good chance that Nokia's stocks and sales may get an even more radical boost throughout the end of the year thanks to Apple's win against Samsung. There is always hope when there is still life, and Nokia may rise again.
Susan, good analysis... but I am leaning slightly on the cautious side. The outcome of the law suit between Apple and Samsung might create an opening for Microsoft operating systems to flare. Nokia might shine from this event but to what extent? Has its device got the edge? Can it appeal to consumers? These are food for thoughts.
That's the thing, Nokia is announcing new products next week, products that have been kept in some sort of secrecy, Nokia has been very silent lately, which makes me suspect something big might be coming out. If this is the case, it can be a wow moment for many consumers who were waiting to get a new device at this time of the year. Samsung is presenting an uncertain near future. Apple customers will always be Apple customers. So the change here may come from Android users wanting to try the new Microsoft OS in a trusted hardware. Then there is the whole new Apps story.
I just got disappointed when I got an email saying that this year the Nokia World was going to be divided in small events rather the usual big one. Next week the event is only for operators. Developers and the press will have to wait. :/
" I strongly believe that the patent dispute between Apple and Samsung could boost Nokia and Microsoft's mobile device sales in unexpected ways."
I believe that too , but for a different reason. We haven't seen a new product (totally different) for a long time from those two companies. But that as you mentioned in the blog post it is also a great opportunity for Nocia to recover and to be as a strong competitor as it was before a couple of years.
"We haven't seen a new product (totally different) for a long time from those two companies."
True. That's why there is a good chance now, if they have managed to work on something real new and different this time. Next week, when they products come out to the light, we'll see if we are right.
In my opinion this Apple-Samsung verdict may piut some check on Android variant based smart phones bringin out Apple lookalike products and that is where Nokia's W8 based smart phones have a chance to up their market share.
But with Microsoft itself now trying to establish itself as a product player ( Surface) , Nokia has to carefully plan its product strategy
Also with the verdict going against Samsung, Apple has strengthened its position. Isn't it?
I also believe that Apple has strengthen its position. However, there is a slide of consumers in the mobile device pie chart that will never consume Apple products, for one reason or another. Those are the one I am thinking as the best candidates at this given moment for the Nokia W8 upcoming devices.
"But with Microsoft itself now trying to establish itself as a product player ( Surface) , Nokia has to carefully plan its product strategy."
This is also interesting, because Nokia has been working on its first tablet, too. See: Here.
I remember the first Windows cell phone I ever had. It was a Samsung, if I recall correctly. What an experience. It was the first time I had ever had a phone crash on me. Froze right up. Couldn't make a phone call. Windows. A real winner. Nokia employees, start planning for your bonuses.
That experience reminds me when I wrote about Nokia Blue Screen, at the beginning of the partnership. I suspect Microsoft has learned something by now, wouldn't you agree?
"I suspect Microsoft has learned something by now, wouldn't you agree?"
They should have learned to wear masks by now, yes. Just imagine if you were a Microsoft employee and somebody recognized you at the grocery store. You'd have to leave all your groceries behind as you ran for your car.
And there is no sign of violating any of Apple's patents.
@t.alex, I still can't accept the fact that round cornered icons can become Apple's patents. I feel Apple is feeling threatened by Samsung's growth and is trying to limit the growth by filing number of patent violation suit against it. Infact outside USA Apple has lost many patent lawsuit against Samsung latest being in Japan.
Well I think Apple has to resort to any means when it is obvious that Samsung is trying their best to copy and make their phones look like iPhone as much as possible.
it is obvious that Samsung is trying their best to copy and make their phones look like iPhone as much as possible
@t.alex, I am not sure if its obvious that Samsung is trying to copy the iPhone. Dispute is not about technology but about the some small graphics. I believe this practice by Apple will kill the competition in smartphone market.
" I believe this practice by Apple will kill the competition in smartphone market. "
I don't think so. On the contrary, I believe it will awake more innovation and creativity in the competitors. Why do all the smartphones have to look like iPhones? At least we have to see that Nokia smartphones look different.
On the contrary, I believe it will awake more innovation and creativity in the competitors.
@Susan, I am not saying patenting is wrong. But all I am saying is patenting look and feel of the handset is wrong. Unfortunately users in the US will not be able to buy samsung products and thus you cant expect Apple to slash its product price because it has not competition now.
Yes, I see your point. This is when it becomes interesting in the US market. You see, if Samsung devices get out of the market, what do you think it will happen with Nokia and Microsoft? Do you think they can take a good slice of the American pie?
Do you think they can take a good slice of the American pie?
@Susan, definitely. Nokia has a very good opportunity to capture the US market in absence of Samsung. Meanwhile did you see the leaked images of Nokia Lumia 920 ?
What I like the most about the Lumia 920 is that it is wireless with a charging base. I have been wanting for a manufacturer to come up with this for such a long time. I hate cables in a way you can't imagine.
The wireless charger is fascinating as a concept. I wonder if it would be enough to win over the Apple crowd, though. It's an innovative idea that has been around for a while and Nokia has scored a first by introducing it in a product. Which begs the question, who's going to claim the IP for it and sue who for violating their patent?
"Nokia has scored a first by introducing it in a product. Which begs the question, who's going to claim the IP for it and sue who for violating their patent?"
Good question. However, if someone claims something with suing intention it would be too obvious.
I have been waiting for wireless charging capability for a long, long time.
Susan, What I meant was that if wireless charging takes off and consumers see it as a compelling, must have feature, it could and would be copied by everyone else. Then, the IP fight would start with one or more companies claiming they developed the technology behind it. It's obvious the industry thrives now on IP court fight.
Sorry for the late reply. I seem to have overlooked the notification.
"Then, the IP fight would start with one or more companies claiming they developed the technology behind it. It's obvious the industry thrives now on IP court fight."
Oh, yes. That's for sure. The technology already existed, though. I don't know why it was not implemented earlier.
"I wonder if it would be enough to win over the Apple crowd, though."
Why the Apple crowd and not the Android one? It's easier for an Android user to migrate to W8 with all the good hardware and wireless of the Nokia phone than for an Apple user to migrate to something else. Usually an iOS user is a Mac user. For an iOS user would be the end of synchronizing devices.
Hi Susan: This really raised my awareness of the potential for these two companies and the verdict does seem to be a turning point. Until recently, Windows/Nokia didn't seem to be resonating with market-watchers and analysts. Although I am not a Microsoft fan (Windows 7 is driving me crazy...just a different organization than XP) I am rooting for Nokia. They have always been resilient and I think the market really needs a wide choice in smartphones and tablets
Yes, we don't need to be a Microsoft or Nokia fan to see what can possibly happen here out of this patent war mess. :)
At some point Apple lawyers held up a Nokia Lumia as an example of a product that does not copy Apple. This has to be an incentive for Nokia to keep on designing devices that stand out from the mobile device crowd, I believe.
I have also tried to remember if I even saw a Nokia that could have been taken by an iPhone, and I couldn't come up with anything.
I have also thought that most likely many people who have bought a Samsung secretly wanted an iPhone, but the price of a Samsung was more attractive.
And yes, Nokia has that capacity to recovery from difficulties. That's another reason why now it seems to be the right time to do it so.
We all know you have been secretly cheering Nokia from the sidelines for ages now.
I like Nokia too and felt the current correction in 2012 was massively over-done in the stock[Finally Market agreed by pushing the stock up by over 50% in last two months].
This feels like a battle which is all set to go down to the wire and be decided in two places-The Court-rooms and in the Market-place.
I also feel like this Judgement is gonna spur the race for more and more Patent accumulation for defensive purposes.What a waste of valuable resources!!!
That's why it's important to identify who we are responding to, when there are lots of comments in the conversation it can get messy. :) But that also means that people have lots of things to say.
I wonder in what position the result of the lawsuit puts the die hard Samsung fans. Will it have an impact on the resale of the cellphones? Will it also effect the sales of S3?
I understand that the infringement is concerned with previous models made by Samsung but wouldn't it dent the company's perception? In my opinion it will create some kind of thoughts in the minds of the customers about the new phones. Probably, a few months down the line would their phone fall prey to another lawsuit concerning patents?
Consumers can have their belief shattered even by small things. I think lawsuits are much more serious.
When was the last time,You checked the list of Patent infringements(or otherwise) when you purchased a Smartphone/Electronic Device?
It all depends on Perception and Samsung manages Expectations.
If they give the impression that they were the wronged party and are not gonna back down;I feel that There will be no shortage of Would-be Samsung Consumers.
On the other hand if they withdraw and go into a corner;that's when they get into trouble.
You are correct I didn't check any myself. But I am sure I would have done some research if the last time I bought a phone and there were high profile patent wars in the market.
Anyways, what I was trying to convey was that customer trust is fragile and that customers might get offended.
Yeah, the kids are the major force behind smartphone sales here. They get all sorts of devices even if most of them only use it to surf the internet or play. The best part here is that parents often allow their children to carry these expensive gadgets which is quite the opposite of my generation.
Well Yes those 2 sompanies will gain extral market share while the other 2 fights for its rights. Anyway I still feel that brand name will decide on which one to go and which one not to. I preffer Apple (Nothing personal against Samsung but I like the features and the technology on which apple was built on.)
Well Susan, why Im going with the brand name because when you decide to go for a new device you always think twice or thrice on to decide on to which brand you go for. A that point you may do not have a brand loyalty to any but once you start using you will get used to it and the features of it will make youloyal to that brand most oftenly. So that is where the brand loyalty comes and when market war like Apple and Samsung are having right now wll not make that much of a difference to the ones who are loyal to a specific brand. That is the reason why I say brand Loyalty will win in the end of the war.
Apple customers are not loyal to the company for the sake of being loyal. The most important thing is the excellence of the Apple products. That excellency is what drives people to become loyal to a company that always delivers excellent quality, great design, and an amazing user experience.
You could argue about the high price of the products, but once you have tried one you don't want anything else and will always make the effort to have your Apple device.
Loyalty to Apple is not empty loyalty. It's recognition to quality.
True susan I agree with you onit. Apple has made their name over the past few years thanks to their great boss SJ. Its he who bought Apple to what they are right now. I also feel that Apple will continue to grow and will not fall out from the tree which they were grown and fed.
Susan I know this is a bit old post to comment now but I want to make a statement on what I did few weeks back on Apple. I studied the movements of Apple so far and looks like they are kind of stucked after the demise of SJ. I thought they will do well as they wre used to be but its not happening.
It seems that Apple is on a sleep mode these days. The iPhone 5 did not do well as they expected. I think iPhone4s did more than the 5. I think a re-design of stratergy is required from Apple
What I feel is that Apple should try something to catch the eyes of the market. Ipad and Ipad mini plus Iphone 5 has done very little so far. They should change things to make their own path like they used to bein the good old days where SJ was alive.
"But I am sure I would have done some research if the last time I bought a phone and there were high profile patent wars in the market."
@syedzunair: I don't think a lot of consumers would do the same thing. Most consumers are unaware of these patent wars in the market. It's only the recent one between Apple and Samsung has been gaining so much popularity so consumers are aware of it, otherwise they don't care about these things.
"Do you think consumers who are aware of the patent disputes could be influenced by this at the time of purchasing their next mobile device?"
@Susan: I think to some degree their purchasing decision will be affected but not a great deal. For instance, some consumers may have a negative image of Samsung in their minds after it has been accused of patent violation, but there are still quite a lot of people who are not bothered about it and they still love Samsung.
Of course not everybody will choose to try a different hardware or OS, but as things are presented so far some might do, especially with new devices like the new Nokia W8 coming out soon, right?
The reaction that the market has given[By pushing up the value of Nokia ,Apple and Microsoft shares];clearly shows the market expects these companies to do well.
But I was wondering more about Google(particularly what will their reaction be)?
Lets face the facts;by Attacking Samsung;what Apple really did was attack Google's Android OS.
I have a feeling that this will force Google to file counter-suits on Apple & also lead to something else-Bringing more of the Android OS Development Cycle back in-house.
The effect on Innovation? Very,very Significant as Android OS Development Cycles start falling in line with those of Apple and Microsoft.
I doubt many Open Source enthusiasts will take this development lightly.
But its an inevitable transistion(IMHO);Google is just bowing to the inevitable.
Most Open Source enthusiasts can anyways go with LiMo or Mozilla's new Mobile OS.So Android can go head to head with Apple,Microsoft and Symbian on the same terms.
Here is the latest from Samsung- The breaking news publihsed in Chicago Tribune on Aug 29
'Samsung to get first Windows phone to market, surprising Nokia
Samsung Electronics became the first handset maker to announce a smartphone using Microsoft's latest mobile software, making its surprise, hurried announcement just days before the highly anticipated launch of Nokia's version.'
In corporate news, investors will be handicapping the impact of Apple's(Nasdaq:AAPL) patent victory over Samsung in the smart-phone market. In addition to the obvious positive boost to Apple, the development may be beneficial to Microsoft (Nasdaq:MSFT) and Nokia's (NYSE:NOK) market shares.
Well, the market shares look like an interesting thing to watch these days.
Tahnks for adding that! :) Although it doesn't sound right, does it? :/ I was pretty sure Nokia was going to be the first one announcing its devices with W8, as MSFT partner that would have been the right thing, right?
Don't you smell rat in all this issue?
Maybe Samsung announcing its phone with W8 first is like a Statement to Apple, like saying that Apple can't do anything about that as Apple and Microsoft have a patent arrangement. Hmm
Unlike Susan(whos a Self-confessed Nokia Fan):I am more neutral and just tells me that the Smartphone Marketplace is about to get more interesting once again.
"Unlike Susan(whos a Self-confessed Nokia Fan):I am more neutral"
Am I?
I agree that this smartphone business is getting more and more interesting. And yes, this Samsung announcement came as a surprise. Nokia should be the first announcing a W8, as MSFT partner. Don't you agree?
Look I don't know what the Legal Terms and regulations are with respect to being a "Microsoft Partner".
If there is no Legal obligation that ensures that Nokia should be the first to bring Windows Phones to the market;then I see no issue here[Other than the fact that Nokia got pipped at the post AGAIN!!! Maybe Nokia should just go ahead and Fire their entire Mobile Strategy and Management Team-Bunch of fools if you ask me;How else do you run a perfectly fine world-class company into the Ground???]
There is no such concept of Fairness in Business.
Everything is Fair in Love and War and this is War-THE SMARTPHONE WARS!!!
Susan, i can feel your enthusiam about Nokia but what about other manufacturers such as LG, RIM, Motorola, ZTE, etc. Will Nokia benefit only because it is associated to Microsoft or because of its hardware capability. In both the scenarios, other manufactures can equally benefit. In particular, ZTE which has risen to No. 4 smartphone seller this quarter.
I don't see there will be a significant big difference with the other manufacturers. However, I see there is going to be a difference with Nokia. No, it's not for the association with Microsoft only.
How do you see LG, RIM, Motorola, ZTE, benefiting from this in a notorious way?
what about other manufacturers such as LG, RIM, Motorola, ZTE, etc. Will Nokia benefit only because it is associated to Microsoft or because of its hardware capability.
@Himanshugupta, I think Nokia provides one of the best hardward configurations. Nokia provides the camera and battery whose specs are one of the best in ithe industry. Thiswill definitely help Nokia to overcome competition from other manufacturers.
I understand Monsanto may have been incorporating Apple code into GMO corn. That accounts for all the people who have mysteriously become Apple fanatics. Otherwise, why hasn't Apple sued Monsanto?
I don't know if you've seen the news where researchers have been able to encode text within genetic sequences. DNA is supposed to be fairly stable, and might be a good way to encode programs. So, maybe they will have a GMO patent arrangement. And we'll be eating corn made out of the Apple operating system.
I believe that thanks in part to this verdict, Nokia will return to its former self sooner rather than later. My friend was surprised.
@Susan, thanks for the post. I am not sure if the news is as terrible as it is being projected for samsung. Fact is this ruling does not impact Samsung Smartphone and tablet sales in India and I am assuming in other emerging markets too. This will impact the sales of Samsung only in US which is predominantly Apple dominated market.
On Friday, a Tokyo District Court ruled for Samsung. Japanese patent system seems to be highly regarded, so this certainly weights in the general Apple-Sansung war.
Japanese patent system seems to be highly regarded, so this certainly weights in the general Apple-Sansung war
@Susan, that is what my concern is. I feel Apple won its case because it had hometown advantage. Needs to be seen how other courts will interpret this fight.
Anandvy, I don’t think any advantages like home based or native. Laws are always strict and legible, so there won’t be any advantage for a native company or foreign companies. But these rules may varies from country to countries and from states to states.
Yes, of course there are variations from country to country. I wouldn't be sure if being a native or foreign company has some important weight in these cases. It shouldn't, but we all know many things that shouldn't be, and they are, right?
Samsung lost in Germany, won in Japan and had a split decision in Korea. All on the same patent dispute. In the United States, Apple won and is trying to an Samsung products. It may succeed but that won't keep Samsung out of the US market. In the meantime, neither company stands a chance of pursuing crazy patent action in the market that's now projected to overtake the US as the largest for smartphones in the near future: China.
Where does that leave the Apple victory over Samsung in the United States? Stateside. That's where. Analysts crow about how Apple is going to blunt Samsung's growth in smartphones as a result of this ruling. It will probably do so in the U.S. but it won't in other parts of the world. That's what all the other rulings indicate.
The global market is exactly that, a global market. We need to take off our blinders in the West. Judges won't decide this competition; consumers will.
"In fact, Nordea Markets research analyst Sami Sarkamies had also said that the Finnish manufacturer and Microsoft could be the main beneficiaries from the Apple vs. Samsung outcome"
Susan, I agree with your comment at corporate level. But from customer point of view is it good or bad for them. So far Samsung had sold many tablets and Smartphones, so either they have to pay royalty or go for new designs. So obliviously there are chances for a price hike in new devices and doubtful about certain features too.
Susan, if they are forcing for a new design, they have to undergo various steps before the next releases. There maybe also chances for hike in pricing and what about the existing products with old design. Whether they have to call back the products and replace with a new design.
Samsung doesn't have time to go through various steps in design to come up with something not so similar to the iPhone. They only need good, creative designers with a fresh perspective. I don't see why they would add to the price.
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