Samsung Electronics Co.’s market value dropped a whopping $12 billion today in lieu of Friday’s ruling which ordered the Korean electronics company to pay over $1B in damages from patent infringement. Despite Samsung’s wide array of products and services, phones and tablets make up roughly 70% of the company’s earnings.
The ruling isn’t the only factor affecting the plummeted shares as Apple is currently seeking a ban on eight of Samsung’s smartphones, among them the widely popular Galaxy S II. In addition there is growing concern that the verdict may lead to Apple bringing on a second lawsuit which could lead to a ban of Samsung’s current flagship phone, the Galaxy S III, which has already accounted for sales over 10 million units since its May debut. Apple is planning to file a sales injunction against Samsung on September 20.
According to an internal memo sent this morning to its employees and the media, Samsung is trying to rally its employees and hasn’t given up the fight. What do you think? Is this a hurdle Samsung can easily jump over? Will this hurt Samsung, Google, and the Android operating system? Tell us what you think!