Was $1 Billion even a huge number for Samsung?

Discussion in 'Apple, Inc and Tech Industry' started by Blackberryroid, Aug 25, 2012.

  1. Blackberryroid macrumors 6502a

    Blackberryroid

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    #1
    Apple won $1.05 billion from the Samsung lawsuit. Was it even a huge disaster for Samsung? Would it cause huge damages or is it just a pinch? :confused:

    And for Apple, is this a massive increase?
     
  2. thewitt macrumors 68020

    thewitt

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    #2
    It was the award based on the profit earned for the sale of devices that infringed on Apple's patents. Some claim it was the revenue that Apple would have earned from licensing those patents, but I would not see it as a punishment in either case - more like restitution.
     
  3. Blackberryroid thread starter macrumors 6502a

    Blackberryroid

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    #3
    Yes, but would this be painful for Samsung? Is $1 Billion a huge loss? Will this change Samsung (other than infringing patents) in any way? Will they go back to QWERTY?
     
  4. ixodes macrumors 601

    ixodes

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    Not for Samsung, a company that makes some of the worlds largest cargo ships, has many other diverse large scale enterprises, having been in business since the thirties, this is mere pocket change.
     
  5. Blackberryroid thread starter macrumors 6502a

    Blackberryroid

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    #5
    So Samsung won't learn their lesson. Apple should have demanded for $50 Billion.
     
  6. Compile 'em all macrumors 601

    Compile 'em all

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    #6
    It isn't about money.
     
  7. PlatinuM195 macrumors regular

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  8. ChristianJapan macrumors 601

    ChristianJapan

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    Agree, it's not about money; Apple has enough and they also will not have an interests that Samsung get in trouble. Still a big supplier.

    That's why I would also say: 100mUSD would be enough. Apple won and got satisfaction.

    Now lets move one and see how Samsung and the others come up with exciting own ideas and challenge Apple is a air way.
     
  9. ixodes macrumors 601

    ixodes

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    #9
    Its not about money. There is a fundamental difference in cultures. Many Americans think the USA is all that matters, and in turn miss out on the rich diversity that exists around the globe.
     
  10. thewitt macrumors 68020

    thewitt

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    #10
    What has global diversity have to do with any of this?

    and yes, I'm an American living in Asia.
     
  11. ChazUK macrumors 603

    ChazUK

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    #11
    Injunctions. Workarounds. Tarnished image. The potential damage to Samsung's most successful platform at the moment.

    The outcome goes way beyond the fine.
     
  12. Blackberryroid thread starter macrumors 6502a

    Blackberryroid

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    #12
    So, what's next? Samsung Galaxy S3 to be banned on USA?
     
  13. Mr. Retrofire macrumors 601

    Mr. Retrofire

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    #13
    More than you think.
     
  14. Apple OC macrumors 68040

    Apple OC

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  15. boss.king macrumors 68040

    boss.king

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    #15
    How did you get to that conclusion? What's next is they pay the money and appeal.
     
  16. Blackberryroid thread starter macrumors 6502a

    Blackberryroid

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    That wasn't a conclusion. That was a hypothesis. I'm waiting for an answer if it is the banning of Samsung Galaxy S3.
     
  17. 184550 Guest

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    #17
    As of 2011 Samsung had $384 billion in assets. The only thing it's going to hurt is their ego.
     
  18. benzslrpee, Aug 25, 2012
    Last edited: Aug 25, 2012

    benzslrpee macrumors 6502

    benzslrpee

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    #18
    i agree it's not about the money as $1bn USD is a drop in the bucket for both corporations. Samsung will just report it as an unexpected loss on their income statement. if i remember correctly in 1H12 they already allocated $0.5 bn USD to cover this.

    i also agree that there is a difference in cultures... however i don't understand the "fundamental" part. i'll assume you're alluding to the fact that in Asia copying/taking inspiration is viewed differently compared with the USA?

    will this be a massive increase for Apple? no. they do between $30 - $40 bn a quarter. if Samsung does payout the full $1bn, it'll get reported on their Income Statement as unexpected earnings (or something similar)... it won't impact net sales but it'll give their net income and cash flow a little boost.

    honestly, i'd expect Cook to take the $1 bn and donate to various universities for positive PR + taxation benefits... and sleep with a night light on cause this isn't over by a long shot. chaebols are tough mofos, Samsung will make it their pet project to screw Apple at every turn in Asia, legally or otherwise.
     
  19. Rodimus Prime macrumors G4

    Rodimus Prime

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    at the same time Apple is looking worse and worse as a company as well. They are being view as the worlds largest patent troll by more and more people.

    Apple is making how MS acted in the past look OK in comparision. Apple has taken to acting like a bully to a new level.
     
  20. simsaladimbamba

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    #20
    Short or long system?
     
  21. kdarling macrumors demi-god

    kdarling

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    #21
    Samsung can afford it. Last quarter's profits were almost $6 billion.

    It works out to be $40-$50 per infringing phone, which is a lot. Although less than half of what Apple had wanted, it's still more than even Apple had valued their patent licenses.

    $1 billion award, minus 10%-20% for the lawyers, minus 30%-40% taxes (I don't think Apple can shift this money overseas) = $400 to $600 million for Apple, perhaps.
     
  22. ixodes macrumors 601

    ixodes

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    #22
    The blogosphere is exploding with opinions.

    One that's interesting is the advantage that Samsung gained by being closely aligned with Apple, with all the buzz & attention this is getting.

    All for only $1 Billion. A rather paltry sum in comparison to the vast amount of exposure. Interesting indeed.
     
  23. G51989 macrumors 68030

    G51989

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    1 billion is pretty meaningless, they'll make it back in under a month.

    Kinda like the google FCC fine ;) They made all the fine back in 5 hours ;)
     
  24. viewfly, Aug 26, 2012
    Last edited: Aug 26, 2012

    viewfly macrumors 65816

    viewfly

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    #24
    Since the jury found the copying by Samsung 'Willful' the Federal Judge can triple the damages...so Samsung could be on the line for up to $3 Billion. The Federal Judge will decide next week.

    Just curious, how did you come up with $40-50 per phone? There are about 25 phone involved.

    Of course it will hurt Samsung's image/PR and $$. Even if the $$ amount is the same as one month Samsug profits...would you like to pay 1 months take home pay to someone?

    And then Samsung will have to change some software, or license it from Apple and also there is HTC, and other Android manufacturers to deal with, for Apple's benefit.

    BECAUSE, one of the most important results of the trail is that Apple's patents were held to be VALID. So this is bigger than just $$.

    BTW, of the 300 page questions that the jurors had to answer...they had to be unanimous, that is 9-0 in each question. That is a big hurdle and very firm.

    Regarding the Galaxy S3, it wasn't in the trail, but it will be affected in the future, unless Samsung pays license fees or removes the features. See below the detail results for each phone reviewed by the jury.

    But yes, in some ways this has always been Samsung game plan, as with all developing countries or companies.

    1.Ignore Patent issues, do what you want, knowing that it will be years before it catches up with you.

    2. Build your reputation by copying, get your foot in the door, and pay the fines, if any, later.

    3. The result is that you're copying a winning product, produce your own, and build your business, because you know the legal process is very slow.

    Samsung did the same to Sony in Japan, years ago. That is the kind of company it is....

    BTW, here is the jury make up:

    With regard to their occupations, there's a bike-shop manager, an electrical engineer, a municipal worker, a human-resources consultant, a sales and marketing executive, a social worker, and a network-operations employee.
    One man told the judge that he has experience testing the quality of lunch boxes. Two of the jury members are unemployed.


    http://news.cnet.com/8301-13579_3-57500358-37/exclusive-apple-samsung-juror-speaks-out/
     

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  25. Rodimus Prime macrumors G4

    Rodimus Prime

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    #25
    well remember this case is going to be appealed and there are multiple issues on it that handed Samsung an appeal on a silver platter.

    2. Samsung PR I do not see taking any larger of a hit. No matter the outcome samsung PR took a hit. Now Apple has destroyed a lot of its PR and made it self look like the worlds largest patent troll. Outside of the fanboys Apple is looking worse than MS ever did in how it is acting and that is pretty bad because MS set that bar pretty high.

    It is not over yet. Judge could come back and declared Apple patents invalid and does not matter what the jury said as guess what the patent should never of been granted and as such Apple has no case on it.
     

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