Tuesday, August 28, 2012

Samsung's loss: What it means to US consumers

Samsung's loss: What it means to US consumers

For now, here's what the verdict means for consumers:
Q. Can I still buy a Samsung phone or tablet computer today?
A. Yes. The jury didn't prohibit sales of the devices. However, Apple is asking a judge to ban U.S. sales of several Samsung devices. A Sept. 20 hearing has been scheduled. If the judge agrees, that would affect many Samsung devices, but not the most recent ones, such as the Galaxy S III and Galaxy Note smartphones. Most of the two dozen devices covered by the lawsuit aren't sold in meaningful numbers in the U.S.

Q. If Apple still prevails, will this drive Samsung out of the phone business?
A. That's not likely. The verdict doesn't apply outside the U.S. and doesn't apply to the latest Samsung devices either. The $1 billion in damages represents 1.5 percent of Samsung Electronics Co.'s annual revenue.

Q. Will this make Samsung phones more expensive?
A. Possibly. Samsung may have to pay Apple substantial royalties on each phone. Consumers will likely pay for that somehow, but it may not be noticeable in stores. Phone companies such as AT&T and Verizon Wireless already subsidize each smartphone by hundreds of dollars to get retail prices down to $99 or $199.

Q. What does this mean for the Samsung phone I already own?
A. This doesn't directly affect phones that have already been sold, even if they are the models that the judge decides to ban. In the long run, it could reduce enthusiasm around Android, the operating system from Google that Samsung uses in the devices in question. That might mean fewer applications for Android from outside parties. That will take years to play out, but could conceivably affect the resale value of your phone.

No comments:

Post a Comment