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Talk of the Day -- Impact of Apple's big patent win on Taiwan firms

Talk of the Day -- Impact of Apple's big patent win on Taiwan firms

Apple Inc. has triumphed over Samsung Electronics Co. in a landmark patent case, with a U.S. jury ruling Aug. 24 that the South Korean technology titan copied the innovative technology used by the U.S. consumer electronics giant to create its iconic iPhone and iPad. The nine-member jury ordered Samsung to pay Apple US$1.05 billion in damages in the latest legal battle between the two tech heavyweights. Apple lawyers plan to formally demand that Samsung pull its most popular mobile phones and tablet computers from the U.S. market, while Samsung is expected to take the case to the U.S Court of Appeals. The final outcome of the case is expected to have a ripple effect on the smartphone market. Some local analysts saw Apple's triumph over Samsung as delivering a fatal blow to the Android camp. According to the analysts, Samsung's legal defeat will make other device makers relying on Android -- a mobile operating system that Google Inc. has given out for free to cellphone makers, including Samsung and Taiwan's HTC Corp. -- more reluctant to use the software at the risk of getting dragged into litigation with Apple. The analysts also predicted that Apple and Microsoft's Windows Phone could dominate the global smartphone market in the future. The following are excerpts from local media coverage of the possible effects of the Apple-Samsung patent battle on Taiwanese firms in the smartphone industry: Economic Daily News: Taiwanese electronics companies in the Apple supply chain are expected to benefit from Apple's huge win in the patent case against Samsung. Market analysts predicted over the weekend that shares of Hon Hai Precision Industrial Co., which assembles Apple's iPhones and iPads -- and high-end components suppliers such as optical lens module maker Largan Precision Co. would rally strongly when the local bourse opens Monday. They also forecast that Microsoft's Windows Phone could emerge as a smartphone contender after Samsung's Android smartphone was found by a U.S. jury to have infringed six of Apple's patents. That means that local technology firms in the Windows camp, including HTC, digital convergence device maker LiteOn Technology Corp. and touch panel maker Wintek International Corp. should post gains in sales from the second half of the year. A number of new smartphone models featuring Windows Phone 8 (WP8), the most advanced mobile operating system Microsoft has ever developed, will hit the market in the coming weeks to compete with the Apple and Android camps. Nokia reportedly will launch a variety of WP8 phones in early September, about a week before Apple unveils its much anticipated iPhone 5. Samsung is also scheduled to launch three WP8 models starting in September. Taiwan's HTC, which has also been troubled by patent litigation with Apple over its Android-featured smartphones, is similarly gearing up to launch its own versions of WP8. Market sources said HTC has worked out new strategies in the face of the increasingly intense global patent battle. In the short term, the sources said, HTC will strengthen partnerships with U.S. telecommunications carriers to secure smartphone orders. The company believes it will be able to win new orders if the U.S. court agrees to Apple's request to ban Samgung smartphones, particularly its popular Galaxy series, in the U.S. market over patent infringements. The San Jose court is scheduled to hear the case on Sept. 20. Over the long run, the sources said, HTC is expected to increase its investment in research and development and expand its patent portfolio. (Aug. 26, 2012). China Times: Li Fang-kuo, general manager of President Capital Management Corp., said Apple's patent triumph over Samsung will benefit the U.S. company the most along with its Taiwanese assemblers and components suppliers. Apple's win, however, will not bring major advantages to Taiwan's smartphone maker HTC, Li said. Samsung has emerged as the world's top smartphone vendor, Li said, and whether HTC sees an increase in its global market share following Samsung's loss in court to Apple will depend on the competitiveness of its own gadgets. National Taiwan University Vice President Tang Ming-je said the next round of the smartphone legal battle will mainly involve Apple and Google. Taiwanese companies should endeavor to innovate and build up their own patent portfolios to survive in the fiercely competitive high-tech market, Tang said. Local vendors in the information and communications technology (ICT) industry can also seek to expand their market shares in China and India, where Apple and other ICT giants have not yet patented their intellectual property. (Aug. 26, 2012). (By Sofia Wu)


Updated : 2020-12-02 08:00 GMT+08:00