Is Apple’s Victory a Loss for Consumers?

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Finally, more than a month after the Samsung-Apple showdown kicked off, a decision is in: Samsung will have to pay Apple (NASDAQ:AAPL) more than $1 billion for patent infringement.

And that’s just the beginning.

Apple and Samsung are battling in more than 50 lawsuits in ten countries, and the effects of this one could extend beyond the obvious. Other Android-makers and also American consumers are likely to feel the effects of the ruling.

To start, Friday’s ruling included patent violations for three features common in mobile devices — pinch-to-zoom images, tap-to-enlarge text and the touch function to scroll through pages, USA TODAY reports.

Off the bat, this means that many Samsung devices could disappear, including the Galaxy Tab 10.1 and possibly the Nexus S 4G and S II.

But it could also be a problem for Android-based phones from all makers — especially since there is speculation that the end goal of Apple’s patent wars may be to take down the entire Google (NASDAQ:GOOG) Android operating system.

And regardless, consumers could already face higher costs for the same devices, or may have to adapt to a new format and features. In fact, even consumers already owning such products could be forced to download updates that re-work certain features in order to comply with the ruling.

For the most part, though, people with Android devices have no reason to worry — their devices will keep working and the biggest impact will be felt in the future.

Still, in the big picture, the verdict could be seen “as a loss for the American consumer” as opposed to “a win for Apple,” Samsung said recently.

But the ruling is indeed a clear victory for Apple — and is just the latest of good news for the company. AAPL shares have gained more than 70% and recently soared to a U.S. record market cap.

The company, which is set to release the highly anticipated iPhone 5 and iPad mini in the coming months, is now trading at nearly $680.

And on top of the $1 billion settlement Apple is set to receive, the ruling will also likely dismantle — or at least scare — any other copycat companies.

And while Apple does have problems of its own, such as the tablet is cannibalizing Mac sales and possible trouble brewing in China, the company definitely has a lot to celebrate. For consumers, though — especially those that are Android-users and lovers — the same might not be true.

As of this writing, Alyssa Oursler did not own a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2012/08/is-apples-victory-a-loss-for-consumers/.

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