Universal Display Corp. shares fall after the Friday Apple-Samsung verdict

The aftermaths of the historic Apple-Samsung ruling is starting to show its vitals. Tablet display manufacturers Universal Display Corp. was the first company affected by the court decision. UDC’s shares fell 8.5 percent on Monday due to the fear that display demand might drop if Android tablets are banned.

The nine-member jury passed the verdict almost solely in favour of Apple on Friday last week and fined the Korean bailiffs in tune of over a billion dollars. Moreover, the panel also banned eight of Samsung’s products in the US.

Although the final decision on the case is still pending until September 20, the effects have already started to show. Federal Judge Lucy Koh will decide on the day whether to uphold the jury decision or increase or decrease the penalty.

The case was Samsung-specific and all the infringements were filed against the company version of the operating system. However, this indirectly involves Google’s mobile operating system Android, which Samsung smartphones and tablets run on. It is possible that all Android-based device makers will eventually be involved in these infringements.

Canaccord Genuity analyst Jonathan Dorsheimer said that UDC’s revenues do not only come from Samsung but almost all other Android smartphone and tablet makers use their technology and components. That is the main reason why UDC shares took a dip.

“As Samsung specifically and to a lesser extent other Android devices represent all of UDC’s commercial revenues, this ruling is clearly negative for UDC,” Dorsheimer said, who has a hold rating on the stock.

The final ruling by Judge Koh will decide whether Samsung sales are halted in the US or not; if they  do US holds a major chunk of global smartphone and tablet market. Although it is expected that future devices from Samsung and other will work around Apple patents but temporary delay in demands can be in billions.

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Posted by Usman Khalid on Aug 29 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.