Apple's patent victory against Samsung paves the way for higher gains in market share for the next-generation iPhone, says a Morgan Stanley analyst.
(Credit: Apple)
Apple's iPhone 5 will be one beneficiary of the company's legal win against Samsung.
On Friday, a jury found that Samsung had infringed on several mobile device patents owned by the iPhone maker, awarding Apple more than $1 billion in damages.
The verdict serves as a warning not just to Samsung but to other smartphone makers, providing a boost for the next iPhone, according to Morgan Stanley analyst Katy Huberty.
"Apple's legal win against Samsung increases our confidence in iPhone 5 share gains over the next year, as many smartphone makers may need to re-consider software and design features in current or upcoming smartphones," Huberty wrote in a report out yesterday.
The iPhone's average market share rose only around 2 percentage points over the last two years, according to the analyst. Morgan Stanley had been eyeing a small market share gain next year but now believes its estimate may be conservative in light of the verdict.
And though Apple can certainly put the $1 billion to good use, the money is relatively unimportant compared with the predicament now faced by the company's rivals.
"In our view, the bigger win for Apple is the competitive ramifications if other smartphone vendors experience lengthened product cycles and are forced to alter their software and hardware to ensure unique designs relative to Apple products," Huberty added.
Of course, the legal strum und drang is far from over. A hearing will occur September 20 in which Apple and Samsung will argue over which Samsung mobile products could face a sales ban in the United States. Samsung is also expected to appeal Friday's decision, vowing to take the case all the way to the Supreme Court if necessary.
But the case itself still presents a headache for other device makers. And the outcome is likely to help Apple recapture some market share lost to its Android rivals over the past couple of years.
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