The Daily Item, Sunbury, PA

Technology

August 12, 2013

Samsung losses to Apple give iphone maker negotiation edge

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By Jungah Lee and Dina Bass — For both reputation purposes and settlement negotiations, hindering the other company's sales is often more important than money. The $1 billion California verdict equals one-seventh of Samsung's second-quarter profit and less than two weeks' worth of iPhone sales.

Even though Samsung "has successfully convinced consumers that all this business about copying is vastly overdone," that may not help it in the legal arena considering how the two types of patents are treated, said Carl Howe, an analyst with Boston- based market researcher Yankee Group.

"My guess is Apple will amass a lot more bullets before it's over," Howe said. "Samsung's bet is that at the end they'll have to pay, but, in the meantime, they'll have amassed a lot of money and mindshare and market share. And that's why Apple is insisting on import bans."

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