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Apple & Samsung: The Other Winners & Losers (Update 1)

Google's response and updated share prices have been added to this story.

NEW YORK ( TheStreet) -The effects of Apple's (AAPL - Get Report) victory in its patent battle with Samsung extend way beyond the two smartphone and tablet rivals, as evidenced by the sharp share movements in a number of related tech stocks on Monday.

Clearly, the shockwaves from the Apple/Samsung battle are resonating in Silicon Valley and beyond. Late on Friday, a jury in San Jose, Calif. awarded Apple $1.05 billion in the high-profile case, ruling that Samsung had infringed six of Apple's patents.

While Apple basks in its courtroom triumph, however, Samsung has described the ruling as "a loss for the American consumer."

Here's a list of the big winners and losers in the case.


Apple, obviously, has gained the most from the court's ruling, bolstering its standing in the increasingly aggressive world of tech patents. "We believe this is a huge victory for Apple," noted Peter Misek, an analyst at Jefferies, in a note released on Monday. "This is positive for Apple, but would expect a settlement following an unsuccessful appeal by Samsung."

Apple will undoubtedly see the verdict as slowing Samsung's phenomenal rise in the smartphone market. During the second quarter, Samsung's global smartphone market share was 32.6%, up from 17% in the prior year's quarter, according to tech research firm IDC. Apple, the no. 2 smartphone player, had 16.9% of the market, down from 18.8% in the prior year's quarter, although actual units shipped increased 27.5% year over year.

Samsung's unit shipments, however, climbed a massive 172.8% year-over-year.

Brian White, an analyst at Topeka Capital Markets, said the case boosts Apple's reputation for stretching the technology envelope.

"We believe this verdict enhances the Apple brand as 'the innovator' in the smartphone and tablet markets at the expense of Samsung electronics that some will now view as the 'imitator', while also providing a strong disincentive for future 'copying' of Apple products," said White.

The result bodes particularly well ahead of Apple's rumored launch of its next-generation products, according to Michael Walkley, an analyst at Canaccord Genuity.

"Apple has an even stronger competitive market position ahead of its iPhone 5 and other anticipated product launches," he wrote, in a note. "We believe Apple is well positioned for very strong fiscal 2013 sales and earnings growth driven by new product introductions, including the recent refresh of the MacBook Air and Pro series, an LTE iPhone 5, iPad Mini, and potentially Apple TV in fiscal 2013."

Set against this backdrop, Apple shares closed up 1.85% at $675.48 on Monday.

It's not just Apple, though, that stands to gain from the court's decision.

"We see the verdict as positive for Qualcomm (QCOM - Get Report) should U.S. carriers promote non-Samsung devices," noted Romit Shah, an analyst at Nomura Equity Research. "The company has 50-55% baseband market share overall, but only 10-15% share in Samsung smartphones."

Qualcomm closed down 0.1% at $62.37 on Monday.

The wireless chip maker's baseband technology, which is found in Apple's iPhone, essentially functions like an antenna for smartphones.

Shah also sees the latest development in the Apple/Samsung fight as a plus for another chip maker, Nvidia (NVDA - Get Report). "We believe Nvidia could benefit from the launch of upcoming HTC One mobile device at T-Mobile," he wrote. "Considering the likely injunction of the Galaxy S 4G and Vibrant, we would expect T-Mobile to promote HTC devices more aggressively."

There have recently been rumors that T-Mobile will launch an HTC One X+ smartphone. HTC unveiled its original One X, its first with Nvidia, at the Mobile World Congress event earlier this year. The One X is powered by the chip specialist's Tegra 3 mobile processor.

Nvidia shares ended the day down 1.71% at $14.35.

An HTC spokeswoman said the company does not comment on rumors and speculation. T-Mobile also declined to comment.
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