The whole mobile sector is feeling the shockwaves of Apple's major legal win against frenemy Samsung regarding its copycat ways. Beyond the headline players of Apple, Google, and Samsung, there are numerous other winners and losers that are likely to see some fallout from the monumental decision, for better or for worse.
One of the more obvious winners to the Android setback is Microkia. The potential legal ramifications that other Android OEMs may now perceive provide an incentive to give Microsoft's
|Windows Phone 7 / Windows Mobile||2.3%||3.5%|
Source: IDC (August 2012).
Android and iOS continued to grow their collective share to 85% in the second quarter, while Research In Motion
Microsoft's partner in crime Nokia
Universal Display: loser
OLED specialist Universal Display
Meanwhile, Apple currently doesn't use OLED technology in any of its products, largely because of capacity and supply constraints with the newer technology, so the net result on UDC's top line could potentially be very negative.
However, device makers are typically able to quickly design around patents, including when Samsung slightly modified its Galaxy Tab 10.1 last year to avoid Apple patents and a related sales injunction in Germany. Android OEM HTC also pulled a similar move this year after Apple scored a separate legal victory. Assuming Samsung is able to redesign around Apple's patents rather quickly, which shouldn't be a problem for one of the largest electronics conglomerates in the world, the long-term effect on UDC should be negligible.
Within the gadgets, baseband king Qualcomm
To the extent that the smartphone market shifts toward devices where Qualcomm enjoys more baseband wins, the company stands to see some revenue gains. On the flipside, Qualcomm also supplies processors to Samsung, so you'd need to look at the effects on both the baseband and processor businesses.
Its newest Snapdragon S4 mobile processors are found in some of Samsung's smartphones, including its current flagship Galaxy S III, which wasn't included in the lawsuit. The Galaxy S II, which was included in the lawsuit, also carries an older Snapdragon S3, so falling sales in certain Samsung devices could be somewhat of a double-edged sword.
With as quickly as the smartphone market is growing, there's a lot at stake for these companies. Clearly, this was a big win for Apple, which is why Apple's run isn't over yet. Grab our brand-new premium report on Apple and get free updates at no additional cost.
Fool contributor Evan Niu owns shares of Apple, Qualcomm, and Universal Display, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Apple and Universal Display. Motley Fool newsletter services have recommended buying shares of Microsoft, Universal Display, Google, and Apple, creating a synthetic covered call position in Microsoft, and creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.