The very public court case between Apple and Samsung continues to claim headlines, and the latest statement from a financial expert paints a rather negative picture of Apple. He said that Apple has overstated Samsung’s profit margins on mobile products.
Witnesses for Samsung have testified that Apple should have to pay $422 million (£268m) for infringing on their patents in the US. This affects both the iPad and iPhone. The case has also highlighted how much Apple pay in patent royalties.
Michael Wagner, an accountant who testified yesterday for Samsung said that the Samsung US profits from their smartphones and tablets should be calculated at £12, or $519 million.
This contradicts an earlier statement from Apple expert witness, Terry Musika, who said that Samsung’s US margin was closer to 35.5% on sales from mid 2010 onwards.
Apple want $2.5 billion in damages, although Samsung have been fighting their own points very forcefully in court. Both companies control more than half of the worldwide smartphone sales, although Apple are the clear market leader in the tablet sector.
Apple continue to claim that Samsung have stolen their design and features of the iPhone and iPad – asking not only for billions in damages, but a sales ban on Samsung products.
Samsung claim that Apple have infringed on their patents, including wireless technology.
The court case has revealed that Apple have paid more than $1.4 billion in patent royalties to 90 or more companies, according to Samsung financial expert Vince O’Brien. Apple have sold $12.23 billion of iPhones since September 2010 and American sales for the iPad are $2.29 billion since the end of April 2011.
Samsung seem to be aiming for more realistic damages for breaching of patents, claiming that Apple should pay $22.8 million for ‘seamlessly emailing a photograph’. O’Brien said the amount was so low because ‘They’re one of many features on the phone.”
Samsung financial expert David Teece said that Samsung’s wireless patents in the case are worth up to $399 million.
Kitguru says: Is the case finally drawing to a close?