Saturday 25 August 2012

Apple domination


Read the full article at http://www.cnbc.com/id/48783982


All came on a Friday... Apple won the lawsuit against Samsung... After the 9 men California Jury awarded Apple, the current tech giant, the victory of lawsuit. Apple will be filing a sales injunction against Samsung within the next 7 days.

This the best case scenario for Apple. Getting rid of a major market player in the states. Billions of dollars will be pocketed by Apple. This is monopoly. This will gain Apple the economic moat that any tech company would yearn for. But... this comes at a price.


Lost of choice for consumer

With the removal of Samsung, the consumers in the US will have less products to choose from. Samsung Galaxy is able to complement what Apple is lacking, which is able to target a different segment in the market. The consumers who're more into samsung galaxy products, will definitely be bitching about the verdict...


Potentially higher prices

Without much competition, Apple will be able to monopolize the cell phone market, resulting in higher prices, more margins for the company. And guess who'll suffer, the US citizens. there again, if the pricing is set wrongly, the sales will drop anyway. Not only that, cell phone producers that are stationed in the US will eventually start to lay off staffs, something that US would not want right now, to save cost.

Just maybe... Samsung may make some changes to it's galaxy to prevent any patent infringement so slowly get back into competition... however... Apple will have the upper hand... 


Every choice has it's pros and cons. Although Patent-ship rights protects innovation, however, it can also weed out healthy competitions. It was competitions that drives the economy. Not monopoly.

Perhaps the patent laws is not a one size fits all kind of thing...

It's a good day for Apple investors... but a bad day for the consumers.













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