In our August 10th report on Apple Inc.’s (AAPL) decision to cut the price of the iPhone devices available at its Apple Stores retail outlets by $50, we noted that Samsung (SSNLF.PK) has allegedly been infringing on Apple’s patents. Because Samsung allegedly infringed the iPhone’s patent and didn’t have to go through the trouble of researching and developing an original device, it can afford to sell its devices at a lower price than Apple to mobile carriers, and the carriers can sell Samsung Galaxy POS line of smartphones to consumers at a lower price. We found that Verizon Wireless sells the iPhone 4S with 32GB of data for $299.99 with a two year contract versus $249.99 for the Samsung Galaxy S III with 32GB of data. We found the same $50 difference for the iPhone 4S with 16GB of data versus the Samsung Galaxy S III with 16GB of data. On August 24th, a California Jury found Samsung guilty of infringing a majority of Apple’s patents and awarded Apple $1.05B in damages.
On a worldwide basis last quarter, Samsung sold 52M of its POS smartphones versus 26M units sold for Apple’s iPhone device. However, Apple maintains a commanding market share with regards to the Big Three Mobile Carriers in the US (AT&T (T), Verizon (VZ) and Sprint (S)). AT&T sold 3.7M iPhones in the most recent quarter, Verizon sold 2.7M and Sprint sold 1.5M iPhones.
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