Samsung Electronics shares plunged 7.5%, its biggest single-day fall in four years, after a California court verdict in patent lawsuit against Apple slapped a $1.05 billion (£0.66 billion) in damages on the Korean giant.
Samsung witnessed a $12 billion wipe-out from market capitalisation as its shares were sold off rapidly on Monday. The stock opened 6.8% lower and ended down 7.5% at KRW1,180,000 (£657), posting its biggest single-day percentage drop in nearly four years. Shares at one point fell by as much as 8% to KRW1,173,000 (£653).
Local institutions were big sellers, offloading a net 286,000 stocks. Foreign investors, who hold about half of Samsung shares, and retail investors, were net buyers. The slide in Samsung shares reduced the company’s contribution to the overall capitalisation of South Korea’s main Kospi index to about 15.7% from 17%.
US jurors found Samsung infringed six out of seven patents contested in the case. The company will ask the judge to overturn the verdict and, if she doesn’t, will appeal the case, Mira Jang, a spokeswoman for Samsung, said in an e-mail. The verdict may delay Samsung’s introduction of new products using Android software so it can redesign them. Furthermore, Apple has moved to court seeking permanent US sales ban on Samsung devices such as the Galaxy S and S II smartphones and the Galaxy Tab 10.1 computer.
A ban may undermine Samsung’s grip on a smartphone market and set a precedent for rival handset makers that use Google Inc.’s Android operating system. A hearing of the case is scheduled on September 20 by US District judge Lucy Koh. The judge has ordered Apple to file a one-page chart by today identifying which devices it seeks to ban.