Nine jurors in the Federal Court of the Northern District of Southern California handedApple a big victory against Samsung on Friday evening. The jury awarded Apple $1.05 billion in damages, found all seven of Apple’s patents valid, found Samsung infringed six of Apple’s patents, and found Apple not to have infringed on any of Samsung’s five patents.
Here is how this verdict and award may prove to be worth $450 billion to Apple.
Kicking Google In The Teeth
This verdict kicks Google’s Android in the teeth. The result will be higher costs for phone manufacturers who use Google Android and some slowdown in the rapid expansion of Android Juggernaut.
I estimate that slowing down Android juggernaut is worth $150 billion to $200 billion to Apple over the next 10 years.
Status Symbol
Apple products have become status symbols especially in emerging markets such as India and China.
A lot of money has been made in China and India very quickly. These newly rich Chinese and Indians are no different than the newly rich in the western world.
The newly rich feel insecure or feel the need to display the fact that they have arrived. One of the means in China to fulfill this need is buying Apple products.
The difference from the western world is that in China and India there are a lot more newly rich than in the western world.
This verdict strengthens Apple’s brand image.
Our estimate is that the strengthening of Apple’s brand image is worth about $100 billion over the next 10 years.
Aspirational Buyers
Aspirational buyers who previously had to stretch to buy Apple products mostly settled to buy products from competitors that looked similar to Apple products…Read more at Forbes
