Nokia shares gain near 10% in early trading today, while Samsung, HTC and ZTE slump


Today it is not a good day to be an investor in a company producing Android products. Samsung’s shares plunged by 7.5% after their epic defeat against Apple in court on Friday, wiping out $12 billion in market value from the Korean giant.

Fears are growing the company may face a wide injunction against even their flagship products, with USA generating up to a 1/3 of their revenue.

“We expect there is a two-thirds chance of an injunction against Samsung products,” Peter Misek, an analyst at Jefferies & Co. Inc., wrote in an Aug. 26 report.

The decision has not left other Android OEMs unaffected.

Two of the patents in the case brought by Apple against Samsung are also part of Apple’s case targeting more than a dozen HTC devices before the International Trade Commission.

“Although this situation will be a short-term relief to HTC if Apple successfully bans Samsung’s questionable devices from the U.S. market, we see increasing litigation risks for HTC,” Jeff Pu, who rates the stock reduce at Fubon Financial Holding Co., wrote in an Aug. 27 note.

HTC shares dropped 1.9 percent to NT$257.50 in Taipei trading, while ZTE Corp., another Android-phone maker, declined 7.1 percent in Hong Kong trading.

Apple was up 2.6% so far today, but the real winner has been Nokia’, who’s shares have climbed as much as 11 percent in Helsinki trading today, meaning the company’s share price has more than doubled since its historic low only 2 months ago.

Nokia is on the verge of announcing a new range of Windows Phone 8 products, and I suspect the uncertainty around Samsung’s Android devices will make even carriers more cautious about promoting them and more enthusiastic for Nokia’s Windows Phones.

Either way, it seems, at least today, it is a good day to be a Nokia investor.


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