A US jury has found Samsung infringed Apple’s patents with Android products and awarded $1bn damages. This is 17% of Samsung’s Q2 operating profit and would be crippling to any other Android OEM: it sends ripples of uncertainty through the ecosystem.
We expect the verdict to accelerate IP licensing between Apple and other Android OEMs, with Apple (like Nokia and other IP holders) levying a fee per device, though Google’s ownership of Motorola may mitigate this somewhat.
However, major changes in the Android proposition are unlikely to be necessary, and as long as the iPhone ASP is $650 and Android is $300 or below, market share is unlikely to shift much. Absent a cheaper iPhone, Android will continue to outsell iPhone 3:1 at much lower prices, especially outside the USA.