Samsung loses US$1.05 billion in market value after Obama's iPhone, iPad ban veto
On Monday, more than US$1 billion of Samsung's market value was wiped out. This was after the Obama administration vetoed an import ban on Apple Inc's foreign-made merchandise in the US. The decision hurt the South Korean corporation just when it wanted to expand its footprint into the smartphone market of the US.
Early Monday, Samsung fell 0.6% to KRW1,278,000 equivalent to US$1,137. This removed US$1.05 billion in the market capitalization of South Korea's largest corporation by total market value. Samsung's share has fallen 22% since the first month of 2013. Last week, following the release of the company's earnings report, its stock plunged 0.5% to KRW1,303,000. Samsung's stock could potentially drop even more if the International Trade Commission decides to ban the imports of some Galaxy handsets in the US on August 9. Apple Inc filed a complaint that accused Samsung of patent violation.
"In future, any ban Apple may win, Samsung may also lobby hard for a veto," Sanford C. Bernstein & Co. analyst Mark Newman said. "If the presidential veto appears to be used to give advantage to Apple over Samsung, this would be a dangerous precedent that could upset the current good trade relations between the U.S. and South Korea."