Google Indirectly Hit by Apple v. Samsung Ruling, Android’s Future at Stake

AndroidWith Apple’s recent win over patent infringement by Samsung, the industry is speculating on how the verdict will affect other tech companies. Some analysts are predicting a slow-down in non-Apple mobile device sales due to fears that others will be subject to patent infringements.

Google released a statement to The Verge regarding how they plan to move forward with their Android operating system in the wake of Samsung’s defeat.

The Verge received Google’s statement on Sunday, which clearly shows that the company is keeping its hands clean in the Apple versus Samsung patent infringement verdict. According to their statement, “Most of these [patent claims] don’t relate to the core Android operating system, and several are being re-examined by the US Patent Office.”

MacRumors pointed out that Google had been actively pushing Samsung to change the way it implemented the Android operating system in its mobile devices. “Google is demanding distinguishable design vis-a-vis the iPad,” Google told Samsung in a 2010 memo. “Consider design distinguishability for the items demanded by Google while maintaining the current design, and in regards to each carrier’s demands.”

The ruling may have a ripple effect on the tech industry that will be felt for a long time. According to Apple Insider, Maynard Um with Wells Fargo Securities told investors that he believes the royalty revenue stream for Apple as a result of the ruling could be “highly profitable.” He estimated that every $250 million in royalty revenue to Apple from Samsung equates to approximately 20 cents in earnings per share. He also increased his target prediction for Apple’s stock from $640 – $660 to $740 – $760.

RBC Capital Markets analyst Amit Daryanani believes that the ruling could “create challenges for other smartphone makers who use Google’s Android Mobile operating system.” Michael Walkley of Canaccord Genuity believes that “other Android OEMs, such as HTC, Sony, and LG, will review this patent verdict and potentially alter and delay planned Android smartphones and tablets.”

US Courts found that Samsung infringed on various patents by Apple on Friday and awarded the iPad maker $1.05 billion in damages. Samsung is expected to appeal.

About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik