Shares of Samsung Electronics (Seoul: 005930) plunged nearly 8 percent in Seoul Monday following the company's $1.05 billion loss to Apple (Nasdaq: AAPL), the world's most valuable technology company, in a patent infringement case in U.S. District Court in San Jose, Calif., on Friday.
The plunge trimmed Samsung's market capitalization by $12 billion. Shares fell as low as 1.17 million won (US $1,033) before closing at 1.18 million won.
Meanwhile shares of Apple, of Cupertino, Calif., soared more than $16, to a new high of $680.87 in early Monday trdaing, before easing back to $677.80, up $14.80, after about an hour's trading. Apple's prior record was $674.88 set last week.
"This is a huge victory for Apple," said Jefferies analyst Peter Misek. "Minimum damages are set at $1.05 billion. However, we believe the actualaward will be larger."
Samsung has said it will file an appeal. In South Korea, the electronics giant as well as one of Apple's principal suppliers, sent employees a memo stating, "History has yet shown there has yet to be a company that has won the hearts and minds of consumers and achieved continuous growth when its primary means to competition has been the outright abuse of patent law, not the pursuit of innovation."