By The Associated Press
Shares of Nokia Corp.
surged on Monday after a Wall Street analyst said that the Finnish phone
maker could benefit from the $1 billion patent verdict against Samsung.
The decision could delay technology developments for devices that, like
Samsung phones, run Google Inc.'s Android operating system. That could
boost Nokia's line of Windows Phone-based smartphones.
THE SPARK: A federal jury
in San Jose Friday found that some of Samsung Electronics Co.'s products
illegally copied features and designs from Apple Inc.'s iPhone and
iPad.
THE BIG PICTURE: Nokia was
the world's leading mobile phone maker for more than a decade but was
overtaken by Samsung in the first quarter, according to research
firm Gartner. The company has been fighting fierce competition from the
iPhone and Android-based smartphones.
As part of its turnaround
effort, it has based its new smartphone line on Microsoft Corp.'s
Windows Phone operating system, not on the popular Android system. But
sales of phones using Windows Phone have been slow.
THE ANALYSIS: The verdict
against Samsung could give Nokia an edge. The Windows Phone is
substantially different from Apple's iPhone operating system and hasn't
landed in its legal sights, and some Wall Street analysts say that the
verdict against Samsung is likely to slow growth of smartphones that run
on Android.
Phones made by Samsung, HTC, LG and Motorola, now a division of Google, use Android.
In a research note
published Monday, Wunderlich Securities analyst Matthew Robison echoed
that outlook, saying that the $1 billion verdict and possible punitive
damages could slow or postpone Android innovation. And any damage to
Android favors Nokia's smartphone business, he wrote.
Robison also assumes that
smartphone features that were central in Apple's successful patent
claims against Samsung will not be contested by Apple on Windows Phone
products, noting that Apple and Microsoft have reached agreements on
some patents.
"We believe this implies a significant positive shift in application developer sentiment toward Windows Phone," Robison wrote.
But Nokia may face
increased competition from Android phones in markets outside the U.S.,
where prospects for future patent claims by Apple are more remote,
Robison said.
The analyst raised his price target for Nokia to 2.50 euros ($3.13) from 2 euros ($2.50). He kept a "Hold" on the stock.
Nokia did not immediately respond to a message seeking comment.
SHARE ACTION: Nokia's
U.S.-traded shares gained 20 cents, or 6.5 percent, to $3.28 in
afternoon trading. Shares have lost 36 percent of their value this year.
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2012 The Associated Press. All rights reserved. This material may not
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