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Nokia, Microsoft the big winners from Apple's US patent victory

Samsung loss could impact industry

Nokia, Microsoft the big winners from Apple's US patent victory
Nokia's decision to adopt Windows Phone over Android is looking an increasingly sound one owing to Apple's recent patent victory over Samsung in the US.

That's according to various industry analysts, who believe Apple's intention to defend its IP vigorously – Samsung ordered to pay the company $1 billion in damages – could see manufacturers raise Windows Phone's profile in a bid to avoid future lawsuits.

A matter of priorities

In short, Microsoft and Nokia's combined patent library presents Windows Phone as a secure alternative to Android for firms not relishing the prospect of taking on Apple in the law courts.

What's more, given many Android OEMs already pay Microsoft a fee for every device manufacturered, it may be more economical to court the Redmond giant by making Windows Phone handsets a priority.

"I am sure that vendors in the Android ecosystem are wondering how long it will be before they become Apple’s target," said Gartner's Carolina Milanesi on the subject.

"This might sway some vendors to look at Windows Phone 8 as an alternative, and for the ones like HTC and even Samsung, who have already announced plans to bring to market a WP8 device, how much stronger their investment should be."

Making the switch

Windows Phone currently accounts for around 3 percent of the smartphone market according to the most recent indicators, though its hand is expected to surpass that of even iOS in the years ahead.

Asymco's Horace Dediu believes Apple's victory over Samsung could result in Windows Phone gaining vital momentum against Android, too.

"With Windows phones, you’re protected against IP lawsuits because, if anybody sues, they are going to talk with Microsoft," he said.

"Microsoft can do that because they actually do have their IP pretty well sorted out. What Microsoft has always had trouble with is getting these vendors to switch.

"Microsoft can go in to all these accounts and say, 'Let us remind you again of the cost of Android'."

Lumia love

In terms of pure sales, a potential ban on Samsung smartphones in the US could also benefit Nokia as it prepares to launch its new Windows Phone 8-equipped Lumia handsets.

Samsung was Apple's closest rival in the region, but for consumers looking to avoid iPhone, Nokia's Lumia range may become the default alternative if the Korean firm is temporarily removed from the picture.

"A potential sales ban on Samsung products will create some additional room for Nokia as it is preparing to ship the new lineup of Lumia devices over the next couple of months," concluded FIM Bank analyst Michael Schroeder.

[source: Bloomberg]

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.