A surprise decision by the Obama administration over the weekend to veto an import ban on some Apple, Inc. products in the U.S., wiped more than $1 billion of Samsung Electronics Co.’s market value early Monday. The said decision served as a blow to Samsung just as it is in quest of expanding in the U.S. Smartphone market.
The Friday decision of the International Trade Commission gathered attention. The decision is scheduled to decide whether to ban specific Galaxy mobile product imports to U.S. after the Apple’s filed complaint accusing patent violation.
Galaxy S, Galaxy S II, and Galaxy Tab 10.1 are products of Samsung subjected to the decision later this week.
However, the South Korean company refused to comment on what it anticipates from the International Trade Commission this week.
Analysts conclude that chances are low that it may cause an ultimate ban of Samsung products in the U.S.
James Song, an analyst with KDB Daewoo Securities said in the Wall Street Journal, "I think it was a good call from the Obama administration, considering the benefits to consumers. Using the same logic, the Obama administration would have to make it so that Samsung products can continue to be imported in the U.S."
U.S. Trade Representative Michael Froman made the decision to veto ban on some Apple devices, quoting concerns about patent holders gaining “undue leverage” and is potentially harmful to consumers.
Mark Newman, an analyst with Sanford C. Bernstein said in the Wall Street Journal, “"In future, any ban Apple may win, Samsung may also lobby hard for a veto. 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."
