25th August 2012  Mobile Stocks React to Apple Patent Victory.

While markets fell slightly on Monday there was a flurry of activity in the world of mobile phone stocks.

On the first day of trading after its patent victory over Samsung (005930), shares in Apple Inc. (AAPL) set another all-time high, rising 1.88% to trade above $675 for the first time and reaching as high as $681 in pre trading, further cementing its position as the most valuable company in the world. Apple has now requested a preliminary injunction against the sale of eight Samsung products which were deemed to infringe Apple patents, the aim of which could be to hit any future products which are similar with injunctions.

For its part Samsung took a hammering, losing 7.45% on the Korea Exchange and Android OS developer Google Inc. (GOOG) fell 1.39% as it prepares to both fight and be fought by Apple. Dutch semiconductor manufacturer ASML Holdings(ASML) announced that Samsung would be investing close to $1 billion and taking a 3% stake in the company. Interestingly Samsung is the sole supplier of micro-processors to Apple. While its handset operations have taken a massive hit Samsung will still seek to develop its components operation and this is an excellent deal to do so. The investment however, topped with the $1 billion fine it faces could see end of year profit margins tighten and have further effects on the stock price down the line. InvenSense Inc. (INVN), which manufactures motion sensing hardware for Galaxy handsets was also hit hard, falling 3.12%.

On the opposite side of the fence shares in Nokia (NOK) jumped 5.5% in anticipation that any hindrance to Samsung could be a benefit to them. Blackberry maker Research In Motion (RIMM) spiked early in trade but continued its recent downward slump, still closing out the day up 1.87%.

Either positively or negatively shares in companies related to the mobile phone hardware and componants industry moved vastly more than did the main markets, with the Dow Jones dropping 0.3% and the S&P 500 dropping just 0.1%.

Handset manufacturers and anything not related to Samsung won and won heavily with investors seeing the smartphone landscape ripped open and opportunities presented to embattled companies like Nokia to retake market share. Caught in the middle of the patent war fallout however was ARM Holdings (ARMH) whose ARM Cortex-A8 is used in both Apple and Samsung products, trading down 0.86%.