Aug 16 (Reuters) – A financial expert saidApple Inc has overstated Samsung Electronics Co Ltd’s profit margins for mobile products, an issue thatgoes to the heart of damages in the high profile patent trialbetween the two tech companies.
Michael Wagner, an accountant who testified on Thursday for Samsung, said Samsung’s US profits from the smartphones and tablets targeted in the case should be calculated at about 12 percent, or about $519 million.
Under cross examination by Apple attorney Harold McElhinny, Kim was
asked whether he knew that Google, whose Android mobile operating system runs
inside Samsung devices, asked Samsung to change the designs of its smartphones
and tablets because they too closely resembled those of the iPhone and iPad.
Earlier in the trial, an Apple expert witness testified the US margin was closer to 35.5 percent.
Under questioning from Apple, Teeceacknowledged that he had not seen any evidence that Samsung hadever received money for those patents from another company.
Earlier in the week, Judge Koh threw
out three Samsung phones that Apple claimed violated its patents because
those devices were not sold in the US
Other witnesses presented further evidence in
support of Samsungs argument that Apples patented designs are based on prior
art, or technology that previously existed.
During the trial, now in its third week, Apple has presented testimony that Samsung infringed on a number of
Apple patents in the development of many of its smartphones and tablet computers, thus illegally
copying the design of Apples iPhone and iPad products.
South Korea’s Samsung, which istrying to expand in the United States, says Apple infringedseveral patents, including some for its key wireless technology.
Earlier this week, Apple expert Terry Musika said Samsung earned 35.5 percent margins from mid 2010 through March 2012, on $8.16 billion in US revenue.
Earlier in the week, Judge Koh threw
out three Samsung phones that Apple claimed violated its patents because
those devices were not sold in the US.
However, Wagner testified on Thursday that Musika did not take into account many of Samsung’s costs, including marketing.
Wagner said his 12 percent figure assumes a period beginning in April 2011 for most of the mobile products.
US District Judge Lucy Koh had given each side 25 hours to present evidence.
Samsung began feeling the crunch on Thursday:its attorneys decided not to cross examine two of Apple’stechnical experts at all, citing time limitations.
More financial details about the famously secretive Apple were revealed on Thursday: The company has paid about $1.4 billion in patent royalties to at least 90 companies, according to testimony from Samsung financial expert Vince O’Brien.
Under questioning from Apple, Teece acknowledged that he had not seen any evidence that Samsung had ever received money for those patents from another company.
Apple has sold $12.23 billion worth of iPhones in the US since September 2010, and US sales for the iPad are at $2.29 billion since the end of April 2011, Samsung financial expert David Teece said.
The claim was filed with the Federal Court of Australia in New South Wales, and stated that Apple infringed seven Australian patents related to 3G networking on its third- and fourth generation iPhones and iPad 2 devices.
But this week Samsung presented its own evidence that Apples products violated
Samsung patents.
Not only this, but Apple alleged that Samsung had breached several of its patents, including “slide to unlock” and “edge bump” functions.
Ciaran Song is a business journalist based in Seoul, Korea. Ciaran has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Ciaran spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.
