Is Apple EXAGGERATING Samsung’s Success?
A financial expert brought in by Samsung said Apple (NASDAQ:AAPL) widely overstated the profit margins earned by the Korean company for its mobile devices and that the damage amount should be reduced considerably. The issue of damages is a key one because if the nine-member jury finds violation from Samsung, the amount of fine it approves will depend on the Korean company’s total profits from the products in question.
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Michael Wagner, an accountant who testified on Thursday for Samsung, said the company’s U.S. profits from smartphones and tablets named in the case should be calculated at about 12 percent, or about $519 million, according to Reuters. Apple expert Terry Musika had earlier testified that Samsung earned 35.5 percent margins from mid-2010 through March 2012, which translates to $8.16 billion in revenue. Apple is seeking over $2.5 billion in the case.
Wagner said Musika did not take into account various costs, including those associated with marketing. Wagner did acknowledge on cross examination from Apple attorney Michael Jacobs that his information had been prepared by Samsung specifically for the case. “I have no problem with the way they allocated costs,” Wagner added.
The case in the San Jose, California, federal court has Apple accusing Samsung of copying the design and features of its iPad and iPhone. Samsung, which countersued, has alleged Apple infringed several of its wireless technology patents.
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