Apple’s legal pressure reportedly forced Samsung to change its business strategy

Samsung Stock Price

In the wake of its legal battle with Apple (AAPL), Bernstein Research analyst Mark Newman claimed that Samsung (005930) has been forced to divert from its original business strategy, Barron’s reports. In a recent research note to clients, Newman said that while the company has changed, the South Korean manufacturer is entering “a new era of profit maximization.” Newman wrote that Samsung’s smartphones, semiconductors and display products are each set to see profit per share increases of 30% per year from 2011 through 2015. He notes that “possibly in response to Apple’s hostile tactics, Samsung has become noticeably more conservative in capex and more assertive in price negotiations on the component side,” adding that, “profits and returns are now more important than share gains.” Bernstein reiterated its Outperform rating on Samsung shares.

Source:
Barron's
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