Apple's patent win isn't enough

Its beef with Samsung won't be over until Apple moves all its chip work to Intel.

By Jim Cramer Aug 28, 2012 11:47AM

Will Apple (AAPL) now use the patent to go after Samsung with everything it has and get injunctions against Samsung to block all selling of the illicit phones? Or will it just demand a huge licensing fee from Samsung and say that if Samsung won't pay it, Apple will move all of its semiconductor work to Intel (INTC), which will have all of the chips Apple needs from the new factories it is opening now?

 

Both are terrific options. But you have to understand that the patent win in itself isn't enough to drive earnings per share, given that Samsung will stall and do whatever it can -- and it can do a lot -- not to play ball the way most companies we know would deal with this.


In other words, we are not dealing with some U.S. company that fears pressure or the Justice Department or the wrath of consumers. We are dealing with a faceless Asian company that can do and has done pretty much whatever it wants or it wouldn't have lost in the first place. No company that did what it did is going to abide by a verdict, especially one that will be viewed as coming from a "backyard" jury, one right in Apple's bailiwick.


So, sure, it can be another reason to buy Apple and another reason to sell Samsung -- although I wouldn't sell Google (GOOG) on it -- but until Apple gets an injunction or pulls its chip biz from Samsung to Intel, I am playing Apple on product intros and earnings only, and so should you.


Random musings: I am continually impressed with Tim Armstrong and what he has done for AOL (AOL). What a godsend that guy is.

 

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long AAPL.

 



More from TheStreet.com

 

5Comments
Aug 28, 2012 12:27PM
avatar

so is armstrong on par with your former crook buddy mozilo at countrywide?

let's not FORGET you touted mozilo just before country wide went broke.

 

in case you FORGOT the sec vs mozilo is going on right now ..case no cv 09 3994 in case you FORGOT

Aug 28, 2012 2:32PM
avatar
What the hell is Apple waiting for is what I want to know. They should have already pulled out of Samsung.
Aug 28, 2012 1:06PM
avatar

cramer the i-phone is stepping all over the patent rights of Xerox

 

if this case holds up then Xerox should own Apple

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

115
115 rated 1
269
269 rated 2
445
445 rated 3
614
614 rated 4
684
684 rated 5
678
678 rated 6
608
608 rated 7
454
454 rated 8
310
310 rated 9
138
138 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ARCPAMERICAN REALTY CAPITAL PROPERTIES Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.