Lawsuits are a wide card for any company, unless the company knows they have done wrong, because it changes the business model. An interesting article was written in Reuters under www.breakingnews.com. In the article, the author writes Apple was not really going after Samsung, but a bigger competitor – Google. Why google? 68% of Smart phones sold ran on Google’s Android’s software and Samsung uses Android. One of the reasons why the high number is Google receives the bulk of their money through advertising dollars which allows for Android phones to be priced less than Apple. Fortunately for Apple, there is high demand for their phone and iphones are priced up accordingly.
Linking to dividend income stocks, when lawsuits come forward with stocks you have an interest always look at the root causes why is the other company suing? Money by itself while a wonderful result is rarely the reason for the lawsuit, competitive advantage typically plays a higher reason.
There is always more questions than answers, till the next time – to raising questions.