Why Losing $1B to Apple Still Makes Samsung a Winner

According to a jury, Samsung violated 6 Apple patents and as a result awarded over $1B to Apple in their verdict. Most people would consider that a heavy loss, but in reality, it's a win for Samsung.

How can losing $1B be a win you ask? Samsung mobile phone revenue was roughly $27B in 2009, the year before Apple claims its patents were being infringed. As of 2011, Samsung's revenue was just over $48B, an increase of nearly 80%. The $1B penalty represents only 5% of that increase, and only 2% of 2011 revenue. I don't care who you are, if you can increase sales $21B by spending $1B, you'll do it every day and twice on Sunday.

Looking back, don't you think Nokia, RIM and other manufacturers wished they had copied Apple? Instead they're looking up at a much stronger Samsung. Granted, Samsung could have avoided even the $1B bill by improving on iOS instead of copying it, but that's water under the bridge.

Moving forward we'll see how Samsung deals with the fallout now that they will have to redesign their phones to avoid infringing on the patents, so their position as number 2 isn't set in stone, but I doubt you'll find many executives at Samsung who regret what's transpired.