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PRINCE MOHAMMED BIN FAHD UNIVERSITY Literature Review to Technology and the Stock Market Apple and Samsung 11/26/2012 Done by: Laila AlOmran 200900296 Hind AlEssa 200900886 Bodour AlShaikh 200900334 Done for: Investments Dr. John Kuforij The technology industry has increased rapidly in the few past years, causing a boom in tech stocks prices. People now rely on technology in almost everything they do, from spelling checks, to saving phone numbers, and now even trading in the stock market. Technology is necessary in our daily lives. Firms today compete to serve the best programs and devices to ease peoples’ lives to generate profit. The two leading firms this quarter of year 2012 are Apple and Samsung. According to Time magazine, Initial Public Offering of technology companies has increased year 2011. U.S faced a drop in overall IPO, which has resulted in tech IPO having the larger market share. On year 2010, 19% of IPO were tech and on year 2011, it rose to 32% (Wolverson, 2011). Market Analysts believe that a new bubble tech bubble is forming. The research question was formulated to question the fact of whether technology growth will keep going or will it burst in the near future? One of the main causes behind technologies fall is bad reputation. As an example of a bad reputation, Samsung and apple lawsuit, it started when apple claims Samsung for copying their design patent on the Iphone. As history shows that Samsung did not really have touch screen before apple invention of Iphone touch. Therefore, since January 2007 Samsung smartphones started to copy Iphone touch screen. Also, they copied their Ipad design and features for Samsung galaxy tab (Sid, 2012). Apple and Samsung verdict run with the result, after a recompense of 1 billion dollars in court (Kravets, 2012). Mentioning that, the Android will easily cost apple more than 1 billion dollars in sales (John C, 2012). The South Korean electronic stocks decreased 7.5 percent, that is approximately 12 billion dollars lose of market value. In contrast, in early trading apple shares went up 2.3 percent. Nokia the unstable phone maker also, moved upward in market share, the reason behind Nokia not getting affected by the lawsuit between Apple and Samsung is, they did not rely on android system. In result, united states the largest global market phones stopped selling Samsung smart phones, as a result of the lawsuit (Kravets, 2012). According to a marketing executive, Park SooGeong, Samsung is well known and widely brand that is respected by the Asian, Asians believes that Samsung had been more innovation than apple with cheaper devices, that are basically similar to apple’s products but with half of apple prices. (Pheneah, 2012) A China-based Smartphone use, Fu Dan, expressed his fears and main concern that apple will become a monopoly and because of the verdict, the consumer options will become limited; at the end customer will not win and putting Samsung at lower position (Pheneah, 2012). Samsung copies many of the iPhone components and designs therefore; a technology columnist said “I consider this situation to be dire for Apple”. When Iphone 5 arrives, it will be crunch time for the company, if this is the end of the line for the iPhone” (John C, 2012).Said Park Hyun from local brokerage Tong Yang Investment “Apple may be the pride of the United States and Americans. But when you think about real economic effects, you can’t say Apple is better than Samsung,’’ (Bobby, 2012). Mark Newman a Senior Analyst, Global Memory & Consumer Electronics at Sanford C. “Samsung's stock is cheaper and therefore more attractive” (Roshan, 2012). Technology today plays a huge role in our everyday life resulting in a high demand for the latest technology. Moreover, the leading firms such as Apple and Samsung even other technology companies stocks are very high relative to other stocks in the market, but will it continue to increase or is it just a boom? Analysts argued on this matter and have not yet reached a conclusion. References: Apple's lawsuit against Samsung.(2012, 7 4). Retrieved from http://www.ijailbreak.com/iphone/apple-vs-samsung-lawsuit-explained-in-three-images/ Dewitt, P. (2012, 7 27). Apple v. Samsung: What the analysts are saying. Retrieved from http://tech.fortune.cnn.com/2012/08/27/apple-v-samsung-what-the-analysts-are-saying/ Dvorak, J. (2012, 7 28). Why apple actually lost to Samsung. Retrieved from http://www.pcmag.com/article2/0,2817,2409010,00.asp Kravets, D. (2012, 7 27). Who cheated whom? Apple v. Samsung patent showdown explained. Retrieved from http://www.wired.com/gadgetlab/2012/07/apple-v-samsung-explained/ Vaswani, R. (2012, 7 21). Is samsung a better bet than apple?. Retrieved from http://www.cnbc.com/id/48734291/Is_Samsung_a_Better_Bet_Than_Apple Wolverson, R. (2011). New Tech Bubble?. Time, 177(24), 18.