Samsung's share price fell sharply by 0.6% to KRW 1,278,000 (approximately USD 1,137) per share on Monday following the unexpected veto by the Obama administration last Saturday of a ruling that would have banned the import and sale of certain iPhones and iPads in the U.S., wiping USD 1.05 billion off its market value.
The U.S. government's decision to overturn the sales ban dealt a heavy blow to Samsung. As Apple's main competitor in the global smartphone market, Samsung is actively trying to expand its presence in the U.S. market.
This Friday, the U.S. International Trade Commission (ITC) will make a ruling on whether to ban the import of some Samsung Galaxy mobile products into the United States. The products involved include some older Galaxy smartphones as well as the Galaxy S, Galaxy S II, and Galaxy Tab 10.1 tablets, while the Galaxy S III and Galaxy S4 are not included in the potential ban.
Samsung decided to comment on Monday on the ruling the ITC is expected to make this week.
However, analysts pointed out that the likelihood of the ITC making a ban ruling is low because it could lead to a complete ban on Samsung products in the U.S. market. Analyst James Song from Korean brokerage KDB Daewoo Securities said: "In consideration of consumer interests, I believe the Obama administration made the right decision. The same logic applies when deciding whether to allow Samsung products to continue being imported into the U.S."
Analyst Mark Newman from U.S. investment bank Sanford C. Bernstein noted: "In the future, whenever Apple wins a sales ban against Samsung, the latter will strive to overturn the ban through lobbying efforts. If the president's veto is perceived as favoring Apple, it would send a very dangerous signal. Such precedents could also cast a shadow over the currently good trade relations between the U.S. and South Korea."