Samsung, a major South-Korean manufacturer of computer electronics and Apple’s biggest rival, is indignant at President Obama’s decision to veto a potential ban for iPhone 4 and 3G-capable iPad 2 models in the USA.
After the decision, Samsung’s stock lost $1,05bn of its market capitalization after the price went down by 0,6%. Obviously, such a ban could seriously affect Apple’s market capitalization, thereby helping its rivals (including Samsung) to consolidate their position in the USA, simultaneously increasing their market capitalization. However, since Obama and his administration decided to interfere, this is good news for Apple and band news for Samsung. That is why traders decided to abandon Samsung’s stock, considering its relative weakness.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of Samsung’s stock:
