Aug. 17 (Bloomberg) -- Samsung Electronics Co. fell the most in more than seven weeks in Seoul trading after it rested its case in a patent-infringement trial with Apple Inc. in California.
The stock of the world’s largest maker of TVs and mobile phones dropped 3.7 percent and was the biggest drag on the MSCI Emerging Markets Index. Samsung, a key supplier and competitor of Apple, had rallied 23 percent from July 12 through yesterday as it forecast higher demand for panels and handsets, and retained its position as the world’s biggest phone seller.
Samsung rested its case in the trial after putting on witnesses who said Apple would owe the Suwon, South Korea-based company as much as $421.8 million in royalties. Apple sued Samsung in April 2011, accusing it of copying patented designs for mobile devices such as iPhones, and the South Korean company countersued.
“There seems to be some profit-taking interest, especially as the recent gain has brought the stock close to its previous high,” Song Myung Sup, an analyst at HI Investment & Securities Co., said by phone today. “Uncertainty over upcoming rulings on legal battles with Apple is also weighing on sentiment.”
Apple accounts for about 9 percent of Samsung’s revenue, making it the company’s biggest customer, according to a Bloomberg supply-chain analysis. Samsung is the exclusive manufacturer of Apple-designed chips for iPhones and iPads.
The world’s biggest maker of dynamic random-access memory chips, also dropped on speculation that this month’s declines in prices for the computer-memory devices may be more than expected, Lim Dori, an analyst at Shinyoung Securities Co., said. Samsung rose to 1,348,000 won on Aug. 10, after hitting a record 1,410,000 won on May 2.
Samsung slid to 1,295,000 won at the close of trading in Seoul today, the biggest decline since June 25. The stock has advanced 22 percent this year, compared with a 6.6 percent gain in the benchmark Kospi index.