“Samsung Electronics Co.’s countersuits against Apple Inc.’s allegations of product copying have expanded to six countries, the company said Thursday, and now include a complaint with the International Trade Commission seeking to stop the sale of popular Apple products in the U.S.,” Evan Ramstad reports for The Wall Street Journal.
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“The suits appear part of a broad strategy by Samsung to fight Apple’s lawsuit over the design of its smartphones and tablet computers with a barrage of litigation around the world,” Ramstad reports. “By doing so, Samsung would build leverage that might force Apple to settle the initial case—which threatens to damage Samsung’s efforts to catch up to Apple in the smartphone and tablet markets, where profit margins are relatively high and market leadership is unsettled.”
Ramstad reports, “The fight is one of many that have been filed over the past year over smartphone and tablet technology. But this one has gained greater attention because Apple and Samsung, while competing in consumer products, have a customer-supplier relationship in which Apple is the biggest buyer of Samsung’s device components, including chips and screens. That has prompted speculation throughout the electronics industry that Apple might try to end its supplier relationship with Samsung. Such a move would prove costly to Samsung’s chip business, which has yielded the company’s highest profits for the past two years.”
Read more in the full article, which includes a video in which The Wall Street Journal’s Technology Editor Yun-Hee Kim talks about what’s at stake and how it could play out with WSJ’s Andrew LaVallee, here.
[Thanks to MacDailyNews Reader “Thumper” for the heads up.]
Biting the hand that feeds, never plays out well.
Nor does killing the golden goose. Silly Samdung.
“and market leadership is unsettled.”
Wrong. Apple is the Leader.
Actually it is a loss for both companies and even more so for consumers .
Apple choose Samsung for it quality products, to settle for a second hand duplicate , is like buying an android phone.
Higher cost for the consumer , and in this fight , we the consumer have no leverage.
If these 2 giant fight to end till the result is divergence , Apple will then have to search for an equal vendor .
And Samsung will need to make more hardware with WP7 , android phones to alleviate the income lost .
Sigh … Expect higher cost
I don’t think it will necessarily work out that way.
Apple will have tech specs that the new vendor will have to demonstrate they can meet, or they don’t get approved. The materials and build specs are determined by AAPL, not the vendor. Expect no change in build quality.
AAPL will have substantial negotiating leverage over the new suppliers — especially since the new suppliers will be taking away significant business from a major competitor, and will be associated with a major customer and a top brand. This will get them greater visibility and new business.
I suspect AAPL will be able to get an even better bill of materials bottom line from a hungrier new vendor than they would with Samsung.
I see this as lobbying and power play. The suits don’t seem to be the ends they are seeking. This is a pissing contest to establish their futures.
It is a standard business practice. Apple will gain upper hand at end regardless whether result is a settlement or a court judgement.
This is a classic battle of money, and how each company has developed diverging corporate strategies. For Samsung it’s all about Samsung wanting to make more money off of the components they sell and the products they sell. Samsung believes it can make more money by building mobile devices and tablets than just being a component supplier.
I agree this is all standard business practice for both companies, Samsung is just retaliating against Apple over the lawsuit filed.
Interesting to see who the Chip Foundries are that are vying for the chip biz.
I bet LG and a few others are making a concerted effort at pitching for the screen biz…
I’d be seriously unloading my Samsung stock, if I were a fund manager.
The only thing really preventing any company from catching up to Apple is lack of talent and imagination, plus a myopic fixation on the bottom line.
Apple has tens of billions and will use it to bury you, Samsung. You should have learned from Google.
“smartphone and tablet markets, where profit margins are relatively high and market leadership is unsettled.”
Really ? does Andrew really believe that ? this guy needs to come out from whatever rock he is under…..
Something to keep in mind – the Wall Street Journal is no longer an independent publication. It is owned by Rupert Murdoch’s News Corp., the same people who bring us Fox News.
Apple has enough money right now to build all the factories it needs. Samsung is not being very smart.
I believe this is Tim Cook’s moment to shine and finally step outside of Mr. Jobs’ long shadow. I doubt Apple will bother playing the good cop, bad cop. I also think, having a $60 billion helps Apple to invest outside of their comfort zone at a short time notice. A good strategic upper hand.
Samsung, I know, has a boneheaded founder who, one more occasions, allows his pride to dictate his actions. He wants SJ to blink first; what he may not realise is that he is asking the growing legion of Apple fans to blink as well. You can steal in broad daylight and expect everyone to pretend otherwise against their better conscious.
This may, in the end, hurt his brand in the worst way possible. I know, I won’t be dispersing my dollars in the Samsung way until they stop their cheating philosophy while bragging about it.
*on
*can’t