Apple lawsuit against Samsung deemed no threat to supply

“Apple’s lawsuit against one of its most critical suppliers, Samsung Electronics, does not mean that the complex relationship that lies behind two hit technology products is in immediate jeopardy,” Christian Oliver, Robin Kwong, and Joseph Menn report for The Financial Times, citing “people with knowledge of the situation.”

“The suit filed on Friday in a California federal court accuses Samsung, in its smartphones and Galaxy Tab tablet, of apeing the appearance of Apple’s iPhone and iPad, for which another arm of the South Korean manufacturer supplies chips and storage,” Oliver, Kwong, and Menn report. “But Apple has locked in long-term supply deals with Samsung and neither side would benefit from breaking that connection.”

Oliver, Kwong, and Menn report, “A public spat between the groups could lead to Apple seeking to replace the Samsung-made chip in the iPad 2 with processor chips from Taiwan Semiconductor Manufacturing Company, analysts argue. But they add that Apple would also run big risks to its supply chain by shunning Samsung.”

Read more in the full article here.

MacDailyNews Take: Certainly Apple wouldn’t unduly risk their iOS device business without having carefully thought through the consequences of suing Samsung and the possibilities for alternate component suppliers/foundry options.

Related articles:
Apple v. Samsung: a complete lawsuit analysis – April 19, 2011
Samsung vows to countersue Apple over patent suit – April 19, 2011
Why Apple is suing Samsung and why Samsung will likely settle – April 19, 2011
Apple to Samsung: ‘Blatant copying is wrong’ – April 18, 2011
Apple sues Samsung for attempting to copy look and feel of iPhone, iPad – April 18, 2011


  1. Come on. Stop treating corporations as if they’re people. Sure, if this was a personal relationship, the other party might take offense. But this is business, and lawsuits are business as usual. Samsung is not going to give up one of their biggest customers.

    1. “One of” their biggest? Pretty sure that’s an understatement. I’d be willing to bet no other customer spends more than Apple’s nearly $6 billion dollars with Samsung; that’s nearly 10% of their total revenue.

  2. There is no need for Apple to “prepare” for fight with Samsung since the latter absolutely can not sabotage Apple even if it really would want it. If Samsung would do something, then:
    1) contract fines are astronomical;
    2) 10-15% of turnover is going to vanish;
    3) like $1 billion of net profits per year will vanish;
    4) huge lay offs in Samsung are inevitable.

    In the end, problems with Apple on component parts will cost Samsung billions.

  3. @trondude
    Concerning the galaxy phone and tablet, I heartily agree. But note that Samsung has more U.S. technology hardware patents than any foreign company (around 100,000 patents),
    including some 1,000 involving every aspect of cell phone technology. They employ around 4000 ph.d.s in their research center and have some 450 in the IP department alone. In short, you may be underestimating Samsung’s ability to wage an IP war against Apple, whom they can portray (fairly or not) as “copycat losers” who imitated Samsung-owned hardware technology. In short, I’m an extreme Apple fan, but don’t underestimate Samsung.

    1. And apple came up with what?

      Lol stolen ideas from xerox?

      Don’t be a fool and make samsung a bad company when the company ur defending stole ideas from other companies.

      Im not saying that samsung is perfect but to defend apple on their wrong doings doesnt make things right.

      1. “stolen ideas from xerox”

        You are ignorant. And, because the Internet exists, you have no excuse for your ignorance, and so are pathetic in trying to spread your ignorance. It is well-dcoumented that Apple PAID Xerox for the privilege of gaining access to a few ideas (to add to the many ideas Apple already had). What they saw was interface research, in an area where Xerox had no plans to sell a product.

        If that source isn’t enough for you, go Google a more detailed history yourself. Stop spreading stupidity.

        Also, your logic is inconsistent. You say that people shouldn’t defend Apple by pointing out wrongdoings by Samsung immediately after you try to defend Samsung by pointing out your (false) belief that Apple did something wrong. All around, a more-than-worthless (contributes negative value, not just zero) post.

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