Smartphone Wars: Who wins and who loses from the Apple v. Samsung patent verdict

“As the dust settles in the aftermath of the historic Samsung – Apple court decision, where the maker of the iPhone was awarded a $1 billion payment for pattern infringement, the legal battles, and the “operating system wars” in the smartphone industry, are just getting started,” Agustino Fontevecchia reports for Forbes. “While Apple is likely to push to get Samsung’s products temporarily off the shelves, it will likely pursue legal action against other handset makers, RBC’s equity research team noted. They suggest buying Qualcomm and looking at Nokia and Microsoft, which should benefit as Samsung, and possibly Google, suffer.”

“The jury’s decision will help Apple sustain its ‘dominance over hand set vendors,’ RBC said, especially those that are Android-based. The analysts now expect Apple to pursue similar action against the likes of HTC and LG, and possibly others,” Fontevecchia reports. “Furthermore, the company founded by Steve Jobs will probably look to get Samsung’s products temporarily removed from shelves, a move Samsung will appeal.”

MacDailyNews Note: Apple has already moved to do so. See: Apple lists which Samsung products it will seek to ban from U.S. sale.

Fontevecchia reports, “Microsoft and Nokia came out unscathed and possibly emboldened. Adoption of Windows-powered phones remains fairly limited (market share is about 4%), in part given to their slow roll-out of the product, for which the company had been criticized… It will also empower Apple, which is already the world’s largest publicly traded company.”

Read more in the full article here.

MacDailyNews Take: Windows Phone will be popular. Over time, it’ll eat the lunch of the increasingly fragmented, increasingly insecure, and increasingly costly Android (losing patent infringement lawsuits and dropping features/paying royalties to multiple IP owners will do that to you).

The not-iPhone world will begin to dump Android and move to Microsoft’s mobile OS offering because it will eventually cost less, work better, and come with far fewer legal issues. In the iPhone wannabe market, it’s already happening (Nokia, for example). We expect the same to happen in the iPad wannabe market, too [with Windows 8/RT]. Google and Microsoft will long battle each other for the non-Apple markets and that’s a much better scenario for everyone than having a single ripoff artist flood the market with fragmented, insecure, beta-esque, mediocre-at-best products. Google’s attempt to be the next Microsoft is doomed.

This, of course, will also impact Google’s search business. Apple’s Siri will increasingly deliver info to users sans Google and Microsoft will, naturally, use Bing for their search. As we’ve said many times in the past: “Google will rue the day they got greedy by deciding to try to work against Apple instead of with them.”

The bottom line: We’d rather see a company trying unique ideas, even if – shockingly – it’s Microsoft, than the wholesale theft of Apple innovations that we’ve been seeing for over four years now. Don’t steal IP. Even worse, don’t steal IP and “claim to be innovators.” We have no problem with any companies that attempt to compete with Apple using their own unique ideas and strategies.MacDailyNews Take, October 27, 2011

Related articles:
Apple shares hit new all-time intraday and closing highs – August 27, 2012
Jefferies: Samsung verdict a ‘huge victory for Apple’; reiterates ‘Buy’ rating, $900 target price – August 27, 2012
Apple kicks Google’s Android in the teeth; $1.05 billion jury award may really be worth $450 billion – August 27, 2012
Samsung vows to keep fighting, calls U.S. verdict ‘regrettable’ – August 27, 2012
Tim Bajarin: Apple could eventually dump Samsung as a component supplier altogether – August 27, 2012
The Apple verdict and the challenge of innovation; It is easier to follow than lead – August 27, 2012
After Apple’s thermonuclear victory over Samsung, Google may be next – August 27, 2012
Some hope Apple’s sweeping patent victory against Samsung, Android is Pyrrhic – August 27, 2012
Samsung shares drop $12 billion after Apple’s court victory – August 27, 2012
Apple v. Samsung jury: Google email iced it for Apple – August 26, 2012
Tim Cook memo to Apple employees: Court victory over Samsung ‘is about values’ – August 26, 2012
Jury finds Samsung willfully violated Apple patents – August 24, 2012

18 Comments

  1. That’s easy, winners win and losers lose.
    According to many studies, people who buy iPhones are successful people, and people who buy android are just fanboys sucks in their mama’s basement with no money to buy apps or click on the ads.
    There are some successful people using android phones.. those so successful with no time to read a little bit and gave their self a respectful opinion about a phone so they just go with the one the sales man tell him (Right AT&T?)

  2. Those companies that tried innovate smart phones on their own had their head handed to them by Apple. In other words, they didn’t sell anything.
    Samsung chose to instead blatantly copy Apple, and sold a boatload of phones. They know that copying Apple works. Court cases are just a hiccup compared to the real money you can make by looking like Apple.

  3. I’m glad it wasn’t another 1980’s Apple vs. Microsoft ending; that lead to the dark-ages of computing. I’m sure they’ll make mistakes along the way, but Apple has a track-record of fighting for consumers and making great products. Now we sort-of have a chance to see what would have happened had Apple not lost back then.

    1. Agreed, but I wish Apple wouldn’t sit on iOS in its crippled form.

      I still cannot perform a simple task, such as locate an app on my iPad to delete it, if it is in one of the dozens of folders amongst the 500+ app.

      I have to manually go thru 500 apps in all these folders to find it.

      THAT IS JUST BULLSHIT! HORSESHIT, CRAP, STUPIDITY… AND MORE

      1. Seriously… Try the find/search option to search for your app. Launch it. Then tap-hold-click x. 20 seconds tops if you’ve got arthritis. Let’s not exaggerate. iOS has flaws, but let’s clearly define them, not make up stuff.

  4. My opinion on what Apple will do going forward differs somewhat…

    I think Apple WANTS Google’s Android to be the main “non-Apple” mobile platform. So far, Apple has taken legal action against mobile phone makers that use Android, not Google itself. That is a smart strategy if Apple wants the platform to limp along and even grow, but not die.

    Why would Apple want Android to continue as the “other” mobile platform? Because Android, as a platform, is utterly predictable and “safe” as competition. Google is not going to do anything with Android that Apple has not already done in iOS. In a market dominated by Apple and a collective of Android device makers, Apple clearly wins by selling as many devices as it cares to produce (at a very healthy profit margin). In an Apple versus Android world, Apple wins and continues win for many years to come, and makes most of the available profit in the mobile phone industry.

    Having Android as #2 keeps other potentially more dangerous platforms, such as Windows Phone, from becoming a threat. The existence of Android already helped kill off Palm (WebOS) and is in the process of doing the same to RIM. If Microsoft did not have deep pockets, Windows Phone would probably be gone by now (or would never have existed). Yes, iPhone had something to do with it, but it is really the “Android option” as the main alternative to iPhone that keeps other platforms down. This is also true in tablets, with $199 Android-based tablets making it difficult for Windows 8/RT tablets to gain a foothold.

    So, Apple is using Android as sort of a barrier to entry of other platforms. If any one Android device maker becomes too strong by copying Apple products too closely, Apple takes legal action against that one player, but not against the overall platform.

  5. WebOS was a great smartphone OS. It just ran on substandard hardware. The OS demanded more than palm put into the phones. HP could have done great things by licensing it out but sadly they threw it away.

    FireFox OS looks very promising too.

    There are plenty of SmartPhone OSes that could compete with iOS if they had the right hardware driving the phone. But there is a cost to it all and noone with their own OS is willing to spend enough cash for adequate hardware to support the OS except Ape where the hardware and software is not the key point of focus but the user experience. And that os why apple os winning.

  6. as a former apple/Phone fanboy from waaaaaaay back–all I have to say is good luck with another marginally improved tiny screened iPhone 5 next month.

    way to go apple. don’t continue the revolutionary innovation, take breaks to litigate and have big brother court system fight your battles. take your “tiny screened, long in the tooth, walled garden delicate flower of a device” ball and go home.

    1. This notion that Apple “took a break” to litigate I’ve seen a few times on various sites and it makes no sense.

      Not unless all of Apple’s hardware and software engineers double as their lawyers.

    2. That’s a ridiculous statement. Apple is doing what Apple has always done — introducing new hardware innovations as they are actually ready for prime time, not things like LTE and 5″ screens that suck batteries dry in a couple of hours. What good does a 5″ screen do you if your phone is out of power?

  7. Uber, you can do a search of your apps. While on the home screen, click the home button until the search window appears. Type in the name of the app and it will find it. It also searches e-mail. Seems to me that feature was added with iOS 5.0, but I am not certain. Try it, I think you’ll like it.

    1. I don’t see how this helps with the problem he describes. Sure you can search and find the app. Once Search finds it, you can open it and use it. But Search doesn’t tell you which folder it is in or which Home screen it is on so you can delete it, unless I’m missing something. I don’t think I am since I just tried it.

  8. Windows Phone has had a “slow rollout” because no one is buying the things. When you aren’t selling a product, you don’t keep producing millions of units and stockpiling them; you cut back on production.

    Consumers in the end will be the winners here because companies now know that not only will Apple sue you to the ends of the earth for violating its patents, but that it will win also. It will be less costly to develop your own solution, and that will give consumers more variety. It will take awhile, but it will happen.

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