Tim Bajarin: Apple could eventually dump Samsung as a component supplier altogether

“When news broke that Apple would sue Samsung for $2.5 billion over patent and design issues, I was stunned — not because Apple was suing Samsung, but because the amount in damages it was suing for was so low,” Tim Bajarin writes for PC Magazine. “Yes, Apple believes that Samsung did indeed violate its patents and copy the designs of the iPhone, but Apple is also using the trial to send the message to its competitors that… it will go to great lengths to protect its intellectual property. Ultimately, this trial is really about seeking revenge on Google. It believes Google stabbed it in the back with Android and, as Steve Jobs told biographer Walter Isaacson, it will launch a ‘thermonuclear war’ over Google’s Android mobile OS.”

Bajarin writes, “To understand Jobs’ anger with Google, you must grasp one very important thing from Apple’s past. When Apple was developing the iPhone, Google CEO Eric Schmidt sat on Apple’s board of directors. There is no question in my mind that he went to school on smartphones and their operating systems and I would not be surprised if he used that information to help Google guide its own efforts in this area. I’m astounded that Schmidt did not alert Apple that Google was working on a competing product the moment Larry Page and his team started to negotiate with Andy Rubin to buy Android. Instead, he merely asked to be recused from board meetings where the iPhone was being discussed, long after Google had announced Android. He left the board completely only after investors questioned how he could be on the board with a competing product in the works… In a sense, Samsung is kind of serving as the whipping boy for Apple’s Android anger.”

“I also believe… that this suit has tainted the previously good relationship between Apple and Samsung, [one of ]its component supplier[s],” Bajarin writes. “I have already heard that Apple is going to other sources for future components and I believe that Apple could eventually drop Samsung as a supplier altogether.”

Read more in the full article here.

Related articles:
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

67 Comments

  1. I surely hope that Apple severs all ties with samedung in the future. The sooner the better. The next year will be epic in the iPhone patent war, after this verdict.

    1. To Samesham that will eventually be a loss (ouch!) of 9% of their yearly profit and the privilege of being able to look over Apple’s shoulder to copy. Can’t happen soon enough. Apple needs to completely control their own destiny and remove any untrustworthy (Asian or otherwise) companies in their products manufacture.

    1. Maybe not overnight, but it can (and probably will) happen quickly.

      Apple is smart in having multiple suppliers for most of their components – it helps alleviate whole scale across the board issues when problems do arise – like say faulty HDs in new iMacs. They can quickly swap out bad supplier X’s defective device with supplier Y’s. Similarly, you can throttle back supplier S when they piss you off, while you increase supplier Y and bring on supplier L.

      Tim’s job before Apple CEO was to handle the supply chain. He can make this happen quickly.

      Samsung will soon learn, you don’t bite Apple.

  2. Samsung currently get advance notice of product direction from Apple. Mainly form design spec that Apple must provide to produce electronic part through Samsung. It gives this company advance knowledge that is used in its products with Google finding out as Samsung is a partner. The sooner they dump Samsung the better. Close the door while kicking out the leaking information sieve that is Samsung / Google.

  3. Samsung provides Apple with up to 60% of it’s components throughout all the Apple platforms. Cnet just tested 5 SDD’s and yes once again Samsung simply crushes everyone else hence why Apple and Samsung will continue to be joined at the hips for some time to come.
    Apple can only retain it’s ability to charge the prices they do if consumers continue to believe that the Apple devices are built with superior parts and right now Samsung is part of that argument.

    Tim should also note that Samsung can dump Apple as well if the Android trends continue to way they are and the Windows phone projections come to fruition.

    All this to say, that Apple is where it is today because of their wise decision to look to Samsung to produce quality components and at a pace that matched Apple’s needs to have enough product ready to sell to the masses. Sure the relationship as soured bait but the Jury’s decision will never be upheld in Appellate Court and add to this that the devices in question are already considered old tech. The S3 and new iPhone will do battle on the open market and time will tell what RIM and MSFT will bring to the table.

    I just hope that Apple does not get burnt by using Sharp and LG displays as Sony and Samsung displays are proven road warriors but left out of the iPad Mini and iPhone 5 production blue print.

    1. Pat, Samsung’s days as a partner are numbered. Samsung could have been a great long term partner but they acted shamefully and with disrespect. Apple will look to do business with a partner it can trust. While it may continue to use some Samsung chips, Samsung will lose considerable investment as investors will look to follow Apple and invest in Apple’s new partners instead.

      Samsung has real competition with Sharp and Sony as well as LG. Apple has been shown to be interested in future production from them already.

      It is going to be hard to overturn the verdicts in an appeals court. Face it, it may be even worse for Samsung if the other courts find more in favor of Apple and Samsung’s aggressive stance on copying, stealing, lying, etc. Samsung’s reputation will tank if they go that route.

      Pat, how would you feel if your business partners stole your inventions and started competing directly against you? You would be outraged, so why defend Samsung?

      1. I have no interest in defending Samsung, but in the same breath not a fan of the self-righteousness that Apple Cult Members bestow on Apple. They do their share of copying and stealing and they always and always will.
        A good artist copies and a great artist steals. Steve Jobs

        The US Judiciary will not allow this verdict to stand as the Jury Foreman’s comments probably have already raised red flags at the US Department of Justice and the US does NOT want the World to think that a US Jury singled handily issued a verdict that clearly favoured a US based company at the latter is not good for business.
        My point is simple, in that Samsung is so heavily entrenched into Apple products, that a shift to lesser knowns in terms of quality could be damaging to the Apple brand which folks pay a premium for to own it.

        1. Pat, not sure what you are smoking. Probably all the cheap lies that are spread by the Fandroid cool aid junkies in the forums.

          Name one thing that Apple stole, just one.

          1. How about just about everything they do which by the way Ubermac is no different then any other company on this earth. You copy what works disregards what does not and move on.

            Steve Jobs did not make that comment to simply waste a breath. Check out what he did a Pixar.

            1. pat your posts are so filled with stupidity it’s hard to start to reply on it.

              did you actually listen to Steve’s Jobs interview where he said theat quote : good artist copies great artists steal? He was quoting Picasso. Picasso meant that inferior artists marely make copies (e.g photocopy machine Samsung) while great artists take ideas from all over and through history in different discplines and TRANSFORM them into their own unique works of art.

              In Jobs interview he explainst that at Apple people were artists, musicians, poets and they TRANSFORMED art into engineering for mac!! Before apple tech companies seldom looked at ARTS for inspiration, that’s what Jobs was talking about.

              sure Picasso ‘stole’ but does anybody doubt he’s a unique artist? even non artists can recognise a picasso,

              Samsung transforms squat , they even copie pictures and colors of ICONS !!

              I won’t even bother to answer the other nonsense in your posts.

            2. Wow a whole lot of verbiage to make what point? I am not denying that stealing is not common place in business in general and by no means am I even remotely suggesting that Samsung is the poster child for Honesty and Transparency.

              As for your infatuation with Apple goes…. well no comments.

            3. so you actually didn’t see Jobs interview where he said the PIcasso quote or understood it?

              go attend art 101.

              I’ve got a BA in studio art and BFA in art and art history.

              my infatuation with apple???
              you dislike apple and you post all over on a MAC FAN WEBSITE.. and you talk about infatuation?

              I’m posting here as I’m apple fan and spend lots of time conversing with other apple fans, you dislike apple and you’re spending bonks of time posting in numerous MDN article forums and you say others have ‘infatuation’ ???? . Man, who has got the issues here?

              rotfl !!!

            4. Picasso was part of the cubist movement. To the uninitiated paintings from other cubist artists could easily be confused for picassos. If you covered the signatures of paintings by Braque and Picasso then asked an uneducated jury of Americans chosen at random to tell them apart I think they may struggle. If apple really think that Samsung products look too similar they should just change the design on every phone instead of every second one.

            5. @ weezer

              “If apple really think that Samsung products look too similar they should just change the design on every phone instead of every second one.

              why? why should apple change its design because samsung is violating the law by copying them?

              in Picassos cubist period, he worked with Braque, it can be said they developed cubism together. Neither ripped each other off. PIcasso’s Les Demoiselles d’Avignon is considered the first proto cubist (i.e the forerunner of the cubist movement). Neither of them had ‘rights’ to the movement or can be considered the ‘creator’ over the other.

              Picasso left the movement and his later works were very distinct.

              I’m not sure what you’re getting at with picasso braque but they hardly have anything to do with samsung. Apple didn’t set up a studio with Samsung to develop the iPhone together. Apple designed the iPhone by themselves and samsung stole as even the jury agreed.

        2. You’re confused, Pat. Apple doesn’t steal and Apple doesn’t copy. What Apple does do is to take the best ideas (that’s what that Jobs quote is all about) and use them in beautifully realized devices.

          Patents don’t protect ideas; they protect the *expression* of ideas. Apple sued Samsung because it copied Apple’s expression of ideas, i.e. its actual devices and software.

          I’m amazed that you don’t appear to understand that important distinction. I gave you the benefit of the doubt when I stated that you are confused but perhaps you’re really trying to deceive and mislead. If so, shame on you.

          1. You have no clue what you are talking about, as once again you come across like the rest of the disciples who talk nothing but nonsense. You sir could not even come close to assist me in deciphering Steve Job’s comments as the comments are very easily understood.

            Listen Apple Cult members, you all have a hate on for Microsoft, Android, Samsung, etc… and this is AOK but please do not come off like brainwashed robots as the latter is extremely scary.

            As I often times say, I enjoy Apple products and own several of them but I am not a big fan of the Cult like Culture as the Culture is self-righteous and the associated self proclaimed prophecy is getting old.

            1. thats not even a Steve Jobs quote. You look like a fucking fool when you continuously spread bad information around.

              He was quoting Pablo Picasso. You’re distortion field is pretty heavy. If someone repeats something, or ‘quotes’ someone, then the quote is attributed to the original person. You’re taking it out of context and trying to spin it that this was some fundamental truth that Steve had coined on his own in regards to policy. Gtfo

            2. Pat

              “Listen Apple Cult members”

              DUDE this is an Apple FAN site.
              so if you don’t like apple fans WTF are you posting here?

              you’re an apple hater yet you have the most posts here (an apple fan site) so who is more cult like or crazy fanatic?

              apple fans who praise apple on an apple fan site or an apple hater i.e you PAT who posts here and posts the most?

              think about it

              what are you : “Cult of Apple Hate”?
              you seriously need some psycho help.

            3. My Lord long on words that mean nothing! Getting into the minds of Apple Fan Boys is a form of entertainment as it clearly solicits rebuttals like yours which closely resembles what Cult Member a la Church of Scientology would do.

              I have nothing but respect for Apple and their products but still cannot believe the disciples that speak of Apple as the second coming! You have to admit that this is freaky and a scary human condition.

            4. my dear Pat

              again who is the fanatic the apple fan that posts on an Apple FAN SITE or an apple hater who posts over and over here?

              don’t worry!
              a psychiatrist is near you!

              (your delusions of being a VP of GM who doesn’t even know its supply chain which a commentator can dig out in 5 minutes… you need help.)

        3. peoe are passionate about Aaple because when you use their product you relapse very quickly that nothing can touch them from any other company.

          You talk about the ‘apple fanboys and cult’ but what you should be doing is encouraging apples competitors to design and make better products!

          I’ve tried all of apples competitors over te years and NONE of them offers the amazing user experience and quality of design that apple does.

          Android OS sucks if you’ve ever used and apple IOS device. Android is in beta stage compared to IOS and the reason why IOS will always be better is that apple is a software and hardware company NOT a search company.

          Face the facts, google will Newr be apple and apple will never be google.

          Google should have stuck to search, it’s their only specialism.

    2. On the whole, a well-reasoned, thoughtful post, Pat, but I think “Mees” hit the nail on the head.

      BTW: it’s = it is; its = possessive pronoun, the one you meant.

    3. Pat (i.e., Asshole),

      Why do you even bother to post your anti-Apple diatribe, diahrea bullshit on this forum? Oh yes, I remember- you’re a Scamscum paid troll that just showed up on this forum when the Apple vs. Shitdung began and get paid by the word.
      Again- ESAD and just go the Fsck away

    4. Pat, I highly doubt Apple’s reputation for innovation, ease of use, design simplicity, manufacturing engineering/quality, superior software/os’s, device compatibility, and customer service have a single thing to do with Samsung parts “under the hood.” Customers simply don’t know, for the most part, who sources the components, just like a car buyer doesn’t know what supplier built the alternator or air conditioner compressor under the hood of his car…and frankly, doesn’t care. To suggest that Apple couldn’t charge the prices they do for their products if people didn’t think Samsung parts were inside, well, you’re delusional.

  4. ““To understand Jobs’ anger with Google, you must grasp one very important thing from Apple’s past.”
    .. What Google did to Apple was exactly what Microsoft did to Apple in the 1980’s. Steve failed to stop Microsoft profiting at the time. He didn’t want to lose the same kind of fight again. He won’t.

  5. Tim Bajarin brings up a very important point, that Apple’s real target from these lawsuits is Google. Even though Samsung rightfully was sued for infringement (and thankfully, Apple won), Samsung was basically caught in the crossfire of a much larger battle. If Google was supposedly offering background legal help to Samsung in this recent lawsuit, then I’d be very worried if I were them.

  6. First we cut away Google’s essential apps on the iPhone: YouTube and maps. Then search will be the next to go with the integration of Yelp, Siri and other direct search apps that bypasses Google search.

    Once Google has been cut away, Apple will gradually reduce its dependence on Samsung for hardware parts, starting with the screen, the flash memory, then the ARM chip until Samsung will only be supplying the plastic bubble wrap around the packaging.

  7. I don’t deny that Samsung makes good parts for Apple, but they do not honor Apple’s patents. If there is one last wish Steve Jobs left for Cook to do it’s get out of bed with Samsung.

  8. The arrogant a-holes at SameSong have distributed a memo saying that Apple could not make the iPad and iPhone without SameSong. Talk about hubris.

    The KorenKopyKats – a.k.a. SameSong is going to learn a very hard lesson over time should they not come to their senses.

    1. Let’s see what Apple products will look like in terms of quality and sustainability post Samsung. Easy to just say F Samsung but they are the reason why Apple makes so much money as Apple sells their brand as being a higher grade brand than PC. Not sure this will hold true sans Samsung who even today rank 49 components in the top 3 in their respective category.

  9. The trial and outcome have now likely accelerated a Samsung replacement strategy within Apple, and perhaps, other current or potential business partners that expect integrity and IP protection.

    This is a Samsung tipping point.

    1. All of this talk suggests that you all think that this Jury verdict will hold and sadly it will not. Life will go on as it was prior to this trial and others which are filled in all sorts of jurisdictions around the World.

      Let’s be 100% clear as some of you folks are just so out of touch with business that it hurts to read your posts. GM does NOT buy parts from Ford! Get it?

      Apple needs to buy parts from Samsung, LG, Sony, and God knows how many more suppliers who are or can be in conflict with Apple due to either directly competing against them of supplying other companies with the same parts they sell Apple.

      As it stands, the fact remains that Apple is caught between a rock and a hard place as they damned if they do and damned if they don’t.

      Having a stockpile of shareholder money does nothing for you as that money is money earned and Apple needs to protect it from being used in a failed attempt to try and make a point with your top line parts suppliers.

      Do not think for a second that Samsung Group (yes the Group of Companies) will play second fiddle to Apple or anyone else hence given that we ask Countries to avoid Wars by talking things out, the same will happen between Apple and Samsung.

      Look whether Apple Cult members like it or not, to this day Apple and Microsoft work closely together and that is just a fact of life. No one company can go at it alone and that includes private and public companies.

      1. Pat, I would love to know what credentials you have that qualify you to make such definite predictions regarding the outcome of the appeals in this case. From your comments it appears to me that you know very little about the U.S. federal court system. Federal judges, while not entirely apolitical, generally take comfort in their lifetime appointments and routinely ignore political winds.

        1. I am well versed in International Law hence the behaviour and comments of the Jury Foreman since the reading of the verdict will be cause enough for the Appeal to be granted and expect more influence from the Court in terms of having tech experts 100% independent of both Apple and Samsung review the legitimacy of the Patents that were granted and of course the relevant facts that need to be evaluated with regards to proving guilt or innocence. Had the Jury deliberated for an extra 7 to 10 days and asked for clarification on a few items and of course the Jury Foreman shutting the hell up then this case would not appear to have been swayed by a singular voice and that being the voice of the verbose Jury Foreman who has a USA registered Patent under his belt.

          By no means do I think that Samsung is innocent as frankly none of the tech co’s are as they ALL copy with a tweak here and there but to condemn Samsung of stealing is another thing and this is what this Jury did hence why the Appeal will be filled and accepted.

          1. “Had the Jury deliberated for an extra 7 to 10 days and asked for clarification on a few items”

            you claim that you are an expert in international law and that the process of the trial is wonky because the jury did it fast…

            well expert in international law, if there was a murder (a serious crime) but where the charged was seen by ten witnesses and videotaped by four phone cameras and one surveillance camera, where his DNA was found at scene, on the victim and the murder weapon and the gun was registered to him and he was arrested at the scene holding the gun over the victim..

            and the jury decided he was guilty very fast.. is it flawed?

            the jury in samsung apple case said they arrived at it so quickly because over the WEEKs of the case they had seen the evidence against samsung (DNA, gun, witnesses) was absolutely compelling.

            1. Take a breath… and read what the legal community is saying and please pay particular attention to what the loose canon Jury Foreman has already said.

              Appeals and lot’s to them will be forthcoming and yes expect the Feds to get involved as the diplomatic phone calls are already flowing.

            2. I already blown your ‘too fast = bad decisions’ theory so now is “wait for what is forthcoming” …?

              lol.

              cluessless so called ex VP of GM who does not know that GM’s own sub Nexteer sold parts to Ford and said that “Apple can’t win against many”.. (like davewrite refuted: iPod).

              and like apple haters every where, when they get chewed and made to look like fools it’s name calling : “Cult of Mac” … well you’re cult of ignorance and stupidity. lol.

            3. Did you get home schooled? You demonstrate a complete lack of intelligence when you write this way. My role at GM was finance and indeed Nexteer was a parts supplier to the competition, competition that we never sued!

              I am wasting time with a Cult member like you. Drink the Kool-Aid and happy dreams.

            4. like I said who is the ‘cultist?’

              a retard of an apple hater who posts and posts hate on an Apple FAN site?

              or apple fans praising apple?

              a psycho doc is near you — please get help.

  10. Google maps out
    YouTube out
    Zagat out(apple preferred yelp and opentable)
    Google search?(still there but Siri is probably bypassing google)
    Google search out(at least in China which opted for Baidu)
    Samsung display out (apple opted for lg and sharp)
    They’ve been decreasing Samsung display for new ipad already

    The iPhone accounts for 2/3 of mobile browsing. Just imagine if Apple uses bing or yAhoo as default(but I doubt it)

  11. Pat said:
    Let’s be 100% clear as some of you folks are just so out of touch with business that it hurts to read your posts. GM does NOT buy parts from Ford, get it?

    Sorry to burst your bubble pal but they certainly do buy parts from each other.

    1. Ex GM Canada VP here and my bubble is just fine. We might buy from a common vendor like PPG Glass, Good Year, Dunlop, etc… but We DO NOT BUY parts from one another.

      My point is what makes up a Corvette is 100% GM and there are no Mustang or GT 500 parts to be found.

      1. the more you argue Pat the dumber you look.

        gm for example owns parts suppliers that sell to eveyone.

        example they used to own nexteer (which they sold not too long ago). Autotrend “General Motors isn’t the only customer served by Nexteer. The company is a supplier of auto parts for Toyota, Ford, PSA Peugeot Citroen, Fiat and Chrysler,”

        enough?

        1. pat “Ex GM Canada VP here”

          if you were actually a GM vp, did they fire you for dumbness?

          you didn’t even know about your own companies Nexteer’s connections…

          if your friends at gm saw your posts being ripped apart they’ll be laughing their heads off.

      2. Pat

        “Ex GM Canada VP here ”

        eh…
        if you’re really a GM VP..

        you’re proud member of company brought back from bankruptcy by government (taxpayer) bailouts criticizing the strategies of Apple — you know the record breaking profit making company with 110 billion in the bank?

        maybe GM woud be better condition if they hired apple junior managers to run it instead of morons like you?

        lol.

    2. you are right that Pats posts are full nonsense.

      I didn’t even bother to reply to Pats stupidity here.

      I replied in Pats previous posts on another article where pat said that “apple can’t hope to win against everyone”.

      I replied “iPod”.

      (pat has the gall to say “Let’s be 100% clear as some of you folks are just so out of touch with business that it hurts to read your post” )

      1. You are a piece of work! All I try to do is to remove the Cult member tone to comments posted on MDN and that just get’s you upset as Cult members do not like to be challenged.

        Watching TV and typing on my mid 2011 MBA 13″ with the top rated Samsung 256 G SSD (coe s and not t for Toshiba), Samsung display, Samsung Chispets and Samsung RAM.

        Could also be typing on my 2012 MPB 15 D fully loaded or my iPad or my iPhone. Simply put, use Apple but not an Apple Fan Boy! Sorry.

        1. Pat, lets not diverge all over the place:

          so going back to your comment in another article where you said “Apple cannot take on everyone and think it can win.”

          (http://macdailynews.com/2012/08/27/apple-kicks-googles-android-in-the-teeth-1-05-billion-jury-award-may-really-be-worth-450-billion/#eej2ahZ0RPQqv0Jw.99)

          I said :
          “iPod.

          iPod beat Sony, Toshiba, iRiver, Creative Nomad, Phillips, Saehan, Archos, Samsung, Cowon, Msft Zune, Sandisk, etc etc. Note that companies like Sony were huge, had extensive audio manufacturing – sony sold tens of millions of Walkman every year and STILL got beat by by an apple which in those days was much much smaller than it is now”

          well? I’m a piece of work.. when I show how retard your arguments are?

          like I said your posts are full of nonsense.

          no wonder gm is in such shat trouble with ‘tards like you working for it.

  12. With the money Apple Inc. has accumalated surely they could make their own essential component parts or at least acquire someone who does. Is this not feasible?

    1. They would run of work for these plants if they relied solely on Apple products and retrofitting plants every time you make changes or introduce new products get very expensive.

      Remember that Apple does not have money, shareholders do and what you propose would need a strong value proposition for them to want to fund the kinds of costs that state of the art foundries would cost.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.