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.

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