Apple has a big challenge ahead of it if it wants to take away a significant portion of Samsung's market share. South Korea is heavily invested in key national industries. In 2000 they successfully went through the WTO to get the U.S. to drop import restrictions on Korean DRAMS. Maybe this is why Samsung feels confident using the legal arena to challenge a major rival in mobile phones.
I suspect the rivalry also helps to get the 2 giants added visibility which helps to keep other competitors at bay. If I might add, your conclusion about financial settlements is often the solution to corporate wrangling, but cross licensing is a win-win for both organizations.
While I agree Apple would be wise to keep an eye on Samsung, I don't think Apple fears anyone.
And here's something to keep in mind: Apple has only a few products. They're very focused. They can spend tremendous effort ensuring the iPhone and the iPad are amazing products. Meanwhile, here's a short list of just some of the products Samsung makes, besides phones and tablets:
TVs Blu-ray players Projectors Home Theater Systems Cameras Printer Toner Camcorders Washers & Dryers Refrigerators Microwaves
Samsung obviously has a completely different approach and philosophy than Apple. So what do they have to truly fear?
You are quite right to Say Apple should be very worried about the companies which is it up against.
But I feel that Google is right up there with both Samsung and LG as major rivals for Apple.
Lets face the facts if it were'nt for the Kick-Ass software coming out of Google,LG and Samsung would both have never been able to sell half as many Phones and Tablets as they are now.
So Google deserves its place in Sun as well.
As for Apple worrying that one of its competitors as a competitive advantage(procuring materials from its own company)-I have a solution.Use its burgeoning cashpile(USD 40 Billion) to buy out one of the contract manufacturers in Taiwan/China.
That for sure will help them secure enough inventory.
But won't be an about-turn for Apple? Yes it would but it would also reflect the fact that we live in an uncertain world today and the best companies have to be prepared for any eventuality and especially unexpected Bottlenecks in supply.
@Anandvy, The two companies have a relationship that goes deeper than the rivalry in the mobile phone and tablet PC industry. Samsung supplies components to Apple and I don't believe that relationship is in jeopardy. Of course, Apple is free to evaluate its procurement strategy and this may in future exclude Samsung. For now, I agree with Samsung that the legal roadblocks will not deter the company from competing with Apple. Apple may slow it down and Samsung may also slow down Apple but neither company will exit the smartphone and tablet markets as a result of the legal wrangling.
What do I think will happen? They'll settle for cross-licensing or one party will agree to pay the other a substantial amount. They'll agree to continue competing in certain areas and collaborate in others. That's more likely than continued litigation.
This is going to be an interesting time for Samsung and Apple. Assuming this latest issue is even seen in the courts, it will obviously put a slight damper on sales. I always found it odd when a company used a competitors parts in their product. It would seem like they could do some damage to sales by not meeting demand. I'm sure Apple is already working on changing this and many other upgrades for the new Iphone. They are definitely proving that Samsung is their biggest competitor and possible heir to the throne.
I don't think the Apple can win this legal battle over samsung because Apple is only complaining on the look and feel of the samsung phones and tablets is similar to iphone n ipad. But suddenly it feels like apple is feeling the heat of samsung eating the share of apple. Asusual apple would be working on something for the future.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.