It’s astounding me a lot, Apple neither manufactures the components nor assembles them into the finished product, but the company is known as one of the world’s leading Smartphone manufacturers. Considering about its iPhone, all components of the device are being manufactured by number of vendors and finally assemble by Foxconn. Most important paraphernalia is here that majority of components for Apple’s devices are being provided by Samsung. In other words, Samsung is the largest component supplier to Apple. Apple is expected to buy number of components including LCD, application processor and flash memory for its iPhone and iPad. Apple is poised to spend $7.8 billion to Samsung for components.
Despite of these, Apple has just filed a legal lawsuit against the South Korean giant in the U.S. to ban sales of Galaxy SIII model across the country. Reminiscing to last year’s incidents, Apple sued Samsung for copycatting of iPad and iPhone models into Galaxy lineups of Tablet and Smartphone.
At present, Apple isn’t in mood to negotiate with Samsung by anyhow. The reason is quite clear, a lament of loss of its supremacy in the Smartphone segment, teared out by Samsung in Q1 of this year. Undoubtedly, the lawsuits are too interweave and it’s not possible for any tech giants to lead over the other. Last month (on May 22 and 23), the CEO of both the companies met to each other for about 16 hrs, but failed to reach at a reliable decision.
It’s true, at the corporate ground, there are no enemies and friends. However, Samsung is now the world leading Smartphone manufacturer, followed by Apple. A recent 9 million pre-orders of Galaxy SIII model might have threatened to Apple to take an advantage of legal patent maneuver to commute Samsung’s foothold in the U.S.
But, when it comes to revenue and profit margin, Samsung still needs to work hard to beat its greatest Smartphone rival. Apple’s profit margin in the last quarter was 39.3%, while Samsung had just 20%.
By August 2011, Apple and Samsung fought legal battles with each other (in 19 ongoing lawsuits) in 12 courts across nine countries. By October last year, the fight extended across 10 countries. But what were the consequences of these battles? Indeed, the ultimate cost of these patent wars were paid by consumers, shareholders and investors, but it was trivial.
Now, Apple has filed a legal injunction to stop the sale of Samsung Galaxy SIII in the US. The company has claimed that Samsung has infringed its patents in Phone design. But, Samsung has planned to roll out the device in U.S. market. Actually, the lawsuit was filed by Apple on June 5 in the Northern District Court of California. At present, Apple and Samsung are fighting with each other over 30 patent litigation around 10 different countries.
In a statement, Samsung said, “Samsung believes Apple’s request is without merit. We will vigorously oppose the request and demonstrate to the court that the Galaxy S III is innovative and distinctive.”
Samsung Galaxy SIII model is currently available in Australia and expected to be launched in the U.S. later this month. Indeed, the battle between Samsung and Apple is not fair. It has been noticed, since the last couple of years, device manufacturers are trying to take their rivals on legal courts just on the basis of their patent right. A significant number of companies including Microsoft, Oracle and more engaged in this act. Undoubtedly, they have somehow succeeded to generate a hoard of cash from their patent right.
Indeed, the patent maneuvers damage to innovation and at present, number of companies are indulged in this mischief rather than to develop either high-end product or innovative technology.
In context of Apple-Samsung battle, I think Samsung is a benevolent contender. If we interchange positions of both the companies (if Apple existed at the place of Samsung and vice- versa), then, Apple would never supply any component to Samsung, but here the climax is just reverse.
Apple put its all afford to demolish Samsung’s business last year, but what happened? Despite of this, Samsung has become the world’s leading mobile handset manufacturer. War is not the solution of any problem, the competition should be fair. Currently, Samsung is selling its Galaxy SIII model in 28 European countries (started from London) and Middle East.