Samsung vows legal retaliation against its $5.7B customer, Apple

Posted:
in General Discussion edited January 2014
Following a patent suit from Apple, Samsung has vowed to retaliate with its own legal action, and the South Korean electronics giant is said to be considering a counter-suit related to wireless patents.



Samsung officials have reportedly said that they believe Apple has violated patents their company owns related to wireless technology, according to Agence France-Presse. Samsung has vowed to "actively" respond to Apple's lawsuit, and said it plans to take measures to "protect" its intellectual property.



"Apple is one of our key buyers of semiconductors and display panels. However, we have no choice but to respond strongly at this time," an unidentified Samsung official reportedly said.



The report noted that Apple was Samsung's second-largest client in 2010, following Sony. Apple reportedly accounted for 4 percent of Samsung's $142 billion in revenue last year, or $5.68 billion.



Apple was previously projected to become the largest customer of Samsung in 2011, with a reported $7.8 billion in component purchases planned. However, it's unknown whether Apple plans to shift components to another supplier given the recent legal action.







Apple took that action with a new lawsuit revealed on Monday, in which the Cupertino, Calif., company has accused Samsung of copying the look and feel of its products, specifically the iPhone and iPad. Named in the suit are the Galaxy S, Nexus S and Epic 4G smartphones, as well as the Galaxy Tab touchscreen tablet.



"Rather than innovate and develop its own technology and a unique Samsung style for its smart phone products and computer tablets, Samsung chose to copy Apple's technology, user interface and innovative style in these infringing products," Apple said in its complaint.
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Comments

  • Reply 1 of 92
    cmvsmcmvsm Posts: 204member
    Guess I'd hate to be the CEO that loses a 7.8 billion dollar customer over the design of a smartphone that they had to know going in would ruffle some of Apple's feathers. And to react with a counter lawsuit tells me that Samsung thinks that they are the only game in town for the components Apple needs. However, I'd have to guess that Apple has some kind of contingency plan to replace Samsung if needed, prior to coming out with this lawsuit.



    Might have some ex-Samsung execs walking the street in a few months.
  • Reply 2 of 92
    dave k.dave k. Posts: 1,306member
    Either this is some sort of "legal dance" between Apple and Samsung or a foolish quest on Apple's part... All of these devices have the same look and feel, IMO.
  • Reply 3 of 92
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by Dave K. View Post


    All of these devices have the same look and feel, IMO.



    And that's exactly Apple's point. There was a large variety of different devices before the iPhone came out and no one unifying theme. Then Apple introduced the iPhone and suddenly dozens of near clones appear.



    Too bad none of the major phone manufacturers was able to innovate on their own.
  • Reply 4 of 92
    MacProMacPro Posts: 17,892member
    Quote:
    Originally Posted by jragosta View Post


    And that's exactly Apple's point. There was a large variety of different devices before the iPhone came out and no one unifying theme. Then Apple introduced the iPhone and suddenly dozens of near clones appear.



    Too bad none of the major phone manufacturers was able to innovate on their own.



    Exactly.
  • Reply 5 of 92
    A risky lawsuit.



    Even if Apple wins, they may see a net loss, because they more or less rely on Samsung to meet the market demand on their products.
  • Reply 6 of 92
    Well whatever the dance



    In 5 years the tech landscape is going to be radically altered.



    In a way out scenario the outcome could be harshest on patents themselves. I mean, if none of these get upheld in the vice versa lawsuits then what of patents and infringements.



    The true battle to me is no longer patent ownership but sheer rate of innovation and ultimately pure invention. Cause that will attract buyers, dominate markets and provide you with the cash to keep on rolling. Sloppy seconds are simply that, copy all you want.
  • Reply 7 of 92
    jkichlinejkichline Posts: 1,319member
    At first, I wasn't totally sold on the case, but after seeing those pictures and looking at the Galaxy Tab, there is indeed something there. For instance, the Samsung Galaxy Tab comes with a "30-pin dock connector" very, VERY simliar to Apple's. In fact, I had some coworkers try to use it with their Apple products. In addition, the UI enhancements found in Samsung products is very iOS like. Obviously it's Android, but it's built to look and feel like an iPhone.



    I have a Google Nexus S for testing Android apps and it's a great device. I have recommended to my friends. Why? Because it's a very good iPhone competitor. Same weight, same size, same screen dimensions, same feel. Yes it has a "curve", but otherwise it's an iPhone knock-off.



    So I can see Apple's point in all of this. It's an immensely risky move for them given their current production issue, but like was said here, I doubt they would try this without a backup plan.
  • Reply 8 of 92
    technotechno Posts: 687member
    Quote:
    Originally Posted by Dave K. View Post


    Either this is some sort of "legal dance" between Apple and Samsung or a foolish quest on Apple's part... All of these devices have the same look and feel, IMO.



    I usually think these patent suits are a bit ridiculous. However, after seeing the two side by side, I was shocked at how similar they appear. I think this is real
  • Reply 9 of 92
    ghostface147ghostface147 Posts: 1,629member
    So what radical form are manufacturers supposed to take to not look similar to each other?
  • Reply 10 of 92
    Quote:
    Originally Posted by jragosta View Post


    And that's exactly Apple's point. There was a large variety of different devices before the iPhone came out and no one unifying theme. Then Apple introduced the iPhone and suddenly dozens of near clones appear.



    Too bad none of the major phone manufacturers was able to innovate on their own.



    The whole affair is bizarre. Apple's lawsuit is also pretty unwinnable. The case they want to make is that 'people should be more courageous, farsighted and original'. Yeah, I guess they should be, but they're not. That's why no one was making 'tablets' before Apple, and now everyone has a tablet or 'plans' for one. It's why houses on the same block look alike. It's why everyone (except maybe the top, top boss) in a corporation dresses alike.
  • Reply 11 of 92
    mac_dogmac_dog Posts: 639member
    Quote:
    Originally Posted by cy_starkman View Post


    The true battle to me is no longer patent ownership but sheer rate of innovation and ultimately pure invention. Cause that will attract buyers, dominate markets and provide you with the cash to keep on rolling. Sloppy seconds are simply that, copy all you want.



    i'll go one further and say that the rate of copy (i.e., non-apple products) will dominate the markets. because, as we all know, apple is the only company out there that is truly innovating and pushing themselves.
  • Reply 12 of 92
    maestro64maestro64 Posts: 4,422member
    This is standard operating procedure for Samsung. They do this to everyone, when Motorola Phones were hot they blatantly copied their designs as well.



    Part or the reason Samsung sell their parts so cheap is to they can get into designs and learn how other companies do things so they can copy it and make knockoff at a lower price and win in the volume game.



    Apple is learning the hard lesson that many other companies have learned, do not do business with a competitor. Honestly, no technologies company should buy Samsung parts, since many time Sansung makes the exact same product themselves. It the same as Apple buying technology from RIM, Motorola or Nokia, that that would do it teach those company the Apple know how.
  • Reply 13 of 92
    saareksaarek Posts: 1,105member
    To be fair to Samsung (& all the other phone manufacturers out there) there's not really anything they can do about having a similar look to the iPhone.



    Seriously, how else can you make a touch screen phone? The display naturally sets the design, it's rectangular and usually 3.5". Apart from rounding the edges a bit more and maybe making it bright green what else can they do!



    The OS is also very similar & Apple should sue google accordingly.



    Apple might as well issue a law suit against every major phone manufacturer out there and just do it in one go.
  • Reply 14 of 92
    richlrichl Posts: 2,213member
    Quote:
    Originally Posted by cmvsm View Post


    Guess I'd hate to be the CEO that loses a 7.8 billion dollar customer over the design of a smartphone that they had to know going in would ruffle some of Apple's feathers. And to react with a counter lawsuit tells me that Samsung thinks that they are the only game in town for the components Apple needs. However, I'd have to guess that Apple has some kind of contingency plan to replace Samsung if needed, prior to coming out with this lawsuit.



    Might have some ex-Samsung execs walking the street in a few months.



    Samsung isn't like an American corporation. Its execs can get away with anything they please.



    Walking the streets? No. Sitting around a pool? Yes.
  • Reply 15 of 92
    esummersesummers Posts: 887member
    Quote:
    Originally Posted by Maestro64 View Post


    This is standard operating procedure for Samsung. They do this to everyone, when Motorola Phones were hot they blatantly copied their designs as well.



    Part or the reason Samsung sell their parts so cheap is to they can get into designs and learn how other companies do things so they can copy it and make knockoff at a lower price and win in the volume game.



    Apple is learning the hard lesson that many other companies have learned, do not do business with a competitor. Honestly, no technologies company should buy Samsung parts, since many time Sansung makes the exact same product themselves. It the same as Apple buying technology from RIM, Motorola or Nokia, that that would do it teach those company the Apple know how.



    They are component suppliers. They don't see the designs.



    With 222,000 employees, Samsung is essentially a bunch of companies under the same name. Apple is essentially working with one department and suing a different department for patent infringement.



    I have always thought that Samsung has independently come up with a style that is somewhat similar to Apple's. Although in this case it does feel like a complete ripoff of Apple's designs.
  • Reply 16 of 92
    drdbdrdb Posts: 99member
    It's not surprising. All these smartphones out there rely on the 'it's kinda like an iPhone, but cheaper' argument.
  • Reply 17 of 92
    tundraboytundraboy Posts: 1,598member
    Quote:
    Originally Posted by RichL View Post


    Samsung isn't like an American corporation. Its execs can get away with anything they please.



    Walking the streets? No. Sitting around a pool? Yes.



    Apparently you haven't heard of the fat cats running Goldman Sachs, Morgan Stanley, and the rest of the U.S. financial industry. None of them will spend even a day in jail despite all the double-dealing and self-dealing they did that exacerbated, if not outright caused, the great recession.
  • Reply 18 of 92
    Quote:
    Originally Posted by saarek View Post


    To be fair to Samsung (& all the other phone manufacturers out there) there's not really anything they can do about having a similar look to the iPhone.



    Not true. There are lots of iPhone competitors out there. Samsung's are the only ones that look confusingly similar.
  • Reply 19 of 92
    xsuxsu Posts: 401member
    They should hope Apple succeed, and force Samsung to just use stock Android. Then at least their phones will get updated.
  • Reply 20 of 92
    beg_nebeg_ne Posts: 9member
    I really hate to see Apple suing for the kind of thing, and potentially risky for both Apple and Samsung.



    I really hope Samsung believes they can make $8 Billion in profit selling their own phones and tables because they could possibly lose that much from Apple. Really silly of them to play games like this.



    I also feel that the copying by Samsung has been very blatant and pretty shameful. A lot of their "designs" would leave your typical Chinese knock-off company blushing.
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