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  (Source: Jason Mick/DailyTech LLC)
Steve Jobs gets his final wish, companies appear ready to fight to the death in court

Apple, Inc. (AAPL) and Samsung Electronics Comp., Ltd.'s (KSC:005930) have made it clear that they're over cooperating and are gearing up for total war.

I. Samsung and Apple's Settlement Talks Collapse

According to a report by The Korea Times, the phone industry's two largest players, and two of the world's largest intellectual property owners, walked away from the settlement table despite the efforts of Magistrate Judge Joseph Spero to encourage their chief executives to work out a compromise.  With settlement talks failed the "nuclear war" will begin with Apple's trial, which is scheduled for July 30.

For Apple and Samsung the cost of battle may be enormous.  Both companies could see their products banned, at least temporarily in certain regions.  Samsung may be forced to abandon billions in chipmaking revenue it takes in from Apple on a yearly basis.

And Apple may be forced to find a new supplier for its smartphone CPUs.  With past trials reportedly not going well, that could mean inferior product and fewer upgrades for the iPhone.

Apple CEO Tim Cook sounded dejected in his company's last financial report, commenting, "I've always hated litigation and I continue to hate it we just want people to invent their own stuff."

Samsung v. Apple
Whoever wins in Samsung and Apple's full-blown court war could have a monopoly on the mobile market. [Image Source: The Telegraph]

But despite the seemingly promising signs early this month of a bilateral agreement to cut the number of patents asserted in the companies' lawsuits against each other, the pair could not reach a cross-licensing agreement, as both handset makers believed the other should be paying it licensing fees.

With Apple scooping up large LCD screens for its iPhone 5 (Samsung is the world's largest display manufacturer), the two companies' mutual business has reportedly ballooned to $12B USD for 2012 (up from $8B USD in 2011), even as the pair's public relationship has appeared to deteriorate drastically.

II. Steve Jobs Gets His Wish -- Full Blown "Nuclear" War With Samsung

But ultimately the two companies' leadership seem to believe they stand more to gain by destroying each other, versus working together.  

Samsung current has a larger slice of the smartphone market -- 29.1 percent compared to Apple's 24.2 percent in Q1 2012.  But Samsung trails Apple in profit, making just $4.45B USD in profit, compared to Apple's $11.6B USD haul.

Samsung girls
Samsung's attractive models beat out Apple in unit sales. [Image Source: Shootspeak]

Both companies control close to two-thirds of sales and 99 percent of mobile profits, and their cases are built on questionable legal foundations from a technical perspective.  Samsung is suing Apple mostly based on wireless standards patents.  But Samsung should be obligated to license those patents to Apple under the "fair, reasonable, and non-discriminatory" (FRAND) rules that govern standards patents.

Samsung is currently under investigation for its questionable discrimination of Apple licensing-wise.

Apple on the other hand, may have a bit of a case against the original Galaxy S, which narrowly mimicked the iPhone 3GS in case appearance and GUI (much more than any other Android).  

iPhone 3GS v. Galaxy S
(Click to enlarge) 
Samsung's TouchWiz version on the Galaxy S (left) presented a near identical interface, visually, to the iPhone 3GS (right). [Image Sources: Slashgear (left); Ubergizmo (right)]

But Apple's case becomes much more tenuous when you consider that Samsung’s newer handsets bear far less similarity in case appearance or GUI to Apple's new handsets.  
 
Still patent disputes are often less about technical merits and more about the persuasive power of a company's pricey legal team.  In that case, “Apple v. Samsung” will be fought by lawyers when it goes to trial this summer in U.S. federal court.

But one thing is certain; the collapse of settlement talks would have greatly pleased the late Apple founder Steve P. Jobs, even if his company ends up losing this war.  He vowed near his time of death to send Apple into full war mode and destroy Android at any cost -- or perish trying.

Steve Jobs
Steven P. Jobs' dying wish of "thermonuclear war" with Android has been fulfilled.

He commented, "I will spend my last dying breath if I need to, and I will spend every penny of Apple's $40 billion in the bank, to right this wrong. I'm going to destroy Android, because it's a stolen product. I'm willing to go thermonuclear war on this."

Well, that "nuclear" war is now almost upon us.

Source: The Korea Times



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RE: Yawn...
By Tony Swash on 5/27/2012 1:45:26 PM , Rating: 2
quote:
I feel I am debating with an Apple marketing robot.


I on the other hand feel like I am exploring the world's most perfect example of the Dunning–Kruger effect.
http://en.wikipedia.org/wiki/Dunning–Kruger_effect

My point is that no one can point to a tangible actual advantage that Android's larger market share actually delivers to anyone. All you offer is waffle.

If I can paraphrase your responses to my point:

a) your current phone is better and cheaper than than an equivalent iPhone.

From what I can see the price of an iPhone on contract is about the same as an equivalent Android with a similar spec. In the realm of smart phones Apple's products are not priced significantly higher than equivalent Android handsets. What I don't see is any evidence that Android handsets are undercutting Apple handsets as a result of market share.

b) You, and millions of of others really like your Android handsets.

Well that's great but how is that enjoyment enhanced by having a larger market share? Your enjoyment of your Android phone doesn't seem to relate to the point I was making. Some people love their RIM handsets, is that a function of having a smaller market share?

c) There is a report that it is possible Apple's sales have diminished in the most recent quarter.

That may or may not be true as we don't have any actual figures yet so speculation in any direction is easy. If it is true then it would be an exact replica of the sales curve for previous years, when after the holiday season sales drop back below the previous peak. Given that iPhone sales are seasonal the only worth while comparison is to the same quarter a year ago when Apple sold 20 million handsets (the following quarter that dipped further to 17 million prior to the new model release). If Apple sells anything above 20 million then it is growing. Personally I expect another annual growth figure of between 60-80% but let's wait and see. The main point is that year after year Apple has grown it's phone business by around 100% and there is no evidence (fact based evidence) that that is slowing.

d) Android sales is rising.

So what? Again it doesn't address the point I made which is that having a large market share is not delivering any advantage to anyone.

e) You don't like surveys of customer satisfaction

That's because they all say the same thing - iPhones owners like their handsets more than Android owners. If you think that is not true then find some that say something different.

f) Some Android hand set makers are achieving economies of scale in their supply chain. Duh - obviously. The point is that there is no evidence that those economies are enhanced by Android having a larger market share - but if you have evidence that I am wrong on that by all means post it.

g) You think Apple is capturing surplus economic profit by suing competitors, thereby stifling competition and as a result inflating prices. Although confusingly you are also arguing that Android is power ahead - which is it, stifled or booming?

Apple makes better profits than anyone else because on the one hand it keeps it's costs way down through limiting it's number of SKUs and managing it's supply chain, and on the other hand it demands very high payments from carriers. Carriers pay those high rates to Apple because demand for the iPhone is so intense. If a carrier were refuse to pay and thus be forced to drop the iPhone they know they would immediately start to bleed customers. All the whining about Apple's legal actions is just the usual smoke screen to try to obscure the central weaknesses and failures of the Android business model

Still no answer to these questions:

Can anyone offer a real world example of an actual concrete advantage (with evidence) bestowed on anyone (OEMs, consumers, developers) by Android having a larger market share than iOS?

Can anyone offer a real world example of an actual concrete disadvantage (with evidence) bestowed on anyone (Apple, consumers, developers) by Apple having a smaller market share than Android


RE: Yawn...
By Cheesew1z69 on 5/27/2012 1:58:29 PM , Rating: 2
Yet another novel from the Apple iTool, never fails...

Seriously, how much does Apple pay you?


RE: Yawn...
By Tony Swash on 5/27/2012 3:04:32 PM , Rating: 2
quote:
Yet another novel from the Apple iTool, never fails...

Seriously, how much does Apple pay you?


It must be really galling to have nothing substantive to say. This is a discussion forum, people debate, people have different opinions, people disagree, sometimes strongly, that's the point.

Standing on the edge just hurling insults around is juvenile. Grow up.


RE: Yawn...
By Cheesew1z69 on 5/27/2012 8:23:27 PM , Rating: 2
People debate huh? Sure, most people, but most people don't blindly defend one company no matter the circumstance.

So answer me, how much is Apple paying you to troll? Your go to guy, was found to be a fraud and on Oracle payroll. Funny how you never posted in that article defending him.

Grow up? LOL...perhaps you should get a life?


RE: Yawn...
By Cheesew1z69 on 5/27/2012 8:26:36 PM , Rating: 2
Also....

quote:
The Dunning–Kruger effect is a cognitive bias in which unskilled individuals suffer from illusory superiority, mistakenly rating their ability much higher than average. This bias is attributed to a metacognitive inability of the unskilled to recognize their mistakes.[1]


100 percent you...yet you try to point it towards other people...funny how that works...


"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke














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