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Apple is looking to pile on with a Galaxy S III ban, despite that phone not being involved in the case.
South Korean analyst: Samsung "may lack in innovation, but right now, no one can beat Samsung in playing catch-up"

The crippling U.S. patent court $1.05B USD copyright infringement verdict against the world's largest smartphone maker, Samsung Electronics Comp., Ltd. (KSC:005930), is far from over.  

I. Ban 'Em All

Apple, Inc. (AAPL) is pushing the San Jose, Calif. U.S. District Court for the Northern District of California to ban all currently on-sale products that were found to infringe in the case plus another couple products not listed in the case, which include Samsung's flagship Galaxy S III smartphone.  

Apple previously tried to ban the Galaxy S III, but failed.  I predicted it would now try to lump in such a ban on the wings of its massive victory, and indeed it did.
 
If Apple's request is granted, Samsung would essentially be banned from selling any smartphone other than its Focus 2 Windows Phone and its non-Android quasi-smartphones.

In Samsung's home nation of South Korea, shock is in the air.  Days before the U.S. verdict a Korean court had ruled that both companies had infringed on each others' work.  That verdict stood in stark contrast to the American jurors, who decided that Samsung stole a plethora of technologies and designs from Apple, and that Apple stole nothing from Samsung.

Questions of bias persist -- at least one of the jurors had a family member who held a large quantity of Apple stock, according to past reports -- but South Korean analysts fear that there may be a hint of truth in the ruling. They fear that perhaps their culture relies a bit too much on imitation when looking to conquer a new field.  But many of the critics also express feelings of pride in the company.  Even if Apple does "kick it out" of the U.S. market, what Samsung did -- beating Apple in an unregulated market battle -- was impressive.

Comments James Song, KDB Daewoo Securities' Samsung-centric analyst, in an interview with The New York Times, "The ruling makes us reconsider the brand value of Samsung because it depicts Samsung as a copycat.  But a copycat or not, what Samsung has done with its smartphones was a brilliant move.  Look what has happened to companies like Nokia, Motorola and BlackBerry, which didn't do as Samsung did.  Samsung may lack in innovation, but right now, no one can beat Samsung in playing catch-up."

Indeed -- outside of Samsung, nearly ever phonemaker that isn't named "Apple" is in bad financial trouble.  Google Inc.'s (GOOG) Motorola and Taiwan's HTC Corp. (TPE:2498) are both posting disappointing earnings and shrinking market share.  Research in Motion, Ltd. (TSE:RIM) is creeping ever closer to a breakup liquidation/fire sale.  And Nokia Oyj. (HEX:NOK1V) is requiring deep financial support from Microsoft Corp. (MSFT) to stay afloat.

But JoongAng Ilbo, a local newspaper, takes a more cynical bent, commenting in an editorial, "Copying and clever upgrading are no longer viable.  Samsung must reinvent itself as a first-mover, despite the huge risks involved in acting as a pioneer, if it hopes to beat the competition."

II. Can Samsung Stay Ahead of Apple?

South Korean analysts acknowledge that Samsung's phones are "similar" to Apple's and that it arrived cautiously to the smartphone market, versus some other early adopters, such as RIM and Nokia, who plunged in headfirst.  But they point out that for the similarities, Samsung established a unique look for its products, made them cheaper than Apple's, and endowed them with arguably superior hardware.

The company's expertise in display and chip-making gave it a key advantage, when it eventually did elect for a full-on smartphone push.

Anthony Michell, author of “Samsung Electronics and the Struggle for Leadership of the Electronics Industry", tells The NYT, "Koreans do things quicker than almost anyone.  Samsung Electronics and the Struggle for Leadership of the Electronics Industry.  This allows them to change models, go from design to production faster than anyone at the present time. Korean companies continually set themselves challenges, like the challenge to overtake Sony in terms of brand value in the past."

Some say its legacy of rapid adaptation will allow it to survive Apple's patent assault.

Samsung smartphones
Some say despite the pending bans, Samsung may be able to stay ahead of Apple.
[Image Source: Reuters]

Even with Apple seeking to ban all its U.S. Android smartphone sales, Samsung is racing to modify its operating system to remove features -- such as "rubber-band" graphical flourishes that the U.S. Patent and Trademark Office granted Apple exclusive rights to animate in a mobile user interface setting.

If Samsung is able to remove the features, the ban could be reduced from months to days or weeks.

Some analysts are convinced that Apple will actually fall farther behind Samsung in U.S. sales in Q3, despite the damage to its image and potential bans.  Comments Kevin Lee, an analyst at Korea Investment and Securities, "The patent ruling and Samsung’s copycat image will have a negative impact on Samsung’s sales of cellphones and other products.  But Samsung will further widen the gap with Apple in the third quarter, though not as much as expected before the ruling."

And, of course, Samsung also has an appeal of Apple's court win in the U.S. federal court pipeline too -- so it potentially could undo or mar Apple's greatest legal triumph somewhere in the near future.

Source: The New York Times



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RE: Good luck Apple...
By Tony Swash on 9/4/2012 1:35:54 PM , Rating: -1
quote:
Regardless of what your lawyers do , and how well you manipulate the flawed patent system your competitors have surpassed you. You WILL need to start innovating again or your marketshare will continue to erode. 2011, Android outsold iPhone 2.5 to 1. The latest Q2 2012 is now 4 to 1, and that was with primarily Android 2.3x devices.


And yet bizarrely the larger market share you celebrate brings none of the benefits to Android users or developers or OEMs that one might expect, such as more apps, more revenue for developers, a bigger developer community or more profits for the OEMs. And conversely a smaller market share brings none of the disadvantages to iOS that one might expect, given that iOS has more apps, more developers, more developer revenues, and more profit for the handset maker than Android.

It's almost as if this was - gasp - new times and - gasp - the 21s century mobile device technology markets are nothing like the 20th century PC markets.

How could that be :)


RE: Good luck Apple...
By retrospooty on 9/4/2012 1:41:09 PM , Rating: 3
Marketshare will drive the benefits. If Apple doesnt start innovating again, they arent going to have the leverage they have had for the past few years.

I dont think that even you Tony could remain positive aboout Apples innovative pace lately. You see it as well as anyone. They put out a good product every year, but even you has to see how the rest of the industry is passing them by. They really need to come out with something interesting for the iPhone6, because the 5 is just more of the same with specs to match 2010 Android devices.


RE: Good luck Apple...
By Tony Swash on 9/4/12, Rating: -1
RE: Good luck Apple...
By retrospooty on 9/4/2012 2:21:05 PM , Rating: 2
Well, developing apps for a larger market makes more money. Obviously in smartphones, Apple had that crown for the past 5 years. That is changing. Eventually, developers will have to go where the majority platform is. Furthermore, you act as if there is a huge gap. Most "AAA" apps are already on both platforms. It's not like a huge shift is needed. Right now, Apple has an advantage with app/dev support, but not an immense one.

"I thought the party line around here was that Apple didn't innovate."

I never said that. They do drive progress. The initial 2007 iPhone release was a HUGE innovation on the OS front. It changed everything. Since then... not so much innovation. Not any that I can think of. Appl


RE: Good luck Apple...
By retrospooty on 9/4/2012 2:24:08 PM , Rating: 2
Meant to add at the end... Apple has not been making any progress for the past few years. The biggest things that come to mind are the high res screens, and the purchase of Siri... Well, on the Android platform, you can buy phones with larger higher res screens and Google Now easily trumps Siri in speed and funtionality. But, you already know that. You just act as if you dont.


RE: Good luck Apple...
By Tony Swash on 9/4/12, Rating: -1
RE: Good luck Apple...
By retrospooty on 9/4/2012 3:07:52 PM , Rating: 1
"But that's just not true is it. Developers don't follow market share, they follow money, market share is only of interest to developers if it translates into greater sales and greater revenues. Android's greater market share has not translated in to greater revenues for developers. "

Of course they follow the money. What part of this are you not getting, or are you just being obtuse on purpose? From 2007 to 2011, Apple had an advantage. They were ahead of the competition in function and sales. The developer support was there and built up around it. Android last year started to outsell iPhone. Over the next few years what you will see is more and more development favoring Android. Why? Money. At some point as the sales gap grows, as a developer, you will make more $ selling 10 million copies on Android vs. 1 million on IOS. Not the past Tony, nor the present. The future. I think you see this as plainly as the next guy you just arent ready to admit it.

Let me put it this way so your skewed mind can understand (or at least argue the same point).
Android started off behind in features and then caught up and passed Apple. Android started off behind in hardware and then caught up and passed Apple. Android started off behind in sales and then caught up and passed Apple. Over the next few years you will see that Android started off behind in apps/dev support and then caught up and passed Apple. It's not even a large gap to make up. It's just the last little bit of advantage teh iPhone has and its going buh bye.

Have fun clinging to that platform though. I hope it brings you joy.


RE: Good luck Apple...
By momorere on 9/4/2012 3:33:32 PM , Rating: 1
Of course Android users are glued to the rear view mirror. We are simply waving bye bye to crApple as they become smaller and further behind and even more irrelevant.


RE: Good luck Apple...
By Reclaimer77 on 9/4/12, Rating: -1
RE: Good luck Apple...
By retrospooty on 9/4/2012 2:28:06 PM , Rating: 2
Yup... One big point he misses:

From 2007 to 2011, Apple had an advantage. They were ahead of the competition. They use that to milk profits. Good for them, they desevred too. A good example of that is the Sprint deal. Sprint wont break even on the iPhone for 6 years per their own accounting. At the time, Apple could force customers and vendors to pay more because the alternative sucked... Now the alternative not only caught up, but it surpassed Apple.

If Apple were to go to Sprint with the same #'s today, Sprint would never take it. The days of Apple's heavy bargaining power are over and so are the sweetheart carrier deals.


RE: Good luck Apple...
By Pirks on 9/4/2012 3:34:07 PM , Rating: 2
Well, so far market confirms Tony's point of view. No matter what Android sales is, Apple continues to get the ever larger and larger profits from the market, leaving peanuts/remnants to Android OEMs. I trust Tony more than you because market confirms his point, not yours.

I start believing in your "market share power" only after I see Apple's profits decline and Android OEMs grow, i.e. when actual MONEY and major dev studios start moving from iOS to Android and declare Android to be their primary MONEY MAKING platform. So far Android has been a second class also run. Even with its market share win and what not.

Tony is right. Market share means shit. Apple's huge profits are proving this again and again and again. Deal with it :)


RE: Good luck Apple...
By Reclaimer77 on 9/4/2012 3:48:08 PM , Rating: 2
Yes let's pretend that all of that money comes from a single phone model that's on a 15 month release cycle? Not tablets or iTunes or eBooks etc etc, just the iPhone? I don't think so.


RE: Good luck Apple...
By Pirks on 9/4/2012 4:19:58 PM , Rating: 2
How is this related the fact that iPhone still takes almost all the profit in the market? Nice try to change subject, Reclaimer, but you failed again.

I'm repeating for all the really slow and ignorant people like you: the issue is not the huge Apple's profits per se, the issue is that these profits don't leave much to other OEMs. As soon as Apple's profits from mobile market go down significantly and start to resemble smth like 30% of all the market's profit - THEN I'll start bothering about your "market share" thing.

Is this clear enough now?


RE: Good luck Apple...
By Reclaimer77 on 9/4/12, Rating: -1
RE: Good luck Apple...
By Pirks on 9/4/2012 5:12:21 PM , Rating: 3
I heard you falling down on your head and losing your ears and front teeth so don't yawn or you scare people


RE: Good luck Apple...
By jimbojimbo on 9/4/2012 4:30:47 PM , Rating: 2
and their overpriced computers and their extremely overpriced accessories.


RE: Good luck Apple...
By retrospooty on 9/4/2012 5:01:24 PM , Rating: 2
Most of it comes from the phones and the overpriced deals they made with the large carriers. Those sweetheart deals wont happen anymore either since there is better alternatives out there for the carriers.


RE: Good luck Apple...
By retrospooty on 9/4/2012 4:04:41 PM , Rating: 2
Pirks, you agreeing with Tony just cements my point, because you are a complete and total doofus when it comes to looking at the obvious business trends coming in the near future. Based on your logic, RIM was doing great in 2011, as a matter of fact, you insisted on it. Things change and those that dont innovate, die. Right now, Apple isnt innovating. They really havent innovated anything since the initial iPhone release in 2007. Android went from zero to 4x Apple's sales in just a few years. Android went from zero to supassing iPhone in features, hardware and sales. If you and Tony cant see the writing on the wall with that then you need glasses.


RE: Good luck Apple...
By Pirks on 9/4/2012 4:06:09 PM , Rating: 2
Yeah good luck equating RIM and Apple LOL :)))


RE: Good luck Apple...
By retrospooty on 9/4/2012 4:16:08 PM , Rating: 2
again, reading comprehension isnt your strong point. I am not equating RIM and Apple. Apple makes products that people want. RIM makes nothing that anyone wants. My point is only that at some point, the dramatic gap in sales will favor Android app development. At some point selling 10 million copies on Android will outweigh selling 1 million on IOS. Apple needs to innovate to stop eroding marketshare, the iPhone5's main features existed 2 years ago on Android. It's not innovation, its just copying what android had 2 years ago.


RE: Good luck Apple...
By Pirks on 9/4/2012 4:32:55 PM , Rating: 1
quote:
At some point selling 10 million copies on Android will outweigh selling 1 million on IOS
I'm still patiently waiting for your prediction of RIM sale to become reality, so if you excuse me I'll be kinda cautious in believing you next one about Apple and Android, at least until your first one about RIM turns out to be true. Don't trust the prophet until you see that his predictions are real deal, not a usual bullshit. That's my motto. You're yet to pass this test retro.


RE: Good luck Apple...
By retrospooty on 9/4/2012 4:59:12 PM , Rating: 2
Your "test" is not worthy of my submission. I don't need to show you anything when it comes to RIM. I will Let RIM's last two (and next two) quarterly reports speak for themselfes. I was 100% right all along, and you were 100% wrong. Its not at all prophetic, its just being observant. Here's another simple nugget of truth for you. The US debt cant go on as is forever either. It doesnt take a whole lot to see what is obvious. It does take a whole lot of denial to miss it.


RE: Good luck Apple...
By Pirks on 9/4/2012 5:27:28 PM , Rating: 2
quote:
its just being observant
When I observe Apple's profits go down and Android's profits go up - then I start thinking about market share. Not before.


RE: Good luck Apple...
By retrospooty on 9/4/2012 6:12:12 PM , Rating: 2
Carnak says 2013 will be clearly showing the beginnnings of the shift.


RE: Good luck Apple...
By Pirks on 9/4/2012 7:45:07 PM , Rating: 2
Who's Carnak?


RE: Good luck Apple...
By retrospooty on 9/4/2012 9:23:06 PM , Rating: 2
RE: Good luck Apple...
By Pirks on 9/4/2012 9:35:36 PM , Rating: 2
This Carnak the Magnificient guy must be some kind of meme I have no idea about. Still greek to me :)


RE: Good luck Apple...
By fteoath64 on 9/5/2012 2:06:16 AM , Rating: 2
You pretty much concluded that Apple's advantage curve is on the way down and many can see that. The fact that Android has come of age and surpassed iOS makes it compelling for alternatives with more hardware choices and price points compared to a single product platform. The diversity is missing in Apple's offering and is biting them now. One would be able to see that in the iPad Mini's success when that is launched next month. It will outsell the original iPad by 3X volume for sure. That form-factor is "most wanted" in the market and Apple's ignorance has left that market wide open for too long.
For many, on the phone market, iOS has already been "last years tech". Looking forward to JellyBean is the mantra for most Android users.


RE: Good luck Apple...
By Jeffk464 on 9/4/2012 2:52:07 PM , Rating: 2
Apple was the first to put everything together in a nice very usable package. But the race was on when they did it, MS previously released tablets, palm combined PDA's and phones, etc.


RE: Good luck Apple...
By BifurcatedBoat on 9/4/2012 8:08:55 PM , Rating: 1
They did innovate, but they didn't invent. There's a difference, especially when it comes to patents.

If Apple wasn't a company based on copying everything, right down to their company name (copied from Apple Corps), then I might be more sympathetic to their position.

This company was all about copying though. That was their MO for decades. Copy, take ideas, whatever needs to be done, just do it, and settle the lawsuits with whoever you stepped on later. It's the hypocrisy that's most irritating.


RE: Good luck Apple...
By GotThumbs on 9/5/2012 3:33:21 PM , Rating: 2
Market share not as much an issue as you may think.

Just try and leave Apple and take your content with you.

Divorcing Apple will cost you a bundle in lost content.


RE: Good luck Apple...
By AmbroseAthan on 9/4/2012 1:42:55 PM , Rating: 2
That's what you expected as a consumer, bigger screens to cause a huge increase in app development for Android or profit for the manufacturer? You are a strange consumer.

I expected a bigger screen which would be easier and clearer to see, plus easier to work with being I have bigger hands (I am 6'2"). I got exactly what I expected with a bigger screen phone.


RE: Good luck Apple...
By retrospooty on 9/4/2012 1:48:08 PM , Rating: 2
You have to excuse Tony. He isn't really in sync with reality. He's a die hard Apple fan that really doesn't know anything outside of that bubble.


RE: Good luck Apple...
By Reclaimer77 on 9/4/2012 1:46:03 PM , Rating: 2
quote:
given that iOS has more apps, more developers, more developer revenues, and more profit for the handset maker than Android.


Which means what to the consumer, the end user exactly? Profits and developer revenue's is just an argument for fanbois. The Android app market has more than caught up, all the "killer" Apps are available for it. In fact simply due to Apple's closed garden approach, there are apps for Android that let you do things iPhone users never could.


RE: Good luck Apple...
By retrospooty on 9/4/2012 1:49:50 PM , Rating: 2
"Which means what to the consumer, the end user exactly? Profits and developer revenue's is just an argument for fanbois."

They gotta hold on to what they got and milk it. The list of IOS advantages is really small these days. It's pretty much only app/dev support that even that gap is shrinking.


"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference














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