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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 Reclaimer77 on 9/4/2012 2:21:32 PM , Rating: -1
quote:
Just really, really hoping that the technology markets of today behave in exactly the same way as yesterday does not make it happen.


And yet that's exactly what you're doing. When faced with Androids massive market share advantage over Apple, you and others quickly fall into: "So what? Apple's extremely profitable and will continue to be so, no matter what".

How profitable will they be at 15% market-share? How about 10%?


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.


"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates














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