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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 2:24:47 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.

Looking at a 4 inch 4G iPhone 5 with IOS6 compared with the Galaxy S3, the iPhone is left lacking. Fast forward 3-4 months and we will have a new generation of even better Android devices and the iPhone 5 will still have another 3 quarters to go in its lifecycle. Next year looks like a rout for Android makers.


I will pass on your wishes of good luck and your advice the next time I meet up with Tim Cook to pick up my secret payments from Apple. Shit! I didn't mean to give that away!

I am sure Tim will be pleased you are wishing him well given the tough year that he and Apple have had since he took over. I good indicator of how bad it's been is the fact that Apple's share price has almost doubled in the last year. If it goes on like this poor beleaguered Apple will be worth only a trillion dollars in year or so. What a terrible fate. This is such a grim time to be an Apple fan, only eight new products expected in the next few weeks and the company at death's door.

Apple really is doomed!


RE: Good luck Apple...
By elleehswon on 9/4/2012 2:42:43 PM , Rating: 2
99.9%% of what's on any app store is complete garbage(chrome, google play, apple app store, webos app store, amazon app store). Anyone that says otherwise is completely high. each of those app stores could more than survive on having just 1000, but 1000 good apps if you junked all the other apps.


RE: Good luck Apple...
By lyeoh on 9/4/2012 2:49:34 PM , Rating: 1
quote:
I will pass on your wishes of good luck and your advice the next time I meet up with Tim Cook to pick up my secret payments from Apple. Shit! I didn't mean to give that away!


If you're really one of those Apple Fan/Cultist, you pay Apple. Not the other way around.

I guess you're holding it wrong or something ;).


RE: Good luck Apple...
By retrospooty on 9/4/2012 2:52:25 PM , Rating: 2
I didnt say "doomed" - I said they need to innovate or their marketshare will continue to erode. I notice in all these conversations, and in all your subject changing debates, no-where do you disagree that Apple's pace of innovations has slowed to a halt. You know it, I know it, everyone knows it. The biggest features of the iPhone 5 are features android had 2 years ago(4 inch screen and 4G). You are also as aware as I am that IOS6 hardly a bump from IOS3.

This I dont get... With all that $$$, you would think that Apple would really pour it into R&D. They could really oush the industry forward but they are just fluttering.


RE: Good luck Apple...
By momorere on 9/4/2012 2:57:54 PM , Rating: 2
According to Tony in another thread, crApple has been playing R&D for the entire industry for years now. Of course, just like posts geared towards you, he either changed the subject or didn't post any further on the thread as he knew he had been proved wrong YET AGAIN. It's sad that he fails to see this although we know he truly does but doesn't what to acknowledge it. Typical iSheep.


RE: Good luck Apple...
By retrospooty on 9/4/2012 3:05:58 PM , Rating: 2
"Of course, just like posts geared towards you, he either changed the subject or didn't post any further on the thread as he knew he had been proved wrong YET AGAIN"

Yes, this is typical Tony behavior. Once you post something that shuts him down, he stops responding entirely. This way he can come back a week later and post the same drivel as if he isn't aware. The funny thing is he thinks no-one notices.


"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs














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