Monday, February 11, 2013

Reuters analyzes the history between Apple and Samsung Desamor

In a report published yesterday, Reuters wrote about the Apple vs saga. Samsung, report has provided interesting information about the troubled relationship between the two companies, given the complicated legal wars currently being waged.

The late Apple CEO Steve Jobs said that war was going to mount a "thermonuclear" against Android and Samsung for copying Apple's designs. However, some sources reveal that Tim Cook was opposed to going into litigation with Samsung, because Samsung is one of Apple's key suppliers.

"Tim Cook, Jobs' successor as CEO of Apple, was opposed to suing Samsung in the first place, largely due to the critical role that the Korean company is a supplier of components for the iPhone and iPad. Apple made ​​purchases of components by Samsung with an estimated value of 8,000 million dollars last year. "

The report also mentions the words Jeff Williams, Apple's chief operating officer, who told Reuters last month that "Samsung is an important partner and having a strong relationship in the supply side."

Apple vs Samsung 373x350 Reuters Analiza la Historia de Desamor entre Apple y Samsung

Apple and Samsung, Enemies forever?

Tim Cook's position, wanting to settle rather than litigate, it is not surprising, considering that he met with Choi Gee-Sung, CEO of Samsung, in May last year to discuss possible resolutions to patent litigation that companies had long-outstanding.

The article also details how Steve Jobs in 2005, stressed the importance of the market for NAND flash memory, which Samsung commanded a 50% market share.

"The memory market in 2005 was extremely unstable, and Apple wanted to make sure you have a supplier that financially solid. Samsung had 50% share of the NAND flash memory market at that time.

"Whoever controls the flash consumer electronics controls," Jobs said at the time, according to a source familiar with the discussions. "

As the iPhone gained popularity, Samsung played down his success in public, but privately they seemed to be quite altered:

"" The popularity of the iPhone is a mere result of the excitement caused by some Apple fans, "said the former president of Samsung, Choi GS in 2010.

"The emergence of the iPhone means it's time to make a change in our methods," words of JK Shin, head of Samsung's mobile business, its employees in early 2010, according to an internal email submitted as evidence to the court of EE . States. "

Whenever Samsung executives visited Cupertino, Jobs and Cook complained to them, assuming that they would change their designs. That, of course, never happened.

"Cook, concerned with the relationship with this supplier critic, opposed sue Samsung. However, Jobs had run out of patience with the suspicion that Samsung was using the relationship he had with Apple supplier for protection from retaliation for the copying of their designs. "

Apple is continually trying to move away from its dependence on Samsung as a supplier of chips, moving closer to TSMC for their needs chip, indicating that the business relationship between the two companies and is not guaranteed. Although the dispute between the two companies had a dramatic touch on almost all news media, a lawyer who watched the Apple and Samsung executives said that was not an exaggeration:

"People are taking this news as a kind of drama and enhancing it to the maximum, but the business reality is that things are not as hot as they want to paint it."

The business model of Samsung is flooding the market with a lot of smartphones for everyone, from cheap and simple, to the high end (according to Mirae Asset Securities, Samsung has 37 models on the market today), while Apple has remained consistent with a single line of high-end, with only a couple of models of iPhone on the market at once.

Despite the different approaches that have market, both companies continue to dominate the market share of smartphones, but Apple is the one that gets more benefits.

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Track | iPhoneinCanada

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