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Samsung maintains focus on component partnerships with Apple

updated 02:28 pm EDT, Mon August 27, 2012

Internal 'firewall' separates business units

After taking a significant blow in US courts for patent infringement in an ongoing legal battle with Apple, Samsung is reportedly working to ensure that the conflict does not pollute the companies' component partnerships. The Korean company is said to have held an emergency meeting in Seoul on Sunday, as executives talked of maintaining an "internal firewall" between the company's phone segment and component supply group, according to a Reuters report.

Both players are fierce competitors in the smartphone and tablet markets, and to a lesser degree in the consumer computer business, however many of Apple's products, including the iPhone and iPad, rely on Samsung components such as display panels and memory.

Samsung attorney Charles Verhoeven has suggested that more than a quarter of the component cost of the iPhone is sourced from the Korean conglomerate. Jurors in the case against Apple outlined a damage award totaling over $1 billion, which could be tripled due to willful infringement, however the parts deal is estimated to be worth much more.

"Apple needs Samsung to make the iPhone and iPad. Period," said KDB Daewoo Securities analyst James Song. "Samsung is the sole supplier of Apple's processing chips and without Samsung, they can't make these products."

Despite the promise to embrace Apple as a component customer, the Korean company has vowed to keep fighting its American competitor in courtrooms around the world.

by MacNN Staff




  1. DrugStudy

    Fresh-Faced Recruit

    Joined: 08-27-12

    Apple wining over Samsung is good news for those of us who use their technology. In the Pharmaceutical Drug industry, there are brand name drugs that a sponsoring drug company invested a billion dollars in and brought it to market via the decade long IND process. For example, Pfizer studied Sildenafil and after a decade and a billion dollars they brought Viagra to the market to treat ED. They are subsequently awarded a period of “exclusivity” where generic drug companies are not allowed to “copy” Sildenafil. Someday, generic Viagra will become available. When it does, everyone will still desire brand name Viagra but will strongly consider generic Sildenafil as after all, maybe the erection will be good enough to make it cost effective.

    In a similar manner, Apple deserves a reward for inventing the technology that Samsung so slavishly copied. The question may be for how long does it deserve exclusivity and patent protection? Drugs like Viagra get about a decade on the average. The song, “Happy Birthday,” receives royalties in perpetuity generations after its original writer is dead and gone. So every time you hear Happy Birthday on TV, someone is receiving a check.

    Some time between Viagra and Happy Birthday should be fair for Apple.

  1. hayesk

    Professional Poster

    Joined: 09-17-99

    Apple is actively shifting away from Samsung technology, but they still need them today. I don't expect this to be a problem. Business is business, after all. Also, Apple has contracts for the next several years. If Samsung decided to get childish and pollute their other lines of business, Apple still has time to move away.

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