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March 11, 2014

Why Apple vs Samsung Legal battles are Marketing Gimmicks

26% Apples Components are made by samsung


Apple loses bid for U.S. ban on Samsung smartphone sales | Reuters: "Apples bid for " stopping Samsung  smartphones from selling in US  got a setback after  A U.S. judge on Thursday rejected Apple's request for a permanent sales ban in the United States against some older Samsung smartphones, as Apple failed in producing meaningful evidence ( according to the Judge  as  Apples  patented features were a significant enough driver of consumer demand to warrant an injunction. 

Apple and Samsung Electronics Co Ltd have been litigating for nearly three years over various smartphone features patented by Apple, such as the use of fingers to pinch and zoom on the screen, as well as design elements such as the phone's flat, black glass screen."

Apple and Samsung battles have seen wrangling over patents , for a long time. Ironically this  inspite of the symbiotic relationship the technology companies have .Consider this Apple is one of Samsung's largest customers, and Samsung is one of Apple's biggest suppliers.Both of them “ use  Taiwanese Supplier  Foxcon for components” based at plant in Shenzhen, China

The above chart by from iSuppli, shows who makes what inside the iPhone and the cost of the components  . Ironically Samsung turns out to be a particularly important supplier of the iPhone components including the flash memory that holds the phone's apps, music and operating software; the working memory, or DRAM; and the applications processor that makes the whole thing work. Together these account for 26% of the component cost of an iPhone.

So that brings us to the question .. Are these legal battles based on market realities or Market Gimmick