Now it's Samsung's turn to sue Apple

Now it's Samsung's turn to sue Apple

Summary: Days following a lawsuit fired by Apple at Samsung, Samsung now responds with a lawsuit of its own.

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TOPICS: Apple, Legal, Samsung
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Days following a lawsuit fired by Apple at Samsung, Samsung now responds with a lawsuit of its own.

In the lawsuit, filed in in South Korea, Japan and Germany, claims that Apple has infringed on five of Samsung's patents.

In a statement Samsung had this to say:

"Samsung is responding actively to the legal action taken against us in order to protect our intellectual property."

Where will this end up? No idea, but it is important to note that Samsung is a major supplier of components and LCD screens to Apple, so this legal action could end up having repurcussions that go beyond this legal action.

Topics: Apple, Legal, Samsung

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52 comments
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  • RE: Now it's Samsung's turn to sue Apple

    Samsung has their hands in nearly as many different consumer items as GE does. Apple better be shopping for new screen supplier, as Samsung could easily run short on supplies. While Apple's business is probably very lucrative, I really don't think that loosing Apple as a customer is going to mean all that much to Samsung.
    bigsibling
    • RE: Now it's Samsung's turn to sue Apple

      @bigsibling
      Well it depends. No company would want to lose a big account like Apple.
      Ram U
      • That's right

        @Rama.NET
        because it's not all about what a big account like Apple is doing for you today, it also what they can and do with you tommorrow.

        Imagine losing an account like Apple only to find out that next year, in addition to their tablets, they where going to add touchscreens to all of their computers, too.
        Will Farrell
      • RE: Now it's Samsung's turn to sue Apple

        @Rama.NET Considering Apple wants cheap prices on everything, Samsung could afford to lose them. I know if I was CEO of Samsung I would have cut off supply for their CPU's (A4, A5, etc) and their memory (basically all memory in Apple devices is Samsung made) and their LCD screens.
        Jimster480
      • RE: Now it's Samsung's turn to sue Apple

        @Rama.NET
        I know I'm late on this story but:

        That may be true but apple is a small piece compared to Dell, HP, Sony, HTC, etc. Now Apple may just be using Samsung LCDs as to where the others use LG also. I know for certain HP and Dell buys based on availability and cost.
        Free Webapps
      • RE: Now it's Samsung's turn to sue Apple

        @Jimster480 What, no other company wants volume/cheap pricing? They are the only company that has figured this out? Fact is that they buy in volumes that allow them to get cheaper prices which is common practice in pretty much any business. If Apple is buying in higher volume than everyone else let alone making financial and long term purchasing commitments then they should get better pricing. If you were CEO of Samsung and pulled a childish move such as cutting off supply one of two things would happen. Most likely the board would get rid of you as quickly as possible before you hurt the company anymore. If that didn't happen stock prices would drop as investors saw a lack of common sense leadership and storm clouds on the horizon of Samsung future further hurting the future of the company.
        non-biased
    • Plus....

      @bigsibling

      there are probably good reasons why Apple went with Samsung as a supplier, such as features, quality and price. It might also hurt Apple to have to go elsewhere. These things often cut both ways.
      Economister
      • It is not matter of wishes; both Samsung and Apple can not move from each

        @Economister: ... other: Samsung because it can not loose like $8 billion a year in sales ($5.7 billion) more than $1 billion in net profits, and because many of plants will go bankrupt without Apple. Overall the damages will amass in billions of dollars if Apple will go away.

        And Apple can not actually really go away since there are no any free, unloaded facilities in the world that are waiting for ephemeral case of Apple dumping Samsung and moving out is $8 billion a year worth of component purchases to them.

        Small note: <b>Samsung is not most important LCD provider since it has no licence for IPS technology.</b> So Apple uses their matrices only in MacBooks and iMacs. Standalone displays, iPhone displays, iPod touch displays, iPad displays are done by other companies.
        DDERSSS
    • RE: Now it's Samsung's turn to sue Apple

      So many narrowly focused views here. Take the blinders off people, Apple is all about a few tech items, Samsung, on the other hand, builds and makes a plethora of different items, some for business, many for consumers. They are a company that makes tech items, but they are really not just a tech company.
      bigsibling
    • RE: Now it's Samsung's turn to sue Apple

      I agree. Apple's suing Samsung is a sign of acceptance by apple that its Galaxy S series is a success and is a competitor to Apple's iPHONE. Apple is delayed in LTE and there are products from Samsung with superior features.

      Having said that, while losing Apple means that Samsung may lose some revenue, it might actually improve profit margins for Samsung. Apple squeeze's it suppliers to the core. It also means Apple will not have access to Samsung technology in display, processor innovations and memories etc. This takes the game to a very interesting dynamic... But having seen their Galaxy S line, I dont have any doubt that Samsung will give Apple a run for its money.

      In this market, it is fast proving that while early leader has an advantage, innovation at any stage buys customers ..
      s_kantheti
      • RE: Now it's Samsung's turn to sue Apple

        @s_kantheti Nice job jumping to the conclusion that Apple suing means they are accepting anything regarding the Galaxy line. It's all a game that big businesses in any market do all the time and most likely has far more to do with overall negotiations than anything else.
        non-biased
  • Apple is Samsung's Largest Customer

    Apple is not just a "large" customer for Samsung, they are Samsung's largest customer.

    And Apple has the financial power ($65 Billion in Cash) to work with favored suppliers in new plants and/op plant upgrades.

    Plus the ability to pre-pay component orders.

    Not a good customer to shaft.
    Ken_z
    • &quot;Shaft&quot;?

      @Ken_z

      Do you know ANY facts at all or are you just blabbering?
      Economister
    • RE: Now it's Samsung's turn to sue Apple

      @Ken_z Apple is a large part of their business, but not "most" of it. If Sammy refused to supply Apple, they would probably not be able to design in a second source for almost a year. Yes, a year. That's what it takes to completely replace a major part...like the processor Samsung makes for you in their fab, or the LCD. If Apple lost a years business and market interest...they would not recover. Remember iPhones are currently 50% of all Apple sales.
      timspublic1@...
      • yes, a year

        @timspublic1 ((( "If Sammy refused to supply Apple, they would probably not be able to design in a second source for almost a year." )))

        Apple has been buying its components in huge quantities (roughly a year's worth at a time... yes, a year) and paying upfront, in cash, from its $60+ billion bank account. "Sammy" isn't going to be turning away multi-billion-dollar orders, or breaking any signed, paid-for contracts from their largest customer.
        buddhistMonkey
      • RE: Now it's Samsung's turn to sue Apple

        @timspublic1@... <br><br>I'd be surprise if Apple weren't in talks with other suppliers long before they sued Samsung. Just take a look at the iPod and the number of different suppliers Apple have used over the past decade. No one company will bring down or slow their operation so long as Jobs is running the show. This is the same company that were testing Intel chips on their Macs while at the same time signing new contracts with IBM (PPC). They plan well in advance for the future! <br><br>Besides this type of lawsuit takes time and contractual obligation needs to be fulfilled. So Sammy can't just suddenly refuse to deal with Apple.
        dave95.
      • Apple isn't Samsung's largest customer

        @timspublic1@...
        Samsung's a 172.5 billion dollar business. They can afford to go head to head with Apple if the have to.
        Will Farrell
      • RE: Now it's Samsung's turn to sue Apple

        @timspublic1@... At last someone with a realistic take on the situation. With domestic revenues of $175 billion, plus an unknown revenue from all it's overseas subsidiaries - at least the same again if not more, and no shareholders to satisfy, Samsung's position is a strong one. While nobody likes to lose an account, the loss of Apple's custom will not harm a conglomerate this size
        alec.wood@...
      • Again, Apple is Samsung's largest customer

        @timspublic1@...

        That position was discussed by senior Apple execs at their latest earnings report.

        Maybe not "most" of their business, but their "largest customer".
        Ken_z
      • RE: Now it's Samsung's turn to sue Apple

        @timspublic1@... Also, excess capacity is not laying around. If someone took over supplying Apple, then others would have to go to Samsung to get supply.
        Regulator1956