Wednesday, October 19, 2011

A Closer look at Samsung and Apple's Relationship

According to the Korea Times earlier this week, Samsung would be responsible for the production of Apple's A6 processor. It has been confirmed that executives of the two companies have sat down to talk about their supply-side relationship. Many people don't know the complexity of the two companies relationship or the fact that Apple accounted for around five percent of Samsung’s entire revenue this year through its parts and component ordering. Sounds strange if you follow the news headlines about all the patent infringement lawsuits that fly back in forth between Samsung and Apple huh?

Samsung and Apple are currently locked in legal battles around the globe with lawsuits filed in France, Japan, the United States, Australia and the Netherlands, among other countries. 

The two technology titans have been locked in an acrimonious global battle over Smartphone and tablet patents since April. Apple has successfully blocked Samsung from selling its latest tablets in Germany and some Smartphone models in the Netherlands. Read more here.

Samsung COO Lee Jae-yong said Wednesday (via Yonhap News) that despite those problems, Samsung will definitely continue to supply parts to Apple until 2012. Lee also discussed with Apple CEO Tim Cook on Monday how “best to supply even better parts” for the 2013-2014 period at a meeting following a memorial service for Steve Jobs.

Will the recently released Galaxy Nexus be a catalyst for more Samsung vs. Apple patent infringement battles?

Samsung specifically designed the Galaxy Nexus to avoid patent lawsuits from Apple, Samsung’s mobile chief Shin Jong-kyun told Yonhap News Agency Wednesday. “We will see if it will be 100 percent free” from patent infringement lawsuits, he explained. We will see.

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