Apple taking on Samsung in South Korean court; might switch suppliers

Discussion in 'Apple, Inc and Tech Industry' started by *LTD*, Jun 24, 2011.

  1. *LTD*, Jun 24, 2011
    Last edited: Jun 24, 2011

    *LTD* macrumors G4


    Feb 5, 2009

    Apple taking on Samsung in South Korean court; might switch suppliers

    Apple confirmed Friday that its bringing its patent litigation against partner and rival Samsung to the electronics maker's home-based of South Korea, the latest move in a high-stakes feud over who copied who in the booming mobile device market.

    "We have filed a lawsuit against Samsung with the Seoul Central District Court," Steve Park, a spokesman for Apple Korea, reportedly told Dow Jones Newswires.

    "It's no coincidence that Samsung's latest products look a lot like the iPhone and iPad, from the shape of the hardware to the user interface and even the packaging," Apple Korea said in a separate statement issued Friday. "This kind of blatant copying is wrong, and we need to protect Apple's intellectual property when companies steal our ideas."

    For its part, Samsung has vowed to "continue to actively defend and protect" its intellectual property and to ensure its "continued innovation and growth in the mobile communication business."

    Specifically, the filing made June 22nd with the Seoul Central District Court alleges that Samsung’s Galaxy S smartphone copied the design of Apple's third-generation iPhones.

    Allegations in the legal spat between Apple and Samsung have been mounting since Apple first sued Samsung in the U.S. this past April.

    "Rather than innovate and develop its own technology and a unique Samsung style for its smart phone products and computer tablets, Samsung chose to copy Apple's technology, user interface and innovative style in these infringing products," Apple alleged in its initial complaint.

    Samsung quickly shot back with its own lawsuits in Korea, Japan, Germany and the U.S.

    After a request by Apple to see prototypes of unreleased Samsung tablets and smartphones was granted by the court, Samsung issued a similar request asking to see finalized versions of the so-called iPhone 5 and iPad 3.

    Apple responded by characterizing the request as "attempts to harass." A U.S. Circuit Court judge agreed with the iPhone maker last week, denying the request, which she characterized as overreaching.

    Apple this month also strengthened the language of its accusations, alleging that Samsung was "even bolder" than other competitors in "slavishly" imitating the iPhone and iPad. The company also added a dozen of Samsung's devices, including the Galaxy Tab 10.1 and the Galaxy S II, to its complaints.

    The relationship between Samsung and Apple is made even more complicated by the fact that Apple was the company's second-largest client last year with close to $5.7 billion in orders. Apple has said that Samsung remains a valuable component partner in spite of the suit.

    "We felt the mobile communication division of Samsung had crossed the line, and after trying for some time to work out the issue, we decided we needed to rely on the courts," Apple chief operating officer Tim Cook said.

    In a potentially-related aside, the Chinese-language Commercial Times issued a report Friday suggesting that Apple may dump Samsung as its manufacturer of embedded mobile processors with the advent of its A6 chip in 2012. According to the report, Taiwan Semiconductor Manufacturing Company (TSMC) "stands a good chance" of picking up the iPhone maker's business.


    Last part is most interesting. Looks like Apple might have found a replacement. Probably wasn't too difficult, either.
  2. Hellhammer Moderator


    Staff Member

    Dec 10, 2008
    Samsung makes far more than just CPUs for Apple. Panels, hard drives, RAM etc are made by Samsung (and many others). I don't think this is the first rumor about switch to TSMC either.
  3. sysiphus macrumors 6502a


    May 7, 2006
    Can you give some source to substantiate the "probably wasn't difficult" part?
  4. *LTD* thread starter macrumors G4


    Feb 5, 2009
    When you're Apple and your products are in absolutely insane demand, suppliers will want your business.

    Apple already has a relationship with TSMC, and they couldn't wait to do work for Apple. But that's only one example. God know how many more suppliers are making plays for Apples business. We do know that Sharp's name has come up in the past as well.;content

    Lots of non-Samsung possibilities.
  5. *LTD*, Jun 27, 2011
    Last edited: Jun 27, 2011

    *LTD* thread starter macrumors G4


    Feb 5, 2009
    Apple rumored to move production of custom 'A6' chip away from Samsung in 2012

    Apple rumored to move production of custom 'A6' chip away from Samsung in 2012

    Apple is rumored to further distance itself from its rival Samsung starting with the "A6" chip in 2012, when the iPhone maker will allegedly transition production of its custom ARM chips to a new chipmaker.

    Citing "numerous sources in the semiconductor industry," Ars Technica reported on Monday that Apple is likely to tap Taiwan Semiconductor Manufacturing Company to build its next-generation "A6" chip in 2012. Author Chris Foresman characterized chatter about a deal between Apple and TSMC as "deafening."

    "It seems likely that Apple is making the change to cut some, if not all, Samsung-made components out of its supply chain," the report said.

    The current A5 processor found in the iPad 2 is built on a 45nm process by Samsung. But Apple and TSMC are rumored to build the next-generation A6 ARM CPU based on a 28nm process.

    Apple's desire to move away from Samsung stems largely from teh fact that the two companies are engaged in a series of lawsuits against one another. Apple has accused Samsung of copying the look and feel of the iPhone, iPad and the iOS mobile operating system, while Samsung has sued Apple and accused it of patent infringement.

    The growing legal battle makes for an uneasy situation between the two companies, as the success of the iPhone and iPad has made Apple the largest customer of Samsung. Apple is expected to buy some $7.8 billion in components from Samsung this year.

    Rumors of a partnership between Apple and TSMC are not new. Back in March, it was claimed that Apple could align with TSMC on an even faster timetable, having the company produce A5 chips for the iPad 2 and anticipated fifth-generation iPhone.

    Earlier rumors suggested that Apple and TSMC had already entered into a foundry agreement, though Monday's report suggests that such a deal was not reached. But both reports also noted that Apple's interest in TSMC is at least partially a result of the fact that there are few options for system-on-a-chip fabrication outside of Samsung.

    In May, it was suggested that Intel has shown interest in producing Apple's mobile chips like the A5. Ars characterized that development as a "remote possibility," only if Apple could combine its low-power custom ARM designs with Intels' new three-dimensional 22nm transistor process.


    I'd love to witness the "exchange of words" between the management of the semiconductor division and the mobile phone division behind closed doors.



    My thanks to the mods for merging the stories.
  6. *LTD* thread starter macrumors G4


    Feb 5, 2009
    The next chapter in the saga:

    Samsung files U.S. ITC complaint against Apple: Long-time partners heading for ugly divorce?

    Florian Mueller reports for FOSS Patents, “The ITC website shows that yesterday Samsung filed complaint no. 337-2824 concerning the follownig types of products:

    Mobile Electronic Devices, Including Wireless Communication Devices, Portable Music and Data Processing Devices, and Tablet Computer

    “[T]he proposed respondent is Apple Inc., Cupertino, California.”

    Mueller reports, “The combination of the accused products and the defendant means that Samsung is asking for an import ban against the iPhone, iPad and iPod. If the ITC agrees to investigate such a complaint (which is pretty certain to happen here), a final decision is reached within 16 to 18 months.”


    "We're taking our toys and leaving!"

    If the ITC agrees to investigate such a complaint (which is pretty certain to happen here), a final decision is reached within 16 to 18 months.”

    Good luck, Sammy. Will it take 16 to 18 months to come up with a viable competitor to the iPad? One would hope they'd use their time wisely.

    Out of Korea and into China. Sounds like a fair deal.

    Has Samsung complied with the court order to produce their knockoff devices for Apple's scrutiny?
  7. *LTD* thread starter macrumors G4


    Feb 5, 2009
    The latest . . .

    Samsung warns of weakened demand for chips, displays amid Apple dispute

    “Apple manufacturing partner Samsung has warned of weak growth on chip orders and a downturn on displays, in what could be construed as a evidence of Apple’s alleged plans to transition component purchases away from the competitor with which it is currently engaged in a patent infringement suit,” Josh Ong reports for AppleInsider.

    “Samsung executive Kwon Oh-hyun cautioned that the company’s semiconductor and flat-panel display businesses, which provided 70 percent of Samsung’s operating profit last year, are experiencing difficulties, The Wall Street Journal reports… Though reports last week had suggested that the move was a financial decision to hide losses in Samsung’s display unit among profits from its semiconductor business, Kwon’s most recent comments suggest that the company’s chipmaking operations may be faltering as well,” Ong reports.

    Ong reports, “Meanwhile, Apple and Samsung are locked in a heated legal battle after the Cupertino, Calif., company sued the Korean electronics giant in April, alleging that Samsung had copied the look and feel of the iPhone and iPad. Last week, the iPhone maker filed for a preliminary injunction that would block for of Samsung’s products while the case is being resolved… Rumors have swirled that Apple is planning to move away from Samsung when it begins production of the so-called “A6″ processor in 2012. Apple will reportedly turn to Taiwan Semiconductor Manufacturing Company for production of the chip.”


    What's being suggested here is that Apple's far more important to Samsung's business than previously thought.

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