Apple pays Samsung to design their chips and slap the Apple logo on the processor. Samsung is now paying one [carl sagan] billion for back royalties 
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Samsung Working to Keep Design Dispute Separate from Component Contracts
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Exactly. I bet that the "SAMSUNG phone innovators" actually looked at the blue prints and technical info to copy stuff. Firewall, yeah right
The problem was that it was hard to find out what was patented.
By doing what they did, they actually told Apple to start looking to replace its dependency on Samsung.
Give it 5 years and we'll see the results, assuming Tim has elephant memory!
Such drama. Of course it was not the best trial outcome. It doesn't mean it's also some kind of dire situation.
Remember when Apple decided to settle with Nokia? Apple paid out a half billion in back royalties right away, and unknown amounts since then. Apple also reportedly had to license Nokia some of their patents. Not the end of the world.
Yep, Samsung is still a leader in memory capacity and speed breakthroughs, and production capability.
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Nobody believes that there has been a strict internal firewall between its handset business and its components operations. There was no firewall for blatantly copying between Samsung and Apple.
Most importantly, there was no firewall for those CEO payouts the execs got letting the minions play both sides. Both doors say "Samsung" both sides pay the piper.... It's just one "corporate person" right?
They will move away
Why would Apple keep having Samsung design parts for their phones when they know the Handset division will just copy it?
That's like having Samsung create a "new scanner that can detect life forms 500 ft away... " and then tell Saumsung "now don't tell the handset division and don't change it by 1% in order to beat our copyright on it and shove it into your own devices".
It's like Toyota having GM make a new hybrid engine and PRAY that GM doesn't use it in their own cars.
Come on....They should move away from suppliers who aren't in direct competeion with them as soon as possible.
Off topic: but apple's biggest mistake was the exclusivity deal with ATT. It forced Verizon/Tmobile/Sprint to use Android handsets as that was the only answer to the iPhone. And of course it allowed google to gain market traction. If the iPhone was available on all the carriers within 1 year, you would not see this level of Android penetration.
Oh and having Google on your board of directors wasn't a great idea either. He just took notes and ran back to Google and created Android in 1 year. As if Google was in the phone business before the iPhone came out... Lots of mistakes...
Why would Apple keep having Samsung design parts for their phones when they know the Handset division will just copy it?
That's like having Samsung create a "new scanner that can detect life forms 500 ft away... " and then tell Saumsung "now don't tell the handset division and don't change it by 1% in order to beat our copyright on it and shove it into your own devices".
It's like Toyota having GM make a new hybrid engine and PRAY that GM doesn't use it in their own cars.
Come on....They should move away from suppliers who aren't in direct competeion with them as soon as possible.
Off topic: but apple's biggest mistake was the exclusivity deal with ATT. It forced Verizon/Tmobile/Sprint to use Android handsets as that was the only answer to the iPhone. And of course it allowed google to gain market traction. If the iPhone was available on all the carriers within 1 year, you would not see this level of Android penetration.
Oh and having Google on your board of directors wasn't a great idea either. He just took notes and ran back to Google and created Android in 1 year. As if Google was in the phone business before the iPhone came out... Lots of mistakes...
Apple pays Samsung to design their chips and slap the Apple logo on the processor. Samsung is now paying one [carl sagan] billion for back royalties
Samsung designs Apple chips or just produces following Apple specs?
Just to clarify, Apple designs the chips, and Samsung manufactures them.Apple pays Samsung to design their chips and slap the Apple logo on the processor. Samsung is now paying one [carl sagan] billion for back royalties
Most likely Apple is coming up with some plan to diversify they're suppliers. I would be surprised if they don't have something in motion already.
And you are foolish, if you think semiconductors are Samsungs main business. A good start is:
http://en.wikipedia.org/wiki/Samsung
If Samsung used the A5 or A5X chip designs in their smartphones without permission, it would be trivially easy for Apple to prove it, and it would not require a draw-out trial to get it shut down.
Anyways, the pure hardware technology in iPhones is not what sets them apart.
Samsung needs to not only pay the fine but come up with a royalty agreement on patent usage in order for this to not effect apple's purchase of parts.
Apple uses component purchase contracts to hinder some availability to competitors, let's see how this develops but Samsung is kidding itself if they think apple will believe the pr front of theirs.
Samsung copied apple, now they need to PAY apple, otherwise... They will lose a big component client for the long term.
Apple uses component purchase contracts to hinder some availability to competitors, let's see how this develops but Samsung is kidding itself if they think apple will believe the pr front of theirs.
Samsung copied apple, now they need to PAY apple, otherwise... They will lose a big component client for the long term.
If that's the case, then Samsung should tell Apple to get lost right now.
They would loose a bit of money for sure, but they would also sink Apple's business for the next couple of years. And if Apple isn't interested in perusing a long term relationship - then what have they to loose?
Not sure why apple should "punish" samsung by moving component orders away from them. If they provide the best parts at a reasonable price then that's all that should matter. From what I understand, LG's screens for example aren't as good as the ones made by samsung on the retina macbook.
Aside from that samsung is a large company that make many different products such as washing machines, refrigerators, televisions, etc. It makes sense they are individual parts of a large company
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In other words I don't see why people believe this is a one sided street and samsung has everything to owe to apple. If their parts are better than apple is only hurting themselves and their consumers by moving to supplies that aren't as good. Both companies are making money like this and everyone wins. Business is about more than someone getting their feelings hurt
Aside from that samsung is a large company that make many different products such as washing machines, refrigerators, televisions, etc. It makes sense they are individual parts of a large company
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In other words I don't see why people believe this is a one sided street and samsung has everything to owe to apple. If their parts are better than apple is only hurting themselves and their consumers by moving to supplies that aren't as good. Both companies are making money like this and everyone wins. Business is about more than someone getting their feelings hurt
Apples buys the IP which is necessary for the ARM-cores. P.A. Semi engineers @ Apple design the processor and some manufacturer like Samsung or TSMC manufactures the processor.
And what better ways to see how Apple design and manufacture than from the inside... maybe steal more trade knowhow?
Apple pays Samsung to design their chips and slap the Apple logo on the processor. Samsung is now paying one [carl sagan] billion for back royalties
Apple designs the chips themselves, Samsung only manufactures them for Apple.
Yeah, it wont hurt them as much as people think. MIght affect their chip division though if anything. There have been more and more reports lately giving the impression that the semiconductor division and the mobile division at Samsung don't exactly "get along" too well. Is there any truth to that?
Since Samsung just supplies electronics, and doesn't make Apple device cases or chassis parts, just what do you think they would copy? Obviously not the physical look. Nor the software. Nor even what the device is, exactly.
The most they could figure out is say, that Apple was about to make a 3.5" something because of a huge display order. But then, that info would get out from other factories anyway.
Total agreement. Longterm AT&T exclusivity has to go down as one of the worst business decisions ever.
This oft-repeated fanboy claim makes no sense.
Schmidt didn't start attending board meetings until Sept 2006. Even if he was shown the iPhone under development (and Jobs himself said it wasn't a viable product as late as Thanksgiving 2006), the most it could possibly have given Google is about three months heads up before the iPhone was publicly shown to everyone at the beginning of 2007.
Over the past five years, a few months is nothing.
Google was already planning to be in the phone business. They bought Android back in 2005.
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Where did I say that semiconductors are Samsung's main business? It's a source of significant income, not majority income. Samsung would still be foolish to let that revenue go elsewhere. If you think I'm foolish, you're ignorant.
Samsung and Apple might continue doing business together in the future on components.
But Samsung just gained 1 billion in additional expenses that they will need to be covered.
All in all. You know who's going to be payign for it. Everyone.
Including Apple. Don't be surprised to hear that the next time Apple's contract with Samsung is up, that Samsung's rates go up.
But Samsung just gained 1 billion in additional expenses that they will need to be covered.
All in all. You know who's going to be payign for it. Everyone.
Including Apple. Don't be surprised to hear that the next time Apple's contract with Samsung is up, that Samsung's rates go up.
not necessarily. apple is already looking for alternatives although with limited success. truth is, apple consumes so much of their fab capacity that if apple moves out even in 2/3 yrs time, its likely that samsung will lose money as it will unlikely be able to find a customer with that big fab demand.