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Comment by tzury

13 years ago

Let me figure this out: Samsung manufactures Touchscreen, CPUs and perhaps other chips for Apple, yet Apple sue them from time to time over software patents and design ideas.

Can someone help me understand this?

Gigantic multinational megaconglomerates are, well, huge. They may operate under the same overall banner, but operationally they tend to be almost fully independent entities. Many are legally distinct corporations with their own finances, budgets, and operations.

Apple employing the component manufacturing arm of Samsung can occur simultaneously with Apple suing the consumer device design arm.

  • The current relationship may not last much longer. It's been reported that Apple has signed a deal with TSMC for 2014.

    • That is a great way to damage Samsung for Apple. Initially contracting them with a very high-volume and then dropping off to zero. Samsung will make a huge net-loss, if they don't partner up with Microsoft(=Nokia now) or Google in another big deal.

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Say you sell lumber, and I sell furniture, and buy a lot of my raw materials from you. You start making furniture too, and your furniture seems a little too inspired by mine, maybe going over the line of what's legal, so I sue you. However, your lumber is still top quality despite that, so I keep buying your lumber even while suing you over your furniture.

  • In your example, 15-20% of your lumber sales are to me, so regardless of what happens with the furniture situation, you still want to keep selling me lumber. It's a symbiotic relationship.

If you've ever worked at a company with more than a single employee, surely you've noticed that not all employees necessarily know what the other employees are doing.

Now imagine that scaled up to a giant corporation, with hundreds of thousands of employees, and multiple independent divisions with their own goals, strategies, and financial responsibilities.

Yes, when you are working with a company and sharing trade secrets only to have them turn around and take those secrets to make their own devices that compete directly with yours and then they make commercials making fun of said products and your customers, that doesn't really help the business relationship.

  • I keep hearing this. What are those 'secrets' that you are talking about (Any link which gives specific information?) Samsung has been making phones much before Apple has been. Are those secrets "Rounded phone corners", "icons in a grid", "Slide to Unlock", or "jumping scrollbar"?

    • Detailed definitions of the chips they are making and the strategy/prioritizations they use while upgrading them?

    • If you really think Apple has contributed nothing more to the modern smartphone than 'rounded corners', this is not the appropriate place to ask this question because you risk being mistaken for someone trying to start a flamewar. I recommend quora instead.

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  • It can't have hurt the relationship that bad if Apple haven't sourced a new provider. If I were Apple I'd pull the contract on principle but I'm sure financial forces are at play here.

    • They are doing everything the can to source a new provider. There just aren't that many people who have the manufacturing capacity to produce these chips at scale.

Samsung does a lot of things. They build ships. The left hand doesn't know what the right hand is doing. Well, it does, but it can't do anything about it. This is a big company.

It's simple, unless Apple aggressively defends their patents, Samsung could easily create very competitive clones of Apple's products.

Companies as big as Apple and Samsung have gotten over their egos in favor of profits. Just because one company is suing the other, in no way prevents them from entering other mutually beneficial agreements.

Which part is hard for you to understand? That Apple has patents that are applicable irrespective of the underlying hardware?