Showing posts with label Samsung. Show all posts
Showing posts with label Samsung. Show all posts

Samsung counter-sues Apple over battle for £100bn smartphone industry

Samsung Samsung's rise in the smartphone market is 'quite threatening' to Apple, says one analyst. Photograph: Lee Jin-Man/AP

Samsung Electronics has hit back against Apple with a tit-for-tat lawsuit a week after the US group accused its South Korean rival of "slavishly" copying designs of its iPhone and iPad.

Samsung filed suits against Apple in South Korea, Japan and Germany on Friday, alleging infringement of 10 patents in areas such as data transmission and wireless technology.

The move comes days before it launches a new version of its Galaxy S smartphone, and is the first against Apple, its biggest client as well as a rival. The South Korean electronics maker supplies Apple with microchips, memory chips and other parts. Analysts say Apple would struggle to find a supplier of the same calibre.

Samsung's Galaxy smartphones and tablet computers, which use Google's Android operating system, have emerged as the main competitors to Apple's iPhone and iPad. Apple sold 18.6m iPhones in the last quarter, while Samsung has startled rivals with the rapid growth of its smartphone sales and is estimated to have shifted 13m handsets between January and March. It aims to sell 60m smartphones this year.

"Apple is quite annoyed by Samsung's fast rise in a market which it virtually created," James Song, an analyst at Daewoo Securities, said. "It's quite threatening to see how quickly Samsung plays catch-up, and Apple might have felt a strong urge to put a brake on its march just when Samsung is set to roll out a new smartphone in May ahead of its new iPhone."

Samsung said on Friday that it was "responding actively to the legal action taken against us in order to protect our intellectual property".Apple filed a lawsuit against Samsung a week ago, claiming that its Galaxy design features copy the iPhone and iPad. Its spokeswoman Kristin Huguet said then: "This kind of blatant copying is wrong." The US company brought 16 claims against Samsung, including unjust enrichment, trademark infringement and 10 patent claims. But Samsung insists that the design of its products is the result of its own research and development.

The lawsuits are the latest in the fiercely competitive £100bn smartphone industry. Nokia has sued Apple, while the US company has brought suits against handset makers HTC and Motorola alleging patent infringement.

The global smartphone market is set to grow by 58% this year, with Android devices expected to grow strongly, according to research firm Gartner. It estimates that the tablet market could quadruple to 70m units. The iPad will dominate in coming years, but its market share is expected to be eroded by Android devices and could fall from 69% this year to 47% in 2015.

This year phone companies will struggle to obtain components after the Japanese earthquake led to factory closures. Experts say smartphone sales could drop by up to 5% as a result. Nokia, BlackBerry maker Research in Motion and Sony Ericsson are affected by supply shortages, while others including Apple, Samsung, HTC and China's Huawei are thought to have acted quickly to secure supplies from China, Taiwan and Korea instead.



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Samsung Inks $1.375 Billion Deal With Seagate On HDD Operations And More

Samsung and Seagate this morning announced a broad ‘strategic alignment’ in a move to expand their existing relationship and more effectively counter competitor Western Digital.

The most important elements of the agreement include Samsung combining its hard disk drive operations into Seagate, receiving significant equity ownership in the HDD and storage solutions provider and enhancing the current patent cross-license agreement between the two companies.

In addition, Samsung and Seagate inked a NAND flash memory supply agreement under which Samsung will provide Seagate with its semiconductor products for use in Seagate’s enterprise solid state drives and other products, as well as a disk drive supply agreement under which Seagate will supply drives to Samsung for PCs, notebooks and other consumer electronics.

The combined value of these transactions and agreements is approximately $1.375 billion USD, which will be paid by Seagate to Samsung in the form of 50% stock and 50% cash.

Upon closing, Samsung will receive Seagate shares 45.2 million shares with a total value of $687.5 million, representing approximately 9.6% ownership of Seagate, plus $687.5 million in cash.

The agreement has no financing contingencies, and is subject to customary closing conditions, including review by U.S. and international regulators. The transactions are expected to close by the end of calendar year 2011.

Samsung and Seagate will also collaborate to develop new enterprise storage solutions, and a Samsung exec will be nominated to join Seagate’s board of directors in the near future.

Something like this was bound to happen after rival Western Digital recently announced that it would buy Hitachi Global Storage Technologies for $4.3 billion in a deal that will expand the company’s reach in data storage.

At the end of last year, Seagate reportedly turned down an acquisition offer from Western Digital after being actively courted by private equity firm TPG Capital, which reportedly offered more than $7.5 billion for the company.

Yesterday, reports claimed that Samsung was indeed considering selling its money-losing HDD business for $1 billion to 1.5 billion to raise cash to invest in new growth areas, with Seagate being named as a potential buyer.

Samsung has about 18% of the HDD market, according to iSuppli.

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Apple Sues Samsung, Claims Its Android Devices Are Copycats

The Wall Street Journal reports that Apple has just filed another lawsuit in its legal crusade against Android: a ‘look and feel’ complaint against Samsung phones including the Galaxy S 4G, Epic 4G, Galaxy Tab, and Nexus S, that have allegedly copied “Apple’s technology, user interface and innovative style”. The suit was filed in the Northern District of California on April 15. The fact that the Nexus S is included is important, as this features Google’s stock build of Android 2.3.

And, as the report notes, Samsung is actually a chip supplier for Apple products.

This is only the latest attack in Apple’s war against phone manufacturers who have created popular Android devices.

In March 2010, Apple launched a patent infringement case against HTC that went for the jugular: it cited infringements on “20 Apple patents related to the iPhone’s user interface, underlying architecture and hardware”. The suit was a clear attack on Android (many of HTC’s most popular devices run Google’s mobile OS), and Google was quick to say that it had HTC’s back.

Because the suit was filed with the International Trade Commission, an Apple victory could mean that infringing HTC devices are banned from importation in the US. This morning, the staff of the ITC announced that it recommended against siding with Apple. This is pleasant news for HTC and Android fans, but it doesn’t actually have any consequence — this was just a staff recommendation, and it’s still up to the judge to decide whether or not to ban HTC devices.

And Apple isn’t the only one looking to fend off Android with lawsuits. Microsoft has filed suit against Motorola claiming nine cases of patent infringement (and got HTC to license its patents, likely to avoid a legal dispute).

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