Copycat Lawsuit Could Cost Samsung Billions As Apple Moves To Freeze Them Out Of iPad 3 and iPhone 6 Production
Starting in 2012, if you want to see Samsung and Apple together, your best bet is in a courtroom. The two rivals’ “frenemy” status apparently has reached the breaking point, with a “deafening” roar of leaks indicating the Cupertino, Calif. tech giant will dumping Samsung built A5 and A6 processors as part of a larger purge that could completely eliminate the Korean manufacturer from Apple’s entire supply chain.
Apple is expected to introduce the A6 chip in 2012, according to unnamed “semiconductor industry” sources cited by Ars Technica Monday. “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.
Taiwan Semiconductor Manufacturing Company (TSMC) is Samsung’s likely successor. Although Apple reportedly will pay Samsung $7.8 billion for components this year, making the iPhone and iPad maker the Korean firm’s largest customer, the legal back-and-forth between Apple and Samsung have fatally damaged the business relationship. Apple accuses Samsung of ripping-off the iPhone and and iPad’s sleek appearance while Samsung charges the tech giant with patent infringement.
If this report is true, copying the iPhone might be one of the costliest mistakes Samsung has ever made. It’s just a standard rule of business: you don’t try to compete in the same market with your own biggest client. How dumb can you get?
[via Apple Insider]