Apple Wants To Starve Samsung Out of the Smartphone Business [Report]

Apple Wants To Starve Samsung Out of the Smartphone Business [Report]

Photo by T-Kim - http://bit.ly/oJaSJz

As you probably know, Apple and Samsung have been battling each other in court over a heated “copycat” lawsuit for awhile now. Apple accused Samsung of stealing the iPhone’s design for Samsung’s own series of smartphones, and Samsung has been retaliating with counterclaims.

Pretty standard stuff. What makes the legal battle between Apple and Samsung more interesting is that Apple has been using Samsung as an internal parts provider for the iPhone. Now that’s about to end. In the midst of this copycat legal battle, it appears that Apple is looking to give Samsung a swift kick to the gut by taking its $5 billion/year parts order business elsewhere.

Samsung Mobile’s chief technology officer, Omar Khan, is leaving the Korean-based company for a job in the mobile division at Citi. Things haven’t been looking good for Samsung, as Apple is starting to gain more traction in the ongoing smartphone lawsuit. In the heat of all this, Samsung has managed to do pretty well in mobile market share, and the company could overtake Nokia as the world’s largest smartphone vendor.

A report from The Globe and Mail claims that Apple and Samsung have become “competitors” instead of “partners,” and that Apple’s best interests will be served by taking its impressive set of electronics supply orders to another manufacturer. Profits at Samsung have been down, and, on top of that, Apple doesn’t want to be affiliated with a company that its fighting in court.

By removing Samsung from the parts supply equation, Apple not only gets to put more distance between itself and Samsung, but Samsung’s sinking ship gets another giant hole. It will be interesting to see how long the smartphone division of Samsung can stay afloat.

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  • Daniel Payne

    I fail to see what Apple stands to gain from all of this nonsense.

  • iDaBoss

    hell yea, die samsung

  • prof_peabody

    fair competition?  knee-capping their chief competitor?  

    seriously, you can look at it nice or nasty and there are ample reasons for doing it either way.  

  • aramishero

    fuxk u

  • techgeek01

    I swear, this website must have extreme jealousy of Android or something.  Literally, every other article is android related somehow.  I have been on plenty of Android websites and such, and you would be lucky to find one apple related article in a week, if that.  Last I checked, this was Cult of Mac, not cult of anti-android.  ;)

  • Donny Wheeler

    Apple has become “that” computer company. You know, the one that hates that one part of market capitalism where you have to compete for customer’s money.

    FFS, the iPhone is wildly popular and has a loyal following. There isn’t much for Apple to do, other that continue making their phone better, which they’ve been doing. But they’ve slowing been becoming “that” company, like a fat kid who wants to eat all the cake, or the school yard bully who doesn’t want anyone else to use the slide.

    I guess their new business model is, “If you can’t outright dominate them out of the market, litigate them out.”

  • Robert Norris Hills

    Fully. Apple is best served by stopping ordering parts from the best manufacturer of pretty much any phone parts in the world…idiots. 

    And FYI to the person who wrote the article Samsung production and Samsung mobile are 2 separate companies, the lawsuits have nothing to do with its production centres. 

    Apple has never deserved the quality of parts Samsung gives them, the world of android will benefit more from this than Apple will. 

  • AnthonyFear

    Good on apple I say – Samsung were just being greedy.

  • mlahero

    Samsung is a sinking ship? Didnt Samsung just sell a ton of SII androids? Apple have got to stop with all these weird competition strangling tactics, their reputation is taking a beating.

  • Steve Pederson

    The screen says it all: knockoff.

    Love or hate Android, it has a distinct look and feel.

    The Samsung phone above doesn’t look like Android. If we take a step back and get out of the details… this is a screen literally trying to fool someone into thinking its something it is not.

    Hey Fandroids… if Android is great then shouldn’t Android phones look like Android phones. And if the manufacturer is adding additional UI to customize… shouldn’t it be something original, not spoofing an iphone screen? I mean seriously 4×4 icons plus 4 in a bottom shelf… the only thing Samsung didn’t do is copy the icons pixel for pixel.

    This is copy copy copy in order to look like something it is not. Shameless and scummy. No respect for Samsung. And if you love Android, Samsung is dissing that too by hiding it. If Android is great then a phone should scream ANDROID loud and proud.

  • Bastian Georg

    Once Apple was the underdog and the Mac-user was a wired and different kind of PC-user – usually the nice guy. And that was Apple’s image and reputation, nice and efficient. MS looked evil, clunky and old-fashion. Now that Apple is becoming so big, they are changing and are becoming what MS once was; the oversized IT-giant that flattens everything in its way and drowns everyone in its wake.

    Well, what can I say; suddenly MS start to look like Mr Nice-guy. After using Apple products for so many years, I really take a shine to Win7 and I’m starting tobe fed up with Apple’s shine fancy looking, mostly under-performing software solutions. Guess my next laptop will be an Asus or HP.

  • Stuart Idehen

    @ Steve Pederson

    You just MADE my day with your comment..U have NO idea how disappointed I was in seeing that a company I used to respect for their elegance and style in TV designs could stoop SOO low in blatant copying???  Now I can’t stand Samsung!

  • Stuart Idehen

    Let me get this straight..

    If you worked hard on a research project and got a crowd of business men who like your idea and want to invest in it, then your neighbor comes along and LITERALLY proposes the same idea but switches up one or two things:

    if you tried to sue or confront the guilty party, your a BAD guy for defending your idea?

    Think about that and put yourself in Apples shoes..

    I ask you this, “what is the POINT of filing for a patent if anyone can come along and use the idea you patented?”

  • Stuart Idehen

    Let me get this straight..

    If
    you worked hard on a research project and got a crowd of business men
    who like your idea and want to invest in it, then your neighbor comes
    along and LITERALLY proposes the same idea but switches up one or two
    things:

    if you tried to sue or confront the guilty party, your a BAD guy for defending your idea?

    Think about that and put yourself in Apples shoes..

    I ask you this, “what is the POINT of filing for a patent if anyone can come along and use the idea you patented?”

  • marioyohanes

    I love both Apple iOS and Android, however, Sammy really messed up their professionalism in this case. I mean common, everyone knows Sammy Android phones looks exactly like iPhone, we don’t need a genius in this. Considering Sammy launch those phones after years became Apple suppliers for iPhone, of course Apple hates this idea, it’s like dealing business with a company where you gave all the design for them to build, then suddenly they copied your design and launch a similar product. That feels like someone stabbing you in the back.

    Business and professional wise, Sammy really messed it up.

  • Rajiv Randev

    Who else out there can provide these components? As an owner of both an Android and an iPhone 4 there is no doubt they are similar, who copied who is obvious, but it doesn’t make sense to go to someone else for the parts, there is a reason they went to Samsung in the first place, this is something Apple will regret long term.  Watch when that first recall happens…

  • Steven Sill

    Actually no… the photo is just the app drawer and not the main home screen.  Photo is just there to stir up crap like your comment.  The how each OS looks and feels is totally different.  My wife has an iPhone which she love and should keep.  I have a Droid Charge and love how customizable it is… and its completely different from iOS.  Touch screens and icons on computers have been around since the 80s…  Apple tried to sue Microsoft and lost, because of Windows looking like the Mac OS and this time will be no different.  The technology and look is nothing unique and its kind of funny how much iOS 5 will look more like Android (notifications and Twitter integration being the biggest).

    At the end of the day Apple is acting like just another patent troll instead of innovating the OS. Android looks less and less like the original iteration with each offering, but iOS is still the same.

  • Manas

    So thats it. iPhones will never get samsung’s brilliant AMOLED technology which not only shows vivid color but saves hours of battery life too.

  • CharliK

    Based on rumors.  But rumors often aren’t true. Then again, who is to say that it was ever going to get it. 

    Samsung needs Apple’s supply orders as much as Apple might need them. Yes there are rumors that Apple is talking to other companies, but perhaps that is merely to compliment  and avoid supply issues like they had with the ipad 2 (which wasn’t helped by the earthquake either)

  • CharliK

    Every company litigates like crazy. You just don’t hear about it because it’s not Apple related and thus it isn’t a draw for hits etc. 

    Also, Apple has to do this as part of trademark. if they don’t protect their mark and dress from all potential violations then they will be seen as not caring and then when someone pulls an even more blatant knockoff they will be powerless to stop it.

    And contrary to your claims, Apple isn’t afraid of a healthy and fair fight. They just don’t see this as fair. 

  • CharliK

    Read up on IP law, especially Trademark law, and it might make more sense to you why they have to do this. (same for the whole app store thing)

  • djrobsd

    Don’t worry, I’m sure there are some Droid or Windows Mobile phone makers that would love to pick up the constrained supply of parts that Samsung has been providing Apple, so no sweat off Samsung’s back.

  • virt hdd

    Best wishes for Samsung and their nice Android devices!
    Apple will be around for a long while, I hope Samsung Android devices will also!

    Android device security is important - I recommend 2x mobiledevicemanagerDownload at http://www.2x.com/mobiledevice… from the Android Market

  • mai duc chung

    The usual idea is that you would use NFC to set up the link between the two devices and then do an automatic hand over to a different protocol for doing the actual transfer of data – eg Bluetooth,iphone 5

About the author

Alex HeathAlex Heath has been a staff writer at Cult of Mac for three years. He is also a co-host of the CultCast. He has been quoted by places like the BBC, KRON 4 News, and books like "ICONIC: A Photographic Tribute to Apple Innovation." If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Twitter always works too. All DMs excepted.

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