If iPhone 5 Release Date Postponed, Is Samsung to Blame?
Two device-makers trading blows
They were like Floyd Mayweather and Manny Pacquiao, engaging in a war of words rather than actually hurting each other in the boxing ring. But now, they're exchanging blows like there's no tomorrow.
Before, Apple Inc. and Samsung Electronics were like foster kids who clung to each other like long-lost soul mates. The South Korean electronics giant produced chips and display screens for Apple at better rates than it does for its own mobile division. While Apple sold its iPhone in the United States and other mature economies, Samsung sold cheap phones in Korea and other emerging markets. Even the Samsung Galaxy S2 (which has sold a record 10 million units so far) was only released in North America when the iPhone 4 was due for replacement.
But the stepbrothers have now become like Israel and Palestine. Their issues appear petty: (i) James was furious after his brother, Pete, started selling lemonade using the jar and ingredients James invented; but (ii) James has been selling cookies using Pete's chocolate chip and nuts-styled recipe.
On Oct. 4, Apple will host the media at its Cupertino, Calif. headquarters to unveil the long awaited iPhone 5, and have a release date just days (maybe weeks) later. It will be a coronation of sorts for new CEO Tim Cook, who will face the public for the first time in Apple's post-Steve Jobs era. But Apple's prodigal brother will be there to spoil the party.
Samsung, according to reports, will pursue a complete sales ban on the fifth generation iPhone using various wireless patents of Samsung. "For as long as Apple does not drop mobile telecommunications functions, it would be impossible for it to sell its i-branded products without using our patents", The Korea Times quoted a Samsung insider as saying.
But the timing could be ill-advised given that Apple fanboys -- and 89% of current iPhone users, according to a UBS survey -- are dying to get their hands on a new iPhone after four months of waiting. But Samsung claims that Apple started it. Remember at the IFA 2011, the world's largest consumer electronics show, Samsung was forced to pull the Galaxy Tab 10.1 and Galaxy Tab 7.7. at the exhibit because Apple obtained a temporary ban of those products.
No, Samsung started it, the U.S. company claims. Indeed, Apple is arguing that Samsung started it by "slavishly" mimicking the design and functionality of the iPhone and iPad. "It must have been as plain as the Opera House to Samsung that the Apple patents were right in front of its eyes and they were wide open," Apple attorney Steven Burley recently told a court in Australia, according to The Wall Street Journal. "They ought to clear the way in advance rather than try to crash through."
At a time when Samsung has emerged as the second-largest smartphone maker after Nokia, and legitimate rival to the iPad in the tablet market, Apple is trying to push Samsung away in a courtroom battle. Apple filed dozens of intellectual property lawsuits against Samsung in three continents.
Aside from Germany, Apple won an injunction against Samsung products in Australia and the Netherlands. According to The Sydney Morning Herald, Samsung's lawyer, David Catterns, told the Australian judge that a ban hurts Samsung as by "the time the patent dispute is resolved at trial, Apple would be selling the iPad 9."
As Apple has been its number one customer, Samsung has been forgiving, but Apple's antics have forced Samsung to fight back. Samsung is not a company that lives on imitation -- it has proud history of innovation, infused more money for research and development than Apple and has thousands of smartphone patents compared to just hundreds for Apple.
Samsung has counter-sued in Australia, the Netherlands, and other countries, alleging that Apple has breached wireless patents. Now Samsung is trying to get a ban of Apple's iPhone and iPad in the European Union. Samsung is asking the Dutch court to compel Apple to pay royalties for 3G transmission technology (four Samsung patents) used in Apple devices. Apple didn't deny Samsung's claims to the technology, only saying that the fee -- which could reach $100 million just for this year -- is excessive (hearing at The Hague is scheduled for Oct. 14).
Apple has said an injunction on the sale of its devices are "premature," given that Samsung is obliged to provide third parties with a license under reasonable, non-discriminatory terms. But, as Samsung notes, Apple never applied for licenses when it started releasing the iPhone in 2007.
Apple got a ban of Samsung's devices, didn't it? When Apple obtained an injunction of the Galaxy Tab 10.1 or the Galaxy S2, Samsung continued doing business as it had a wide portfolio of mobile devices.
If Samsung gives Apple a dose of its own medicine by banning the iPads and the iPhones, the Apple Store won't have anything to sell other than the iPods and pricey $2,000 MacBooks or Macs.
The fight between Manny Pacquiao and Floyd Mayweather won't likely happen. But a more exciting main event has already started. After suffering a beating in the early rounds, Samsung might win by knock-out if it gets a ban of the iPhone 5.