The patent verdict in favour of Apple may be seen as a major victory and sets an unprecedented warning and example for any industry that has design and innovation at its core. The decision by the court Jury to upheld Apple's patents gives a clear signal that creativity trumps plagiarism. While consumers need more choices, choices are supposed to be unique or at least distinguishable from one another. The score is Apple 1 - 0 Samsung.
While the two titans are still battling out in courts with many more patent suits and injunction appeals underway, they are fighting it out in other fronts. According to the team at BGR, recent checks conducted by Canaccord Genuity indicated that Apple's iPhone has been dethroned by Samsung's Galaxy SIII as the number one selling smartphone in United States. This is at least happening on three of the four major US carriers that were checked. Now that the numbers are in, we start to understand the reason why Apple is going so aggressively after Samsung. Apple is just trying to protect its turf and defend its major source of revenue.
However, the report suggested that the number may be too early to draw any firm conclusion to. As has been the case in previous years, the months leading to any Apple's new launch have been blanketed with rumours, gossips, leaks and discussions. Most consumers tend to put their purchase on hold until the new generation product is launched. This is the reason why Apple has been raking millions of device sales in the first week after their launch. Just a recap, 1.4 millions of iPhone 4 was sold in just the first 3 days of availability. 4 millions of iPhone 4s was sold during its launch weekend in 2011. This year, analysts are projecting 10 millions of iPhone 5 will be sold in the first week alone provided that Apple is able to produce enough of iPhone 5 to sell. As the current score stand, it is Apple 1 - 1 Samsung.
There is another interesting battle front that the two giants are competing in. Samsung is undoubtedly the dominant makers of Android devices. With the rapid widespread adoption of smartphone in the market, businesses are pouring billions of resources to capture the fast-growing traffic that is coming from the mobile phones. In the past one to two years alone, we have seen significant percentage of Internet purchases that are made through mobile devices. This means that the platform that is going to garner more users will be more supported by app developers and businesses alike. With more supports from developers, a software ecosystem will be healthier.
In recent report released by Chitika, the dominant share of the Internet traffic generated from iOS-based devices is staggering. While Android commands a larger share of the pie when it comes to smartphone, Apple owns 65% of mobile web traffic, at least in the US and Canada. So, what happened to all the Android users? Do they not surf the web as much as iOS users? This is an interesting phenomena to watch out for. For now, the winner clearly goes to Apple and the score is Apple 2 - 1 Samsung.
Stay tuned for more update from the battlefield.
Wednesday, 5 September 2012
The Aftermath of Samsung Verdict: Did Samsung really lose?
Soon after news erupted that 9-persons jury in SF court presiding over the patent fight between Apple and Samsung, bloggers, journalists, writers and analysts immediately spun their own version of what appeared to be thoughtful reactions and analysis. After this trial, the question plaguing everyone's mind is what will come next? It depends on which camp you listen to.
One school of thought suggests that this win for Apple is just the tip of the iceberg. Apple will not stop here and the fresh confirmation that their design patents are valid gives them more lethal arsenal against the growing clout of its Android nemesis. This win will send signals that will ripple through industries not limited to the smartphone market alone. The message is clear and powerful. This will send out a warning to Apple's rivals and other smartphone manufacturers. But some analysts believe that given the piles of law suits that Apple has filed, going after each of the smaller phone manufacturers will not be their highest priority at the moment. Instead, many believe that Tim Cook and his legal team have set their eyes on Google. This is not surprising at all. In Steve Jobs' biography, Walter Isaacson revealed how Steve Jobs described Google's Android as 'stolen product' and he would fight a 'thermonuclear war with Google' in order 'to right what is wrong'. The Google-Android OS relationship is a bit complicated. It is true that Google makes Android that is in turn powering millions of devices that have outsold even Apple's best selling iPhone. However, unlike Samsung, Google does not earn much from the OS licensing. Instead, Google gains most of its revenue from the ads revenue it is generating as Google search is the default search engine in all the Android devices.
To give this camp its due credit, Apple had indeed followed up on its win to bar the sales of all Samsung devices that are found to be in patent violation. Likewise, Samsung's lawyers are quick to capitalize on the small victory it has over the Galaxy tablet which was found to be in no violation to Apple's iPad. From the look of it, Google may choose to remain as quiet spectators on the sideline while the two titans are fighting it out.
There is another school of thought which questions the impact of Apple's win to consumer choices. Some believe that this could be a wake up call to all the smartphone makers. All these phone makers will be forced to take a step back and slow down the release of their new devices. They need to be more cautious and careful in deciding if their devices have the same 'look-and-feel' as iPhone. Some might be compelled to change the appearance altogether while some might just do away with software tweak that would give their device distinguishable 'look-and-feel' from the iPhone. Nonetheless, this could mean well for the consumers as these manufacturers are required to dedicate more emphasis on their designs and not just taking the short cuts. Whether it is good or bad for the consumers, time will tell.
$1B is a huge amount considering that Samsung Electronics only have $14B in their cash reserve. Everyone believes that Samsung will proceed with appeals and fight a long battle with Apple. No one expects them to surrender any time soon. (See how Samsung is going to pay the $1B fine)
As things stand today, Samsung is wounded but by no means dead yet. Just look at the reports coming out in the past few days. The verdict by no doubt results in consumer dumping and shying away from the Samsung devices that are found to be in patent breach, such as the Galaxy S2. However, it could still mean a good fortune to Samsung because huge chunks of these people are going for Samsung's latest Galaxy S3 model instead. This could very well be a booster to its Galaxy S3 model.
So, did Samsung really lose? It is too early to tell.
One school of thought suggests that this win for Apple is just the tip of the iceberg. Apple will not stop here and the fresh confirmation that their design patents are valid gives them more lethal arsenal against the growing clout of its Android nemesis. This win will send signals that will ripple through industries not limited to the smartphone market alone. The message is clear and powerful. This will send out a warning to Apple's rivals and other smartphone manufacturers. But some analysts believe that given the piles of law suits that Apple has filed, going after each of the smaller phone manufacturers will not be their highest priority at the moment. Instead, many believe that Tim Cook and his legal team have set their eyes on Google. This is not surprising at all. In Steve Jobs' biography, Walter Isaacson revealed how Steve Jobs described Google's Android as 'stolen product' and he would fight a 'thermonuclear war with Google' in order 'to right what is wrong'. The Google-Android OS relationship is a bit complicated. It is true that Google makes Android that is in turn powering millions of devices that have outsold even Apple's best selling iPhone. However, unlike Samsung, Google does not earn much from the OS licensing. Instead, Google gains most of its revenue from the ads revenue it is generating as Google search is the default search engine in all the Android devices.
To give this camp its due credit, Apple had indeed followed up on its win to bar the sales of all Samsung devices that are found to be in patent violation. Likewise, Samsung's lawyers are quick to capitalize on the small victory it has over the Galaxy tablet which was found to be in no violation to Apple's iPad. From the look of it, Google may choose to remain as quiet spectators on the sideline while the two titans are fighting it out.
There is another school of thought which questions the impact of Apple's win to consumer choices. Some believe that this could be a wake up call to all the smartphone makers. All these phone makers will be forced to take a step back and slow down the release of their new devices. They need to be more cautious and careful in deciding if their devices have the same 'look-and-feel' as iPhone. Some might be compelled to change the appearance altogether while some might just do away with software tweak that would give their device distinguishable 'look-and-feel' from the iPhone. Nonetheless, this could mean well for the consumers as these manufacturers are required to dedicate more emphasis on their designs and not just taking the short cuts. Whether it is good or bad for the consumers, time will tell.
$1B is a huge amount considering that Samsung Electronics only have $14B in their cash reserve. Everyone believes that Samsung will proceed with appeals and fight a long battle with Apple. No one expects them to surrender any time soon. (See how Samsung is going to pay the $1B fine)
As things stand today, Samsung is wounded but by no means dead yet. Just look at the reports coming out in the past few days. The verdict by no doubt results in consumer dumping and shying away from the Samsung devices that are found to be in patent breach, such as the Galaxy S2. However, it could still mean a good fortune to Samsung because huge chunks of these people are going for Samsung's latest Galaxy S3 model instead. This could very well be a booster to its Galaxy S3 model.
So, did Samsung really lose? It is too early to tell.
Monday, 3 September 2012
The World's Most Secretive and Most Opened Companies are in Patent Mending Relationship
As widely expected, the SF court verdict that ruled in Apple's favour is going to have long lasting and systemic impact in one of today's fastest growing and rapidly evolving smartphone industry. There are many ways in looking at this issue and everyone has a right to express their own expressions.
Today, a fresh juice of news just out said that Reuters reported that Apple and Google have opened a high-level communication channel to thrash out the patent issues that are wrangling the companies. Reports suggested that Tim Cook and Larry Page held their first talk weeks prior to the Samsung verdict. Apple might have claimed historical and psychologically important victory against Samsung, but to repeat its success against Google is an entirely different story.
Unlike Samsung, Google is a more powerful enemy to annihilate. One of the biggest and immediate challenge for Apple is in proving damages caused by Google-backed Android OS. Google earns peanuts amount of money in licensing its Android OS and making it available to all the smartphone makers such as HTC, LG etc. This is compared to Samsung Electronics that made billions of revenue out of their smartphone sales and competing directly against iPhone sales. No doubt Google made tonnes of money from its search ads originating from the millions of Android mobile devices. But can Apple claim any damage on this considering that the default iPhone search engine itself is Google? Can they convince the judges and jurors of any direct potential revenue loss? It may be possible, but it is hard.
In engaging hardware manufacturers to manufacture Android-powered phones, Google had made a genius move. It is true that Google is not a hardware manufacturers and making hardware is not in-line with their company strategy. But with billions of dollars in its cash coffers, nothing stops them from following the Apple's path of being both software and hardware company. Apple has proven that the business model is workable and it is sound. Google has chosen a different path for a strategic reason.
It does not take a genius to highlight the fact that Google makes bulk of its revenue from search ads. Soon after the massive adoption of iPhone, it does not take too long for Google to realize the atomic potential of mobile phone. With increasing mobility and improving infrastructure in many parts of the world, it would only be a matter of time before mobile computing eclipses desktop computing. Today, growth in smartphone has fuelled prolific upsurge in Internet traffic coming from mobile devices. As long as people are using the Internet, search definitely forms significant part of the equation. Search is the cake that Google is eyeing.
Google moved ahead to embrace those hardware manufacturers unhappy and who were usurped by Apple's rise. Nokia, back then the ruler of the phone world, did not buy in to Google's plan. There is no reason for Nokia to embrace Android as it had just purchased Symbian OS and its market leader position was no where under threat yet at the time. Samsung, Asia's fast rising corporation with big ambitions, decided to go along with Google. Many other smaller players did join in the fray too. To Google, these vendors automatically became their proxy and defence wall. A simple logic but no one seemed to figure it out at the time. This could simply be due to ignorance on the part of these vendors or they were chasing after sales in what appeared to be a fast growing market.
Apple's unhappiness over Android is evident and reported in many occasions. The biggest revelation and confirmation came from Steve Jobs' biography where Isaacson revealed how Steve Jobs was quoted as describing Android as 'stolen product'. In coming after Android, Apple made a strategic decision to go after Android's strongest proxy and that is Samsung.
The $1B slap on Samsung is unprecedented. With Samsung now bruised and battered, many are suggesting that Apple is setting its sight on Google next. However, Google might prove to be a harder opponent to take down. Probably realizing that another patent fight would do both side no good, Apple and Google decided to engage in highly secretive talk. So much so for their motto of don't be evil. Now that Samsung and all other smaller fry are scrambling in the wake of Apple's win, will Google come to their rescue? Will the secret talk brings peace to the tech world that we once enjoyed?
Today, a fresh juice of news just out said that Reuters reported that Apple and Google have opened a high-level communication channel to thrash out the patent issues that are wrangling the companies. Reports suggested that Tim Cook and Larry Page held their first talk weeks prior to the Samsung verdict. Apple might have claimed historical and psychologically important victory against Samsung, but to repeat its success against Google is an entirely different story.
Unlike Samsung, Google is a more powerful enemy to annihilate. One of the biggest and immediate challenge for Apple is in proving damages caused by Google-backed Android OS. Google earns peanuts amount of money in licensing its Android OS and making it available to all the smartphone makers such as HTC, LG etc. This is compared to Samsung Electronics that made billions of revenue out of their smartphone sales and competing directly against iPhone sales. No doubt Google made tonnes of money from its search ads originating from the millions of Android mobile devices. But can Apple claim any damage on this considering that the default iPhone search engine itself is Google? Can they convince the judges and jurors of any direct potential revenue loss? It may be possible, but it is hard.
In engaging hardware manufacturers to manufacture Android-powered phones, Google had made a genius move. It is true that Google is not a hardware manufacturers and making hardware is not in-line with their company strategy. But with billions of dollars in its cash coffers, nothing stops them from following the Apple's path of being both software and hardware company. Apple has proven that the business model is workable and it is sound. Google has chosen a different path for a strategic reason.
It does not take a genius to highlight the fact that Google makes bulk of its revenue from search ads. Soon after the massive adoption of iPhone, it does not take too long for Google to realize the atomic potential of mobile phone. With increasing mobility and improving infrastructure in many parts of the world, it would only be a matter of time before mobile computing eclipses desktop computing. Today, growth in smartphone has fuelled prolific upsurge in Internet traffic coming from mobile devices. As long as people are using the Internet, search definitely forms significant part of the equation. Search is the cake that Google is eyeing.
Google moved ahead to embrace those hardware manufacturers unhappy and who were usurped by Apple's rise. Nokia, back then the ruler of the phone world, did not buy in to Google's plan. There is no reason for Nokia to embrace Android as it had just purchased Symbian OS and its market leader position was no where under threat yet at the time. Samsung, Asia's fast rising corporation with big ambitions, decided to go along with Google. Many other smaller players did join in the fray too. To Google, these vendors automatically became their proxy and defence wall. A simple logic but no one seemed to figure it out at the time. This could simply be due to ignorance on the part of these vendors or they were chasing after sales in what appeared to be a fast growing market.
Apple's unhappiness over Android is evident and reported in many occasions. The biggest revelation and confirmation came from Steve Jobs' biography where Isaacson revealed how Steve Jobs was quoted as describing Android as 'stolen product'. In coming after Android, Apple made a strategic decision to go after Android's strongest proxy and that is Samsung.
The $1B slap on Samsung is unprecedented. With Samsung now bruised and battered, many are suggesting that Apple is setting its sight on Google next. However, Google might prove to be a harder opponent to take down. Probably realizing that another patent fight would do both side no good, Apple and Google decided to engage in highly secretive talk. So much so for their motto of don't be evil. Now that Samsung and all other smaller fry are scrambling in the wake of Apple's win, will Google come to their rescue? Will the secret talk brings peace to the tech world that we once enjoyed?
With $1B morale victory, Apple is now going after Galaxy III
As predicted by many analysts, the $1B slap that was recently imposed on Samsung was only the tip of the iceberg. The patent tussle between the two giants of today's tech world is widely expected to continue for many years to come. The eventual winner is not clear from just a single win as there are hundreds of other cases where Apple and Samsung are suing each other for patent breach.
After the loss, Samsung was quick to declare its intent to let the bad blood between the two become even bloodier. They are reported to have been loading its arsenal of ammunition and getting ready for the next big battle. The next generation iPhone (expected by many as iPhone 5), is wild with rumours and speculations. One of the hottest rumours surrounding the mega hype is the LTE feature that will come equipped with the new generation iPhone. Many pundits are convinced that any new iPhone without LTE will put Apple behind its competitors and could potentially cause them to lose market share. This is given that most mobile carriers around the world are already rolling out or are planning to roll out LTE networks to boost the growth in data hunger due to the quicker than expected adoption of smartphone in many parts of the world.
In retaliation to Samsung's threat, Apple has expanded its lawsuit to seek ban on sales of Samsung's devices that has now included the not-so-long-ago released Samsung Galaxy S3. Initially thought of as one of Samsung's leading device and considered as safe from Apple's reach, those who have recently purchased their new Galaxy S3 have more reasons to worry. Now that the lawsuit is filed, it may cause many of those intending to make their S3 purchase on hold. It would be devastating for Samsung if the injunction decision in Apple's favour comes. This would give Apple the upper hand when they launch their new iPhone in about a week time.
With the legal dispute expected to continue and even spread further, is it going to be good for us as consumers? Do we want to see more of such mega suits? Will this result in more unique choices to consumers or will it lead to even lesser options when it comes to choosing our favourite mobile phones? No one can tell for sure how this battle is going to reshape the market landscape. Stay tuned for more updates.
After the loss, Samsung was quick to declare its intent to let the bad blood between the two become even bloodier. They are reported to have been loading its arsenal of ammunition and getting ready for the next big battle. The next generation iPhone (expected by many as iPhone 5), is wild with rumours and speculations. One of the hottest rumours surrounding the mega hype is the LTE feature that will come equipped with the new generation iPhone. Many pundits are convinced that any new iPhone without LTE will put Apple behind its competitors and could potentially cause them to lose market share. This is given that most mobile carriers around the world are already rolling out or are planning to roll out LTE networks to boost the growth in data hunger due to the quicker than expected adoption of smartphone in many parts of the world.
In retaliation to Samsung's threat, Apple has expanded its lawsuit to seek ban on sales of Samsung's devices that has now included the not-so-long-ago released Samsung Galaxy S3. Initially thought of as one of Samsung's leading device and considered as safe from Apple's reach, those who have recently purchased their new Galaxy S3 have more reasons to worry. Now that the lawsuit is filed, it may cause many of those intending to make their S3 purchase on hold. It would be devastating for Samsung if the injunction decision in Apple's favour comes. This would give Apple the upper hand when they launch their new iPhone in about a week time.
With the legal dispute expected to continue and even spread further, is it going to be good for us as consumers? Do we want to see more of such mega suits? Will this result in more unique choices to consumers or will it lead to even lesser options when it comes to choosing our favourite mobile phones? No one can tell for sure how this battle is going to reshape the market landscape. Stay tuned for more updates.
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