Innovate or stagnate: Why your next phone will suck if Samsung beats Apple August 11, 2012 By Rob Enderle TweetSamsung’s strategy of shameless mimicry will stall the mobile market for years if it succeeds in court.
Cnet: According to a new report from Canaccord Genuity, Apple and Samsung together accounted for 108 percent of the mobile phone manufacturing industry’s second quarter profits.
The core of Apple’s litigation with Samsung stems from a very real problem: Samsung is getting stronger at Apple’s expense.
Weve learned in the course of the patent litigation between Apple and Samsung that the Korean company had been seeking a royalty rate of 2.4% in some cases for licensing its patents.
The Korean company, which is trying to expand in the United States, says Apple infringed some of its key wireless technology patents.
While we could argue most of Sony’s problems originated in Sony, Samsung is clearly making these problems worse.
He notes that the company has been in the market since 1991, long before Apple.
Apple was built on theftBoth Apple and Microsoft essentially built their businesses on technologies stolen from Xerox’s PARC.
Apple took the ideas for the mouse and graphical user interface from Xerox, and Microsoft in turn took them from Apple.
But this was almost a case of stealing someone’s garbage; Xerox’s PARC, like a lot of labs, didn’t have a clue what to do with much of what was developed.
You could also argue that, had Apple licensed these technologies rather than stealing them, it might have received exclusive rights and been able to block Windows in court.
Alternately, offering to license the technologies might have shown Xerox the value, and it might have charged Apple more than the fledgling company could afford.
Or, it may have just licensed the technology to Microsoft earlier, which would have likely caused Apple to fail in the 1980s.
While this hasn’t worked with PCs (that segment is just too diverse now), it pulled it off with TVs, taking the market from Sony.
Singh said that later Samsung phones did so by adopting the same method as the iPhone.
In fact, after learning [redacted material] Samsung’s response was to design its next generation tablet to look even more like an iPad 2.
Alexandra Zucchi is a business journalist based in Hobart, Australia. Alexandra has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Alexandra spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.
