
In a landmark outcome, a US court in San Jose, California, has handed Samsung a serious blow in its campaign to dominate the smartphone and tablet marketplace, via a whopping $1B in damages to be paid to Apple Inc.
These damages are to be paid to Apple for what was ratified as infringement of various Apple design patents, and/or, if you prefer, for outright copying of various design aspects of both the iPhone and iPad devices. In technical speak, Samsung was found guilty of infringing on design patents, utility patents and trade dress for a total of eight devices (out of 28 involved in the case), and Apple wants them banned from sale in the US.
The cash involved is far from the biggest issue for these two electronics giants as each has stockpiles of the stuff, and for Apple in particular, one billion is nothing that will change their world. However, there are serious implications for Samsung moving forward, and unquestionably this will also translate into issues for you and I, the consumer, looking ahead.
If, de facto, Samsung are ultimately found guilty of directly copying Apple designs (naturally, they are appealing this recent verdict, and some analysts expect certain things to be overturned) then this opens up the whole issue of Apple having insisted that certain Samsung products be removed from the American market. This move has been unsuccessful in other parts of the world, but it could be a very different thing in North America.
Personally speaking, I don't think that Apple truly expects the various devices to be banned outright from America, and neither does Samsung. The compromise here will almost certainly be that Samsung will be forced to pay Apple a royalty on each and every device sold, and that will be way more acceptable to Samsung instead of having no sales at all in this uber-competitive market.
Why? Well, it comes back to the consumer issue that I raised above: if Samsung are forced to hand over $1B in cash and, say, a $10 royalty to Apple on every Samsung device sold, then who do you think is going to help pay for it? Yes, you. And I. The consumer!
I was almost suspicious of how cheaply I was able to switch to Galaxy SII when my iPhone reached the end of the contract, and in fact, I was given cash to take the phone! This, even though it was the phone that all the geeks were saying was the #1 smartphone, no, superphone, on the market at that time?! Based on my own immediate experience with it, I knew that it was as good as they said and I never looked back.
I think Samsung saw the trouble coming, and decided to flood the market in advance of any legal verdict against them. It just didn't make sense: take an iPhone 4GS at a price point of the order of a few hundred dollars, or grab a chic Galaxy SII at no charge and we will give you $125 in cash on top as a bonus?! While the merits of the two phones could be discussed in great detail (and are on various tech insider sites), I shall summarize it by saying that given such similarities as they do have in common, a free SII plus over a hundred in cash is a hands-down winner, every time!
The worries do not stop there. Apple is claiming ownership of certain "design features" such as for example, "rectangular phone design". Show me a smartphone today that is circular! It is probably no coincidence that the new Galaxy SIII has rounded edges, which may well be an attempt to exempt it from the scrutiny that its predecessor, the SII, may well face. Are we going to get into an argument now over whether a rectangle with rounded edges is or is not a true rectangle?! I much prefer the hard clean lines of my SII, so, and for those like me who have also procured their Samsung device at a great price while the going was good? Rejoice!
There are many other companies that are going to be under the spotlight, including all Android devices, and various companies cannot be happy with recent developments. It is going to mean headaches for them all, and as expected, a less competitive market fro the consumer in terms of less bargains and higher prices.
One should not be that shocked; Apple loves to corner the market and then charge an arm and a leg for it. On this blog we have covered their alleged attempt to corrupt the self-publishing marketplace and jack prices up artificially for everyone, even allegedly coercing other major publishers and even Amazon to follow their dictates. It is estimated that the public was bilked out of as much as an extra $100M in this scenario.
Yes, Apple are true innovators who have developed some of the most functional, and functionally chic electronics out there today. Yes, as a reward for that, they have become staggeringly wealthy. But yes, time and again, they have come across as grumpy and greedy, and that leaves a sour taste in my mouth.
It is highly ironic also that it is Samsung who supply certain major components of the iPhone and iPad such as the mobile processors that are at their core, as well as very cool display screens and memory chips. What would Apple do if Samsung in return refused to act as a components vendor for any future Apple device? Again, this hurts you and I more than anyone at either of these two companies, in terms of increased prices once more.
As much as Samsung did try to take a big bite out of the Apple, an Apple today does keep a Samsung at bay, even if the Apple might be biting the hand that feeds it at the same time! ;) - Kevin Mc