An intensifying legal battle between Samsung Electronics Co and Apple Inc is expected to crimp growth at one of the fastest--growing businesses of the South Korean company, while threatening to worsen business ties with the firm’s largest customer.
The two technology firms have been locked in an acrimonious global battle over smartphone and tablet patents since April and Apple has successfully blocked Samsung from selling its latest tablets in Germany and some smartphone models in the Netherlands.
The iPhone and iPad maker has also forced its rival to indefinitely delay launching its new Galaxy tablets in Australia, where a court will give its ruling this week.
Lawyers from Apple and Samsung argued their cases at a hearing in Australia yesterday. Apple has sought an injunction in Australia to ban sales of Samsung’s Galaxy 10.1 tablet, asserting three patents have been infringed.
Another hearing is set to resume on Thursday.
Another loss could dent Samsung’s ambitious attempt to close the gap with Apple in the global tablet market. The Galaxy gadgets, powered by Google’s Android operating system, are seen as the biggest challengers to Apple’s mobile devices.
“Samsung’s tablet business will be most affected and its chip business will also take a hit as Apple moves to diversify away from Samsung to the likes of Toshiba,” said Nho Geun-chang, an analyst at HMC Investment Securities. “But taking passive steps for fear of losing its biggest customer will slow down strong growth momentum at its telecoms business, which Samsung doesn’t want to see as the business is set to become the biggest earnings generator this year and make up for weakening chip profits. It’ll be a costly battle for Samsung.”
The South Korean conglomerate supplied Apple with about US$5.7 billion in components last year, some 4 percent of Samsung’s total sales.
Apple’s portion grew to 5.8 percent of Samsung’s sales in the first quarter, driven by booming iPad and iPhone sales, for which Samsung supplies chips, along with Japan’s Toshiba.
Analysts said what might become a longer-term challenge for Samsung is losing chip orders from Apple.
“For Samsung, [the] biggest concern is reduced order[s] from Apple. Without Apple’s big backing, it would be difficult for Samsung to boost its chip market share sharply,” Nho said. “Apple is leveraging the fact that it’s got alternative suppliers. They may offer inferior or more expensive components, but it’s something consumers barely notice and something Apple can successfully use to pressure Samsung.”
Samsung and Apple are suing each other in nine countries over 20 cases. Apple fired the first salvo in April by suing Samsung in a California court, saying the Galaxy lineup devices infringed on its mobile technology patents and design.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Prices of gasoline and diesel products at domestic gas stations are to fall NT$0.2 and NT$0.1 per liter respectively this week, even though international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices continued rising last week, as the US Energy Information Administration reported a larger-than-expected drop in US commercial crude oil inventories, CPC said in a statement. Based on the company’s floating oil price formula, the cost of crude oil rose 2.38 percent last week from a week earlier, it said. News that US President Donald Trump plans a “secondary
RSS