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When the Samsung Galaxy III came out, there was an immediate demand for the product. The glitches from the previous model have been said to have been fixed, so many people were anticipating it's release. However upon inspection the Apple company noticed that many of the features and additional functions were very similar to the iPhone 5. Eventually the Galaxy S III caused Samsung's cellphone sales exceed those of Apple's. (32.6 % of the market sales of phones, compared to 16.9 %). Obviously after seeing such a difference in sales, knowing Apple, they will come up with something to increase their revenue, and that's what they did! Apple Inc. filed a lawsuit against Samsung Electronics Co. for using ideas or features from 6 of their 7 patents for mobile devices. One of which was the home button, everyone knows that the iPhone is not a complicated phone to use because of it's versatile home button. In fact it is actually the only other button besides the power and volume, and that makes it a very organized phone. It was a feature that everyone liked because it was so simple. So of course when the Samsung S III was said to have that feature many people wanted to get that phone. It had all the features of the Android but included the one main thing that made the iPhone .. well the iPhone However all good things come with a price and the Samsung Electronics Company had to pay it. Near the end of August a nine-member jury decided that all Apple's arguments were valid and that The Samsung Company did in fact copy their patents! Apple sought $2.5-billion US to $2.75-billion US for damages and even pushed for a ban on Samsung smart phones, however the ban was not permitted as it was seen as too extreme and the fine was reduced. Imagine if that had went through, everyone who had bought a phone from Samsung would have to buy a new one! (Talk about a waste of money.) Luckily that didn't go through or many people would have been liable. However, the conflict didn't end here! After this lawsuit there was a rumour going around saying that Samsung paid this fee with NICKELS! This is still a speculation but the story says that the company sent over 30 trucks filled with coins totally over 1 billion dollars to pay Apple. Hundreds of Apple employees were said to spend hours on end counting the coins because well, there's no law saying you can't pay with coins. Even though this is simple a speculation, it is just fun to know that Apple can lose a fight even when they're always on top. I guess in this case, "they won the battle, but lost the war" Samsung got the last laugh.

So what does this have to do with international business? Well it's simple. Both companies in this were major international distributors of phones. It wasn't just people in the United States that could buy these phones, different people around the world could buy these phones. With the rivalry between two different companies from different countries, it puts many consumers in a good place. Both companies will strive to be the best, and as a result, they will constantly come up with better products. Without international business, companies like this would never really try to beat what they already have because there are no foreign competitors. But now, we are constantly getting new faster and better products. Do you ever wonder why a new iPhone is constantly being released? What about a new Android? I always wondered why new models were constantly being released and now I know. The competition international business creates causes companies to constantly strive to make a better product than everyone else, and "beat the best".
To read an article on this you can click
here but the story is basically summarized by now.
Thanks for the clarification/update on the details of this lawsuit. I was well aware of the lawsuit, but was not quite sure of the main patent infringements.
ReplyDeleteThat rumor is hilarious regarding the nickel payment! It is true? (My bet it is just a media/pop culture rumor) but if anyone can find confirmation from a legit source that would just make my day! Haha...Good for Samsung! That being said, in business, when you have something unique that's a CASH COW, you should do all in your power to protect your investment! That includes obtaining patents and protecting them. Good on Apple (thought both these companies "print" money so I wouldn't feel to bad for either)
I think that Apple did a good thing when they filed a lawsuit against Samsung. Samsung used the ideas and features of Apple patents to increase the demand for its products. I think that is an unfair way to increase revenue. The lawsuit also helped Apple's revenue increase, which is also a good thing. I would prefer Apple over Samsung.
ReplyDeleteI understand the lawsuit but its restricting samsung of there potential to create a new and better phone. Moreover, the fact that their holding a law suit, it shows that samsung is one of apples main competitor. And they fear that samsung will be more popular and in demand then apple
ReplyDeleteThe payment in coins was hilarious, I would never expect a big company like Samsung to send coins to pay off a lawsuit. It is true that stealing ideas is bad but there may be coincedence that are depicted with the button. Just because it is one of the iPhone's features does not mean they own it, the only way they would fight for that feature is because they are in trouble and need money. Apple is making a big deal for one feature, seriously they they need to relax and start making better functions for the iPhone as opposed to just changing the video and saying it's a lot better. There are many ways they can make their better and more loved, this can be accomplished if they just start focusing on their hardwar and apps and not looking at other people's phones.
ReplyDeleteGreat post! Well I guess personally, I'm an Apple guy. They focus on design and innovation rather than jam packing their phones with stuff. Though regarding the comment above me, I think that Apple's lawsuit has some grounding. Many hours of work and sleepless nights contributed to creating the features that make their products unique. By talking those features and putting them in their own phones, Samsung has "stolen" from Apple. Though I guess the fact that the features were taken in the first place credits the iPhone as being a great product.
ReplyDeleteThis is a great and accurate posting on the war between the iPhone 5 and the Samsung Galaxy S3. While I am an Apple fan and user and will always be one, the Galaxy S3 is definitely the better of the two, Its more innovative and appealing that the 5. However, I think and hope that Apple will come up with an innovative and better smartphone in the near future. if not, than you can expect Samsung to take the top spot in the cellular mobile device business in the long-term.
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