Apple samsung case

RULING IN APPLE – SAMSUNG CASE

International Marketing Case Study

RULING IN APPLE – SAMSUNG CASE

It was sweeping victory for Apple Incorporation when a US Jury found --- the Korean company of Samsung products copied critical features of --- popular iPhone and Ipad on 25/08/12. The nine member Jury headed by Judge Lucy Koh awarded Apple $1.051 billion as damages after carefully studying mountain of evidence during the trial period in the federal court in San Jose, California.

The smart phone market which is estimated at $219.1 billion is dominated by Samsung with a market share of 21.6 per cent. Apple Incorporation with its hugely popular innovative brands iPhone and ipad has only 6.9market share thanks to Samsungs aggressive marketing tactics which includes alleged copying ….

(Apple – Samsung Case)

DESIGN IMPERATIVE

Colleen Chien , a law professor at Santa Clara University said “ The more significant issue is whether or not Apple is entitled to an injuction, if it is, expect to see some new phone designs emerge, quickly – not only by Samsung but all other handset makers selling designs similar to Apples”.


“Samsung will ask the judge to overturn the verdict and, if she doesn’t, will appeal the case” Mira Jang a spokes women for Samsung.

Google Loses Kevin Rivette, an Intellectual Property expert

says “The verdict also hands a defeat to Google, which may need to scale back or change features of Android. Google is in a position that it didn’t want to be in”.


VIEWS OF APPLE AND SAMSUNG

“The lawsuits between Apple and Samsung were about much more than patents or money. They were about values. At Apple, we value originality and innovation and pour our lives into making the best products on earth” Apple Inc.

“Today’s verdict should not be viewed as a win for Apple, but as a loss for the American consumer. It will lead to fewer choices, less innovation, and potentially higher prices. Consumers have the right to choices, and they know what they are buying when they purchase Samsung products” Samsung.


Jury’s conclusion means fewer smart-phone options for consumers. - Consumers

Some of these device makers might end up saying, “ we love Android, but we really don’t want to fight with Apple anymore” Other competitors

Apple lawyers plan to formally demand Samsung pull its most popular cellphones and computer tablets from the market. They also can ask the judge to triple the damages from $1.05 billion to $3 billion.


MICROSOFT AND RESEARCH IN MOTION

A consultant said “Other companies may benefit from the decision, including Microsoft, which has been lagging in the mobile sector, and Blackberry maker Research in Motion, which has been hit hardest by the rise of Android devices”.

In recent months, Android devices have grabbed more than 50 per cent of the US smartphones market to around 30 percent for Apple, which RIM’s share have slid to around 12 percent.

Apple and Samsung have filed 50 lawsuits in nine countries; San Jose case the most prominent.

Samsung found to have infringed upon 6 of 7 Apple patents.


“SAMSUNG DIDN’T COPY IPHONE: S KOREA COURT”

Judges in Seoul said Samsung Electronics Co didn’t copy the look and feel of the iPhone and ruled Apple infringed on Samsung wireless technology.


FEATURES COPIED

Scrolling (bounceback and rubber band effect)

Pinch-to-zoom & tap to zoom Centering capability Distinguishing between single- and

multi touch One –fingered scrolling Styles Copied Apple iPhone’s front Back and home screen


APPLE – SAMSUNG SUPPLY RELATIONSHIP

The companies are rivals, but also have a $5 billion-plus supply relationship. Apple is Samsung’s biggest customer for micro-processors and other parts central to Apple’s devices.

Samsung Investment Plan Samsung Electronics has a cash pile of $21

billion. Samsung – the largest maker of computer

memory chips, flat –screen panels and TVs – plan to spend $22 billion this year in capital expenditure to boost manufacturing capacity.


The more important effect of the decision could be the impact it has on Android, the Google operating system used by Samsung and broad array of the companies in their devices. For every iPhone sold worldwide, more than three Android smart-phones sold, reflecting the rise of Google’s software.

Apple is expected to ask the judge in the Samsung case for an injunction preventing Samsung from shipping products that infringe on Apple’s patents.


1. If you are the President International Marketing -Samsung, what will be your course of action in the light of the recent verdict on the following important key issues?

Protection of your current market share.

Safeguarding the brand from any further legal entanglement.


2. If you are the President International Marketing - Apple, what will be your course of action in the light of the recent verdict on the following important key issues?

Increasing the current market share. Protection of brand/market share from

any further infringement.


3. Critically evaluate the recent judgment and give your views with respects to the potential advantages or disadvantages for the consumers in the near future.


4. You are a senior independent consultant of smart phone sector. Give your opinion on the recent developments of Samsung – Apple case judgments as how smart phone sector is going to reshape in the years to come.


5. Your are a marketing consultant for these companies –

a) Google b) HTC c) Microsoft d) Research In Motion. What will be your course of action to

protect/ increase the market share for each company?


Documents

Apple samsung case