Greg's Bite: Samsung and Android Lose, Big Time
TweetFollow Us on Twitter

Greg's Bite: Samsung and Android Lose, Big Time


By Greg Mills

Steve Jobs anticipated the eventual copy cat problem, should the iPhone and iPad be successful. I really don't think anyone at Apple knew at launch just how successful the new platform would become. Jobs gave fair warning at the launch of the first iPhone that Apple had patented the phone and software lavishly with numerous patents. The competition panned iPhone, but also began to reverse engineer the device.

Google had a head start developing the Android OS since their CEO was on the board of Apple. Steve Jobs had been vilified for not trusting people in various writings about his life. When you consider the crown jewels of technology that have been stolen right from under his nose, a lot can be excused. It is not paranoid to think you can't trust outsiders with your trade secret, but simply good business sense to work in absolute secrecy when you have been burned before by those who call themselves friends.

Steve Jobs and Eric Schmidt were famously observed sitting at a coffee shop table "discussing" something that seemed to have Jobs upset. It turns out Apple had found out that Google had used inside information to jump start what would become Android. Jobs, not lacking a sense of outrage and able to express himself colorfully, declared the Android OS a stolen product and vowed to go to "thermonuclear war" to stop it. He didn't live long enough to see the slow motion effect of those patents and lawsuits, but if he is looking down on the situation from beyond the grave, he must be satisfied that some justice is being wrought.

Having been through the process of obtaining US patents, the time it takes get them issued and the costs to enforce them are breathtaking. When your company is the most valuable company in the world you can hire the best attorneys and do all the right things to enforce your patent rights to the fullest extent of the law.

That last phrase of the proceeding paragraph is the kicker. In electronic technology, the pendency period for obtaining patents is so long, by the time you can get a patent through the process to issue, the underlying technology is often obsolete.

When the iPhone made everyone else's cell phones into dumb phones and Apple's iPhone the smart phone, the competition had a problem figuring out just what was patented, patentable and unpatentable by Apple. Google is always smug in its confidence that it can pretty much do as it wants with government agencies, patents and ethics since they also have an army of lawyers. For example, they used unlicensed Java code and the Apple iOS to fashion Android and won when Oracle sued them. Apple decided to sue Android handset makers rather than Google directly, but the effect on the Android platform is the same.

As Apple put it in closing remarks in the recent trial, what took Apple four years of R&D to create, took Samsung only 90 days to steal. So you end up with a stolen hardware design that runs a stolen software platform. Apple was absolutely right to have gone ballistic.

Since Microsoft R&D was comatose, the iPhone caught them completely flatfooted. Had Microsoft had a spy on the Apple board of directors as Google did, the Windows OS might have come out years sooner. Microsoft also suffered from the delusion that since the iOS and touch screen tablet had eluded them, not to worry, Apple couldn't do it either. Whoops .... the Post PC era is upon us and Microsoft is going to see the Windows PC OS steadily decline as the mobile computing sector Apple invented is revolutionizing the industry. The famous rounding error Steve Balmer noted has become far more significant.

What will the future hold as the legal fight over the iOS, iPhone and iPad technology continues to unfold?

1. The major win Friday, with a Federal Jury declaring Samsung an intentional technology thief will certainly color legal actions between Samsung and Apple around the world.

2. Look for further lawsuits against Samsung as Apple flies additional suits over additional new patents that are even more fundamental to the Android OS.

3. Look for injunctions and trade embargos that will take numerous Samsung phones off the market in the US and elsewhere.

4. Expect Google to dumb down the Android OS to exclude Apple's patented touch screen gestures and button designs.

5. HTC, Motorola and the other Android phone makers are surely shaking in their boots as the law suits filed against all of them now appear far more threatening.

6. I think the smartphone market will be changed due to all the above, as Apple regains the market segment stolen by the Android gang.

7. Expect innovation from Apple such as a finger print sensor built into the home button on coming iPhones and iPad to further enhance security of those devices for business adoption.

8. Apple is on a roll and licensing older iOS technology may be on the table soon. Licensing is far cheaper and more predictable income than court cases.

The judgement against Samsung will cost them roughly $45 per Samsung phone they sold based upon Apple technology. Since Android phones are often sold pretty cheaply compared to iPhone, the margin on Android phones is pretty low already. The jury ruling that Samsung's infringement was intentional carries treble damages, the penalty against Samsung could reach $135 per phone. Damages like that are pretty much clear profit for Apple. Suddenly the Android OS platform is looking pretty grim.

That is Greg's Bite.

 
AAPL
$111.78
Apple Inc.
-0.87
GOOG
$516.35
Google Inc.
+5.25
MSFT
$47.66
Microsoft Corpora
+0.14
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Make your own Tribez Figures (and More)...
Make your own Tribez Figures (and More) with Toyze Posted by Jessica Fisher on December 19th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
So Many Holiday iOS Sales Oh My Goodness...
The holiday season is in full-swing, which means a whole lot of iOS apps and games are going on sale. A bunch already have, in fact. Naturally this means we’re putting together a hand-picked list of the best discounts and sales we can find in order to make your own App Store holiday shopping easier. Things are already kicking off with an... | Read more »
It’s Bird vs. Bird in the New PvP Mode f...
It’s Bird vs. Bird in the New PvP Mode for Angry Birds Epic Posted by Jessica Fisher on December 19th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Telltale Games and Mojang Announce Minec...
Telltale Games and Mojang Announce Minecraft: Story Mode – A Telltale Games Series Posted by Jessica Fisher on December 19th, 2014 [ permalink ] | Read more »
WarChest and Splash Damage Annouce Their...
WarChest and Splash Damage Annouce Their New Game: Tempo Posted by Jessica Fisher on December 19th, 2014 [ permalink ] WarChest Ltd and Splash Damage Ltd are teaming up again to work | Read more »
BulkyPix Celebrates its 6th Anniversary...
BulkyPix Celebrates its 6th Anniversary with a Bunch of Free Games Posted by Jessica Fisher on December 19th, 2014 [ permalink ] BulkyPix has | Read more »
Indulge in Japanese cuisine in Cooking F...
Indulge in Japanese cuisine in Cooking Fever’s new sushi-themed update Posted by Simon Reed on December 19th, 2014 [ permalink ] Lithuanian developer Nordcurrent has yet again updated its restaurant simulat | Read more »
Badland Daydream Level Pack Arrives to C...
Badland Daydream Level Pack Arrives to Celebrate 20 Million Downloads Posted by Ellis Spice on December 19th, 2014 [ permalink ] | Read more »
Far Cry 4, Assassin’s Creed Unity, Desti...
Far Cry 4, Assassin’s Creed Unity, Destiny, and Beyond – AppSpy Takes a Look at AAA Companion Apps Posted by Rob Rich on December 19th, 2014 [ permalink ] These day | Read more »
A Bunch of Halfbrick Games Are Going Fre...
A Bunch of Halfbrick Games Are Going Free for the Holidays Posted by Ellis Spice on December 19th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.