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Samsung’s crushing loss in patent trial won’t impact parts deal with Apple

Samsung (005930) was hit extremely hard last week when a jury determined that 21 of the company’s various Android devices infringed on various combinations of six Apple (AAPL) patents. Some industry watchers suggested justice had been served, but Samsung obviously disagrees and plans to appeal the ruling. While Apple clearly isn’t on the South Korean electronics giant’s list for holiday gift baskets this year, Reuters reports that the verdict will likely not have any impact on business pertaining to components that Apple purchases from Samsung for its various devices. Apple is currently Samsung’s biggest customer in terms of its parts business, which is estimated to pull in $13 billion in revenue next year. “The clear message from Samsung is that a strict internal firewall between its handset business and its components operations remains intact,” Reuters reporter Miyoung Kim wrote following word from an emergency meeting Samsung executives called on Sunday. According to the report, Samsung’s chips and other parts account for 26% of the component cost of Apple’s iPhone.

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Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.