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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.


Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.

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