It seems that the proclaimed 'patent war' is finally reaching its stalemate. According to a recent MSN news article, it appears that the prospects of any major confrontation are slimming by the day. (See the article here)
Beyond recent activity, what has been interesting throughout Apple and Samsung's heated patent dispute has been a long-standing 'symbiotic' relationship, so to speak. This relationship starts with Samsung's highly diversified corporate level strategy in business lines such as chips, multimedia devices, and more. The firm's manufacturing edge has given it the supplier power in serving Apple's products with its flash memory chips. Highly reliant on these parts, Apple should have had a bit of reluctance in its attack.
Interestingly enough, Apple really set the stage for the advancement of its wireless mobile devices, thereby creating the space and testing the waters for Samsung to fully leverage its own core competencies in entering with strong products. Given the tested space and tested products, Samsung is perfectly vertically-integrated to produce and deliver products that are on par with Apple's products.
The patent war introduces an interesting implication for the relationship of these longstanding partners and rivals. Despite their different business level strategies in the mobile device space, they manage to bump heads to compete for the same group of customers. Apple pursues a broadly differentiated strategy, whereas Samsung tweaks its products to meet local tastes with strong market penetration in developing countries.
As their rivalry ensues, the only certain thing is that patents will serve to be valuable in claiming 'first-to-market' ideas in which the device makers strive to create network effects by this advantage.
Well written post and keen insights into the Apple Samsung dynamic! I definitely agree that patents will play an integral role in the future success of both companies. However, I'm not sure that Apple should have been more cautious in suing Samsung- the reason being that their relationship is a two way street. Despite Samsung's supplier role, Apple is their biggest paying client. If Samsung leveraged their supplies, Apple would find a new supplier leaving Samsung with a huge void to fill. Essentially, Apple has just as much leverage as Samsung does, making their relationship even more tenuous. With this being said, I think the law suits make some sense in that Samsung would be reluctant on pulling supplies. It kinda seems like both parties are simultaneously at each other's throats, resulting in a wacky stalemate of sorts.
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