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Apple vs. Samsung is about ecosystems, not tablets or patents

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Apple has made its concerns official. The iPhone maker fears Samsung tablet will lure consumers away from the powerful iTunes ecosystem. Apple’s been successfully leveraging iTunes to tie people to the platform through app and entertainment content sales.

The heated Apple vs. Samsung legal battle over who’s copying who is really about the ecosystem rather than the hardware or the patents. That’s the gist of today’s hearing before the Federal Court in Sydney related to an Apple-requested ban on sales of Samsung’s Galaxy Tab 10.1 tablet in Australia. According to Smh.com.au, lawyers for Apple argued that the launch of the Galaxy Tab 10.1 could take away iPad 2 sales so quickly that buyers may be “seduced” from the iOS platform.

It’s all about the apps and the broader ecosystem, Apple’s legal team told Justice Annabelle Bennett, arguing the Galaxy Tab 10.1 “is vastly the one that is going to be targeting the iPad 2”. IDC numbers released today suggest that that tablet shipments to Australia and New Zealand doubled sequentially in the June quarter, which the research firm attributed to an influx of Android tablets recently released into those markets.

Apple’s lawyers then resorted to the “fire hose” metaphor to make their case:

This is going to be launched on the market with the velocity of a fire hose and it is going to just come in and take away iPad 2 sales so quickly that by the time we get to final hearing the full impact of the patent infringement will be to the detriment of Apple and to the benefit of Samsung.

And this bit about the battle of ecosystems:

They’ll then be Android people and the investment in the apps that they make to purchase on their Galaxy Tab will be something they can’t use on an Apple product.


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Just like Verizon, T-Mobile sides with Samsung in Apple litigation

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Just like Verizon, T-Mobile has chosen to side with Samsung in its fight against Apple reports Foss Patents. T-Mobile’s reason, in response to a preliminary injunction proposed by Apple, is that they don’t want key 4G devices to be banned for the holiday season. And since it doesn’t look like T-Mobile is getting the iPhone anytime soon, Samsung’s 4G phones could be a big part of their sales. Check out T-Mobile’s response below:


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Verizon sides with Samsung in Apple litigation. Why?

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Here’s the story (via Daring Fireball). The short of it is that Verizon asks the court not to issue Apple’s requested injunction against Samsung products because an injunction “is not in the public interest… It significantly limits consumer options and crippling the free flow of goods to Verizon and its customers”.

The obvious response is what injunction wouldn’t?

The question is: why would Verizon throw its weight behind Samsung in this battle now that it has the iPhone?

Perhaps Verizon isn’t as happy with the iPhone and as they were in early 2011.

Notice the love start to peel away in the video below. Verizon CEO Lowell McAdam was expecting to have an iPhone 5 this summer and counts that as a reason for missing targets in the third quarter. Revenues overall are flat and Verizon isn’t seeing the LTE money they were hoping for. Samsung obviously sells a bunch of LTE phones and Tablets that Verizon wants to capitalize on (and has a lot invested in) including the Galaxy Tab 10.1, Droid Charge, and the Droid Nexus Prime due out later this year…


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Oh Samsung, you are making this too easy

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Having a look at the otherwise impressive Galaxy S II phones from Samsung, I noticed that the USB AC power adapter had a ‘familiar’ feel to it. Turns out, it is almost an exact replica, within a millimeter in every direction.  Compare to their previous USB power adapter.


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Ahead of the launch, Samsung wants iPhone 5 banished from Korea

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An artist’s rendition of iPhone 5.

The Korea Times reports that Samsung “is seeking a complete ban” on the iPhone 5 sales in Korea – even before the handset is even released, let alone officially announced. Local carriers KT and SK Telecom have so far sold about 3.1 million iPhones in the country. The paper quotes an unnamed Samsung senior executive:

Just after the arrival of the iPhone 5 here, Samsung plans to take Apple to court here for its violation of Samsung’s wireless technology related patents. For as long as Apple does not drop mobile telecommunications functions, it would be impossible for it to sell its i-branded products without using our patents. We will stick to a strong stance against Apple during the lingering legal fights.

Another Samsung executive is “quite confident” about “a big breakthrough” provided Samsung wins in Germany, adding that “so will other envisioned efforts against such products as the iPhone 5”. The report goes on to mention that iPhone sports an LG Display-made screen, LG Innotek’s eight-megapixel camera, Samsung-made NAND flash and A5 chip and an NFC chip for wireless payment.

The twist in this case, of course, is the fact that Apple is Samsung’s biggest customer, buying displays, NAND flash memory and custom-built A4 and A5 chips for its products. It has been reported that Samsung may soon lose its iOS device processor contract as Apple turns to rival TSMC.

The manufacturing relationship means Samsung gets information about the innards of Apple’s non-released devices months before the actual manufacturing ramp up. This early access to Apple’s designs could have led Samsung to move with the iPhone 5 ban in Korea ahead of Apple’s official launch. On the other hand, Apple did not accuse Samsung yet of abusing its manufacturing contract to rip off Apple’s upcoming devices with its own products.


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Digitimes: TSMC confirmed as Apple’s new processor fab

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The rumors have been going on for months, but Digitimes is today saying Apple’s new processor foundry is Taiwan Semiconductor Manufacturing Company (TSMC). The move by Apple is believed to be precipitated by Apple’s ongoing legal battles with Samsung, who has provided Apple with processors since the original iPhone was released in 2007 through Apple’s release of “its own” A4 processor and A5 iPad processor earlier this year.

Apple has recently signed a foundry partnership agreement with Taiwan Semiconductor Manufacturing Company (TSMC), industry sources have claimed. Under the terms of the agreement, TSMC will apply its 28nm and 20nm process technologies to produce Apple’s next-generation CPUs, according to the sources.

The contract appears to be long and lucrative for TSMC..

TSMC is believed to have quietly secured Apple’s contract, and even succeeded in extending the deal to cover the manufacture for the A6’s successor, the sources said.

In addition, the agreed contract quotes are favorable to bring little impact on TSMC’s profitability, the sources revealed. TSMC managed to negotiate a good price, allowing gross margins yielded by Apple’s orders to be similar to its overall gross margin performance at present, the sources indicated. TSMC’s gross margin for the second quarter of 2011 arrived at 46%.

The details weren’t released publicly and as can be expected, neither company is commenting on the move.


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Windows 8 tablet gets previewed

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[youtube=http://www.youtube.com/watch?v=59mP3R4I8wU]

Joanna Stern at the Verge does an overview of the Windows 8 Samsung tablet that Microsoft is displaying at BUILD today.

One caveat noticed by DF:

However, fan noise is very noticeable, as is the heat coming out of the top vent, and a fast boot doesn’t excuse the slow wake-up times compared to ARM-based cellphones and tablets.

Tablet devices running Windows 8 should be showing up next year and look to take on Apple’s dominance in tablets with its iPad (which should be on version 3 by then).


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Samsung targets iOS devices in France as Apple puts brakes on Motorola until Google merger is completed

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This is a Samsung-branded Windows 8 tablet Microsoft is giving away to BUILD attendees today. 

The latest in the ongoing patent saga involving Apple, Google, Motorola and Samsung includes an unexpected twist as Samsung goes after iPhone and iPad with a complaint filed before a Paris district court in July. The filing alleges infringement of Samsung’s three technology patents, reports AFP. The first hearing is expected in December of this year.

Meanwhile, patent expert Florian Müller notes on his blog FOSSPatents that Apple has filed motions to temporarily halt two Motorola lawsuits until Google completes its $12.5 billion acquisition, which shook the technology world last month. Put simply, Apple argues Motorola waived its rights to sue when it transferred patents to Google. Apple wrote:

To further its pending acquisition by Google, Motorola has surrendered critical rights in the patents-in-suit, such that Motorola no longer has prudential standing to pursue this action. According to the publicly-filed Merger Agreement, Motorola has ceded control of the most basic rights regarding the patents-in-suit

As you know, Google has transferred some of the Motorola patents to HTC, in addition to the ones acquired from Palm and Openwave Systems. HTC then used those patents to counter-sue Apple. Back to Apple vs. Samsung…

Financial Times today opined that Samsung needs to hit the reset button, predicting a licensing agreement of sorts provided Apple succeeds in blocking Galaxy products in the U.S. next month. Contrary to the reports, the publication thinks “Apple is restricted from taking its chip business to Samsung’s rivals in Taiwan because Samsung offers a complete package of components that other firms cannot match”. However, there are indications that Apple’s been lowering Samsung orders for some time and it’s widely believed the company is eager to take its silicon business to TSMC beginning next year.


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iPad 2 estimates jump from 14 million to 20 million for Q3

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A new report from Taiwan Economic News claims Apple’s main supplier Foxconn has significantly upped its iPad 2 shipment estimates from 14 million to  20 million units for Q3. The report notes this marks a significant “42.8% increase from its original projection” made in July. This confirms previous reports for third quarter estimates we told you about last week.

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Wow, Apple actually got Samsung’s Galaxy Tab 10.1 banned in Germany

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The verdict is in.  German consumers won’t soon be able to pick up a Samsung Galaxy Tab 10.1.

A Dusseldorf court today upheld the temporary sales ban it issued Aug. 9, rejecting Samsung’s bid to overturn it for the most part. The judges won’t ban sales in other European Union countries as Apple had sought, Presiding Judge Johanna Brueckner-Hofmann said when delivering the verdict.

The judge stopped at German borders instead of issuing a full EU wide ban but further rulings could see the ban spread.

“The court is of the opinion that Apple’s minimalistic design isn’t the only technical solution to make a tablet computer, other designs are possible,” Brueckner-Hofmann said. “For the informed customer there remains the predominant overall impression that the device looks” like the design Apple has protected in Europe.

The ruling is a big victory for Apple and as the Verge puts it, “the decision could foreshadow the future of Samsung’s Galaxy Tab 7.7 and, honestly, any number of rectangular-shaped tablets in Germany as well.”

FOSSPatents mentions some other “oddities” which could play a role in the widening scope of the case:

 The Community design that the Düsseldorf Regional Court deems valid and infringed was also presented by Apple in its Dutch proceeding, but a judge in The Hague threw it out.

If the face of the Galaxy Tab is what is at issue, it isn’t Samsung that is at fault, it is Android.  Cross-posted at 9to5Google.


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Apple moves to pull Samsung phones and tablets from Japan, seeks damages

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Apple’s patent infringement claims against Samsung now include twelve courts in nine countries on four continents. Reuters reported this morning that Apple is now formally suing Samsung in Japan and seeking to block sales of Samsung phones and tablets in the country:

Apple has filed a suit with the Tokyo District Court seeking the suspension of sales of Galaxy S and its sequel S II smartphones and the Galaxy Tab 7 in Japan, according to sources close to the matter. The first hearing was held on Wednesday, the source said.

The iPhone maker is seeking 100 million yen, or approximately $1.3 million, in damages. Apple previously had filed four complaints before the Tokyo District Court, according to patent expert Florian Müller. Coincidentally, Japan is also another high-revenue market for Apple. Other countries where Apple took Samsung to court include Germany, U.K., U.S., Australia and more.

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Apple to ship 86.4 million iPhones in 2011, blow past Nokia –report

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We knew in July that Apple had passed the imploding Nokia for the global smartphone unit lead by manufacturer. However, today Digitimes forecasts that by year end Apple will have sold 86.4 million iPhones by year which will easily best Nokia’s once insurmountable lead (Nokia had over double Apple’s share just last year).

Apple’s smartphone shipments are projected to top 86.4 million units in 2011, up 82% from 47.5 million units in 2010. In contrast, Nokia’s smartphone shipments in 2011 will decline to 74.4 million units from over 100 million in 2010, said Luke Lin, analyst for Digitimes Research.

Just because it almost doubled its unit shipment, doesn’t mean it is game over for Apple, however. Android makers Samsung, HTC, LG, Huawei and ZTE all showed better percentage gains though they shipped relatively few smartphones in 2010.
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Apple successfully blocks Samsung from showing off Galaxy Tab 7.7 at IFA in Germany

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[youtube=http://www.youtube.com/watch?v=5q9w0dxosTE]
(We got a look at the Tab 7.7 before it was pulled)

Apple won a pretty significant victory today in its attempts to block Samsung from selling its iPad competitor products in Germany and in greater Europe.  This week’s IFA show is a CES-like pan-European event which showcases new consumer products from just about everyone except Apple.

Most of the buzz this year however is around two of Samsung’s new products, the Galaxy Tab 7.7 and the Galaxy Note 5.3.  Both have 1280×800 SuperAMOLED Displays and run Android 3.2 but the Tab falls under the line of products that Apple is trying to block and is currently under a set of injunctions in various parts of the world.

Interestingly, Samsung was originally showing the 7.7 devices to reporters with “not for sale in Germany” stickers attached. However last night, Samsung started removing the devices from the floor and covering up the advertisements like the product never existed (below).

It appears that Apple got Samsung to block the whole Tab line.  The Tab 7.7 is much smaller than the iPad weighing only 334 grams, yet has a higher resolution screen – so it appears that Apple’s injunction is very broad.

Bloomberg reports:

Samsung, Apple’s closest rival in tablet computers, pulled the just-unveiled Galaxy Tab 7.7 out of the IFA consumer- electronics show in Berlin after a Dusseldorf court on Sept. 2 granted Apple’s request to ban sales and marketing of the product, James Chung, a Seoul-based spokesman for Samsung, said by telephone today.

“Samsung respects the court’s decision,” Chung said, adding that the company believes it “severely limits consumer choice in Germany.” Samsung will pursue all available options, including legal action, to defend its intellectual property rights, he said.

It will be interesting to see what direction this goes.  Will Apple be able to successfully block Samsung’s (and others’) tablets for sale across the world? There is some concern that if Apple doesn’t win in these cases, damages to Samsung could be significant.

Images via ThisismyNext, Cross-posted on 9to5Google.com
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Samsung no longer exclusive chip supplier as Apple turns elsewhere for A6 processor?

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Samsung, a producer of critical parts for Apple’s gadgets, may be on the verge of suffering another financial blow from Apple. A new report alleges that the Cupertino, California-headquartered personal electronics maker began lining up alternative suppliers for the A6 chip. The in-house designed processor should debut in iPad 3 next year and eventually make its way into iPhone 6 .

Trade publication DigiTimes has it on good authority that Apple recently visited an assembly line of packaging and testing firm Siliconware Precision Industries (SPIL). Based on what they saw, they concluded that officials from Apple are reportedly willing to discuss the possibility of working together on the upcoming A6 processor:

Apple recently conducted a visit to SPIL’s assembly line, and both parties discussed opportunities for cooperation, the sources revealed. SPIL stands a chance of becoming the first packaging and testing service provider designated by Apple, cutting into the supply chain of the vendor’s processor line, the sources said.

The report explains SPIL is likely to “snatch outsourcing orders” for the A6 chip. Needles to say, SPIL is denying the story, which is what companies caught up in juicy Apple rumors always do.


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Gartner: Trends continue as iOS and Android swallow up smartphone industry

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Gartner’s latest global smartphone numbers are out and if your name isn’t iOS or Android, the future looks pretty bleak.  While iOS continues to gain share at pace even without a new model release (up one point for the quarter and over 4 points year over year), the bigger story continues to be Android’s outright theft of marketshare from Symbian.  Just in the last quarter, 10 percent of the market shifted from Symbian to Android and for the year, the number is close to 20%

Meanwhile Blackberry continued its paced slide down another 2 points quarter over quarter while Samsung’s Bada made modest gains. In the “Other” category, Windows Phone 7 somehow lost market share falling from 2% to 1% and Windows Mobile is now off the charts.  HP’s webOS  is somewhere in the “other” as well with Meego and the ghosts of smartphone past.

Graph via PED, cross posted on 9to5Google.com
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Apple’s EU Honeycomb sue-age may carry a huge risk

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Yesterday, Apple blocked Samsung’s Galaxy Tab in the EU as it had in Australia previously. Today, it is blocking Motorola’s XOOM.

According to Reuters, this is a high risk strategy for Apple maintaining its market share lead. The cases could take months, if not years to come to court and Apple will have to provide more substantial evidence in subsequent court cases that the design of the Galaxy infringed its patents or copied their designs in order to make any bans permanent. So, they aren’t done deals. And if Apple Loses, it will owe Samsung a lot of money.

If Apple loses it will be liable for the business lost by Samsung in the meantime.

“Apple has a strategy of filing patents, getting some protection and trying to prevent other people from entering the market in the short-term,” said Nathan Mattock, an intellectual property lawyer at Marque Lawyers in Sydney. “If Apple’s wrong it will have to pay Samsung a considerable amount of damages, so it’s potentially quite risky.”


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Apple looking at 55-inch LG OLED displays for late 2012 Apple Television?

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Smarthouse has a particularly bad reputation when it comes to Apple rumors, especially when they involve OLEDs.  But we’ll bite on their latest because it is so tantalizing.

There is also speculation that Apple has held discussions with LG Display the Company that makes display screens for MAC products, about the possibility of getting access to a new 55 LG OLED panel that will be used in a new Apple TV that will be capable of delivering music, Video & TV shows over an IP network.

On Friday LG said that they will launch a limited production OLED TV late in 2012.

There are no shortage of people advocating for an integrated Apple television, but certainly the leader is Piper Jaffray’s Gene Munster who expects one next year.

As far as the big display makers are concerned, Apple’s relationship with LG is probably the strongest.  LG makes iPod Touch and iPhone Retina Displays and Apple secured a $500 million dollar investment in LG displays in 2009.  The net of that was a temporary exclusive on the panels for the 27-inch display that Apple’s iMacs and now Thunderbolt Displays now use.  Sony makes OLEDs as well but doesn’t have a strong relationship with Apple, at least as far as displays are concerned.  The other big OLED maker is Samsung, who is now tangled with Apple in patent disputes.

If Apple does do a TV, it will likely have some sort of game-changer tech innovation that Apple could exclusively own for a period of time.  A 55-inch OLED would probably qualify even though yields will be low and prices will be astronomical during the ramp up.

We’re still not convinced, however.
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Surprise! Apple swaps LG for Samsung display drivers in iPad 2s

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Recently manufactured iPad 2 units have this Wise-View controller, a Samsung technology.  Previous iPad 2s had an LG chip. Photo: Chipworks

For all the talk about Apple reducing its reliance on frenemy Samsung and getting its chips and gadget parts elsewhere, iFixIt reports that silicon experts Chipworks have found out that newer versions of iPad 2 incorporate a new display driver from Samsung whereas iPad 2 units manufactured up to March 2011 used display driver labeled as SW0627B, “an LG display driver that dates back to the original iPad”. As for the new chip labeled as SW0627B, used in the original iPad and newer iPad 2s:

Chipworks’ latest batch of iPad 2s, however, seem to be using a new Wise-View chip. Little to no information can be found about the chip at this time, except that it appears to be a technology developed by Samsung. Sadly there’s no information on Samsung Semiconductor’s site regarding this display driver product line.

Despite lack of information, the Wise-View chip can be yours on Taobao for 24 Yaun a piece, or some $3.7. iFixIt speculates that Apple changing display driver suppliers may be “foreshadowing the release of an updated iPad with a higher-res screen”, providing no substantiation to support the theory, though. If you ask us, it’s just Apple at its best, covering all bases and making sure it doesn’t rely too heavily on a sole supplier.


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Family ties earn this Smart Cover knock-off a Samsung certification and a place on their store shelves (UPDATE: product pulled)

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[UPDATE July 19, 2011 8:10 Eastern]: The article has been updated with a comment from Samsung included at the bottom. In addition, an Asian Economy story establishing family bonds between the case maker’s CEO and Samsung’s chairman, provided in the comments, has been added.

Apple is suing “the copyist” Samsung because they “imitate the appearance of Apple’s products to capitalize on Apple’s success”. Be that as it may, the similarities between the two tech giant’s gadgets are nothing compared to what other Asian knockoffs are doing for a living. Like Anymode Corp., which is in the business of designing, manufacturing and selling a blatant Smart Cover rip-off, pictured above and below. Conveniently dubbed the Smart Case – obviously because Apple trademarked it – the accessory comes in five pastel color choices. It too can prop a tablet upwards and it folds like Apple’s accessory as well. The Smart Case is designed exclusively for Samsung’s Galaxy Tab 10.1 – and not by a coincidence, warns our reader Jun.

Apparently Sang-yong Kim, the Anymode CEO, was “born in Samsung family”. Jun tells us – and you’re free to take it at face value – that the Anymode CEO “is nephew of the Samsung’s chairman Kun-Hee Lee“, the claim we were unable to verify at the time of this writing. UPDATE: This Asian Economy article establishes family bonds between Sang-yong Kim and Kun-Hee Lee. The 69-year old chairman of Samsung Electronics stepped down in April 2008 amid the Slush funds scandal, but returned at the group’s helm in March of last year. He is credited for improving the quality of Samsung’s design and products. Anymode is not even attempting to conceal the Samsung link. The company describes itself on a LinkedIn page as…


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ITC rules: HTC violated two of Apple’s patents

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CNET reports that the International Trade Commission has officially ruled that phone maker HTC has violated two of Apple’s patents related to iPhone technologies. This blow to HTC opens the door to a potential ban on imports of HTC products into the United States. Apple initially filed 10 patent violations against HTC, but increased that amount by five earlier this week. HTC obviously does not agree with the ITC ruling and provided the following statement:

HTC will vigorously fight these two remaining patents through an appeal before the ITC commissioners who make the final decision,” said Grace Lei, general counsel for HTC. “This is only one step of many in these legal proceedings.

As we know, Apple and Samsung (and Motorola too) are currently in a similar situation with Apple claiming multiple patent violations against the company. The twist in the Apple and Samsung case is that Samsung is counter-suing by claiming that Apple is violating Samsung’s patents.

There are only a few possibile endings if Apple wins HTC case. Either the two companies settle (with Apple taking home some more of HTC’s money – Microsoft already takes $5/phone and Oracle is looking for some more) or HTC stops selling Android devices. In all likelihood, if the ITC does not agree with HTC’s appeal, the two technology heavy weights will work out some settlement.  Cha Ching!

More on the patents below:


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Next iPhone: Glass back or not?

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One of the more controversial components of the iPhone 4 is its non-Gorilla glass backing.  Glass is a great material for displays obviously because it is transparent, relatively strong and scratch-resistant.  However, it is more questionable for the back of a device because it breaks spectacularly where traditional materials are stronger and lighter.

But it does look awesome on the back of the iPhone 4.

So the question of the day: Should Apple’s next iPhone continue to use a glass backing or should they move to a different material like plastic, aluminum or liquid metal?


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iSuppli: Apple became world's largest Semiconductor buyer in 2010 and 2011 won't be close

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Looking at the graph above it really feels like Apple is taking huge leaps in growth while the rest of the industry is happy to be taking baby steps.  iSuppli today says that with the help of the iPad, Apple passed Samsung and HP in 2010 to become the largest consumer of semiconductors in the world.  While 2010 is relatively close still, 2011 will have Apple pulling away from the pack.

Apple in 2010 bought $17.5 billion worth of semiconductors, a 79.6 percent increase from $9.7 billion in 2009. This represented the highest rate of increase among the world’s Top 10 OEM semiconductor buyers, allowing Apple to rise up two positions to take the No. 1 rank in 2010. Apple in 2009 was the third-largest semiconductor purchaser, behind Hewlett-Packard Co. of the United States and Samsung Electronics Co. Ltd. of South Korea; it was sixth in 2008.

NAND Flash for iOS devices was a big contributor to Apple’s rise.

“Apple’s surge to leadership in semiconductor spending in 2010 was driven by the overwhelming success of its wireless products, namely the iPhone and the iPad,” said Wenlie Ye, Analyst for IHS. “These products consume enormous quantities of NAND flash memory, which is also found in the Apple iPod. Because of this, Apple in 2010 was the world’s No. 1 purchaser of NAND flash.”Apple is likely to continue increasing its semiconductor spending during the coming years at an above-average pace, allowing the company to extend its lead over Hewlett-Packard, Samsung and other OEMs in 2011 and beyond. In 2011 Apple’s semiconductor spending is expected to exceed that of Hewlett-Packard by $7.5 billion, up from $2.4 billion in 2010.

Via iClarified
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Apple COO Cook: Tablets to outsell PCs, (Cars to outsell trucks)

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http://www.viddler.com/simple/30fe0cca/

According to Business Insider, Apple COO Tim Cook told Goldman analyst Bill Shope, “he sees no reason why the tablet market shouldn’t eclipse the PC market over the next several years.”

That is right exactly in line with Steve Jobs comments of a year ago.  Shocking, we know.
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