Samsung

European Union regulators today announced the launch of a formal investigation of Samsung over mobile patents to determine whether the South Korean conglomerate breached EU antitrust rules in its legal dealings with competitors. The investigation is focused on so-called FRAND patents, a common rule that stipulates a patent applying to the standard must be adopted on “fair, reasonable, and non-discriminatory terms” (FRAND). According to the press release, EU regulators want to figure out whether Samsung “used certain of its standard essential patent rights to distort competition in European mobile device markets, in breach of EU antitrust rules.”

The Commission reminds that Samsung a decade ago promised to let rivals license its mobile patents under FRAND terms. The full-blown investigation comes in the light of the lawsuits Samsung filed against Apple at courts in Germany, France, the Netherlands and other countries around the world, asserting copyright infringement related to patents essential to wireless telecommunications standards.

The case is “a matter of priority,” the document reads. Patent blogger explained, “The European Commission can’t wait until Samsung finally wins a ruling based on such a patent and enforces it, potentially causing irreparable harm.” The full text of the European Commission Antitrust Commission announcement can be found below.

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Apple just announced its Q1 2012 earnings in a press release a few minutes ago, which revealed very impressive numbers from the company. Apple revealed it sold a whopping 37 million iPhones during the holiday quarter, which now gives the company the No. 1 smartphone manufacturer spot —back from Samsung, who previously held the title. Earlier this month, Samsung gave estimates of 35 million phones sold during the holiday quarter. This means Apple beat the company by 2 million.

Check out the full announcement and the live blog coming up in a few minutes for more record setting figures from Apple.

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With the growing sales of Apple’s mobile devices and the ever-increasing popularity of smartphones (analysts projected 30+ million iPhones for today’s holiday quarter earnings call), it is no surprise that the Mac-maker is rising up the chip-purchasing ladder. According to research firm Gartner, Apple is now the world’s largest buyer of silicon parts, spending an astounding $17 billion on semiconductors in 2011 and accounting for a 5.7 percent share of total silicon buying.

That’s a 34.6 percent increase over 2010— enough to jump two spots ahead of rivals Samsung and the world’s leading computer maker Hewlett-Packard (soon to be displaced by Apple). Apple’s rise stems of strong sales of iPads, iPhones and its popular MacBook Air ultra-portable notebook family. Samsung ranked second with $16.7 billion worth of semiconductors in 2011, a 5.5 percent share. Computer makers Hewlett-Packard and Dell and cell phone giant Nokia round up the list of top five chip buyers with $16.7 billion, $9.8 billion and $9 billion worth of silicon parts, respectively.

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[youtube=http://www.youtube.com/watch?v=vOSgfvTC35A]

Samsung is continuing its anti-Apple rant with a new television commercial titled “Samsunged.” Once more, the South Korean conglomerate laughs off those who would wait in line for a new iPhone. The commercial opens with the familiar scene as line waiters get a visit from their Galaxy SII-toting friend, and they promptly feel envious over his phone’s turn-by-turn navigation capabilities.

When asked by a girl waiting in the line how much he had paid for the navigation app, the Android person responded: “I didn’t, Galaxy S II just has it – it just comes with it.”  To that, one of the Apple fans remarked angrily: “Ooooh, we just got Samsunged!”

It is also worth noting that the advertisement subtly pokes fun at the iPhone 4S’s same design as the iPhone 4, as well as its widely reported battery issues. The commercial starts out with the line’s awaiting customers eagerly watching a streaming video of the device they are hoping to buy being unveiled online, and upon seeing the device, one customer sighed: “Awe, that looks like last year’s phone.” The scene immediately transitions into the Galaxy S II user bringing his friends a white smartphone charger, presumably because their device’s battery is almost dead.

Apple fans are obviously going to be seeing more of these advertisements as the Super Bowl approaches. It is certainly interesting, though, that these commercials paint Samsung customers as hipsters.

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Samsung made a formal request with the U.S. District Court in California for Apple to reveal the intricacies of its contract with wireless chipmaker Qualcomm, who currently supplies chips for the iPhone 4S, CDMA iPhone 4, and iPad 2. Qualcomm is currently in a cross licensing agreement with Samsung, bringing up the question of whether “Apple’s buying Qualcomm chips is as good as paying for the patents.” The documents could potentially reveal Apple’s plans to move to Qualcomm LTE chips in future iOS devices.

Specifically, Samsung defense lawyer Dylan Ruga wants to know if Apple is considered a “Qualcomm Customer,” a term that is “defined in certain licensing agreements between Samsung and Qualcomm.” The request was discovered in court documents by Korea Times and later confirmed by Samsung Electronics spokesperson Lim Yoon-jeong. Korea Times reported:

Samsung Electronics is alleging that Apple has infringed on Samsung-owned patents that relate to technology embodied in chipsets used in Apple’s iPhones and iPads. The documents are expected to determine whether Apple is in fact a direct customer of Qualcomm — and potentially immune from Samsung’s suits — or whether it purchased its chips through an intermediary.

Here is an excerpt from the document that has not been released by the courts:
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Verizon Wireless made 26 of its live FiOS TV channels available for online streaming on the Xbox 360. In a new report, GigaOM had the chance to sit down and talk to a Verizon representative at CES 2012, who said a similar app would be available for the iPad sometime this year. Verizon originally announced the streaming app about a year ago and a half ago, but the company held back from releasing it. Verizon accredits the hesistance to making sure networks have the same reliability as IPTV services so streams do not crash.

Verizon also rolled out a similar app to Samsung’s connected Blu-Ray players and televisions today. The iPad app will presumably be available free to those who subscribe to Verizon’s FiOS TV service. We look forward to seeing the app land sometime later this year. Obviously, this will only be available for paying FiOS customers.

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I had a chance to meet with Samsung Storage solutions at CES 2012 this week and got the low down on its new OEM SSDs that Apple tends to buy in large numbers.  Samsung and Toshiba are the OEMs that provide the SSDs in MacBook Airs.  Samsung’s 470 OEM SSD product is noticeably faster than the Toshiba model that Apple also puts in otherwise identical MacBook Airs.  We have talked about the speed difference before and how Air-buyers often will pay a premium for the faster Samsung drives.

Well, the speed difference is about to get even more noticeable. Samsung told me that it sold out of the 470 series OEM SSDs late last year and the company only makes a much faster variety: the 830 series.

How fast is the 830 Series controller/chips?  I had a chance to speed test the popular 2.5-inch 830 model late last year when it debuted.  Typical speeds were over 400MB/s write and 500MB/s reads (below, left).  That is almost twice as fast as the current MacBook Air SSD from Samsung (below, right), which itself is significantly faster than Toshiba’s SSD.

Samsung stopped short of announcing it is shipping the 830s to Apple, but the company confirmed it ran out of 470s a while ago and all of its SSD customers were receiving the updated 830 series. Samsung also confirmed that Apple is still a customer.

Today I ventured to the Las Vegas Apple Store to check the speeds of the MacBook Airs.  I checked a new 128GB MacBook Air right out of the box which had the same “APPLE SSD SM128C” listed in System Profiler as my year-old Air.  I checked the speed and it is indeed the old disk (same as above, right), which means the new Samsung SSDs haven not hit stores —at least here anyway.

Theoretically, a few things could happen at this point…

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Following reports this morning from Macotakara that claimed Sharp would be supplying display panels for a next-generation iPad, a conflicting report from Korean publication Electronic Times Internet News (via PatentlyApple) claimed Sharp “failed to pass Apple’s approval process for mass production.” The report also claimed Samsung and LG already kicked production for iPad 3 panels into full capacity as of the beginning of this year:

It has been confirmed that Samsung Electronics and LG Display will supply LCD panels for Apple’s iPad 3, which is scheduled to be unveiled as early as in Q1 this year. Sharp was originally known to be developing display panels, but reportedly failed in initial supply.

According to the report, Apple is planning on placing orders for 65 million LCD panels for iPad 3 during 2012. It also claimed Samsung and LG would be supplying 5 million displays in the first quarter to meet demand for the device’s launch. Although there is obviously no way to verify this, and the publication does not exactly have a track record for breaking Apple news, the report does mention the same XQGA (2048×1536) display as Macotakara’s. The report cited only an “industry source.”

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According to the latest ChangeWave Research survey posted Monday, both Apple and Samsung are enjoying “explosive momentum” as 2012 begins while other handset makers are struggling to win the hearts of minds of consumers, such as Canada-based Research In Motion, which today updated its struggling BlackBerry platform with new software features, and Taiwan-based HTC, which posted a 26 percent income drop today —its first quarterly profit decline in two years.

Based on data obtained from 4,000 North American consumers, 54 percent of respondents planning to buy a smartphone in the next 90 days will opt for an iPhone. This is a drop from 65 percent last quarter, but more than enough to keep the coveted title of the most sought-after device. The iPhone’s “industry leading” customer satisfaction remains off the chart at 75 percent by vendor and mobile OS each (3 in 4 iPhone owners said they are ‘Very Satisfied’ with their device). Google’s Android is second with 47 percent mobile OS satisfaction rating and Samsung and HTC are at 47 percent each…

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A report this evening from DigiTimes said the next iPad will have a monster battery that will more than double the current  6579 mAH to a whopping 14,000mAH.  Apple currently uses battery suppliers Simplo Technology and Dynapack who both denied to comment on the report.

Furthermore, Apple is set to unveil two versions of its next-iPad, “One for the high-end segment and one for the mid-range segment” according to another DigiTimes report.  Strangely, the report said the new iPads will be released at Macworld/iWorld in late January, a show that Apple has no plans to attend right now and bowed out of completely two years ago.

Apple is set to unveil its next-generation iPad – which will come in two versions – at the iWorld scheduled for January 26, 2012, according to sources at its supply chain partners

This is extremely unlikely; however, perhaps, a same-time but separate release could happen.  More details that are interesting were reported, as well….

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Perhaps in what might be read as a wake-up call for Apple, the Cupertino, Calif., gadget powerhouse was just served a dose of reality before a Dusseldorf court in Germany. A quick recap: Apple secured a sales ban on Samsung’s Galaxy Tab 10.1 in September on the grounds of too many similarities and patent infringement.

Samsung then re-engineered its device and re-introduced it under the Galaxy Tab 10.1N moniker, but Apple pushed for an injunction of that model, too. Today at the Dusseldorf court, presiding judge Johanna Brueckner-Hofmann made it known that Apple was pushing its luck with a request for an injunction.

According to Bloomberg, she said:

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UPDATE [Wednesday, December 21, 2011 at 7:25am ET]: A Samsung spokesperson chimed in, providing us with the official statement, included at the end of this article.

After Samsung confirmed the addition of four more complaints to its German patent offensive (two are standard-related patents, the other two being utility patents) on Monday, Apple this morning fired back by extending its Australian patent complaint to include Samsung-made cases for Galaxy tablets and smartphones, according to Bloomberg.

Apple issued the notice of infringement to Samsung in Australia over the cases, and will file a statement of claim, Apple’s lawyer Stephen Burley said at a hearing in Sydney today. Samsung’s lawyer Katrina Howard said at the same hearing the company was served with the notice that the cases infringe at least 10 patents.

The two companies are embroiled in a complicated legal fight that already includes more than 30 lawsuits filed against each other across the globe. The exact nature of Apple’s patent infringement claim concerning smartphone and tablet cases is not known, but 9to5Mac can’t help but wonder whether it has something to do with this.

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Last time we checked with research firm IDC, they listed Apple at 68.3-percent of the worldwide tablet market with approximately 9.3 million units of the iPad 2 shipped in quarter two of 2011. While the firm’s estimates for Q3 saw a drop to 61.5-percent of the market, Apple still leads the market and increased shipments from the 9.3 million in Q2 to approximately 11.1 million units in Q3.

To put that in perspective, Apple’s closest competitor, Samsung, is over 10 times behind with just 5.6-percent of the market. The overall tablet market increased 23.9-percent to approximately 18.1 million units, representing a 264.5-percent increase from the year-ago quarter.

As for where Apple stands in comparison to the overall Android tablet market, IDC expects Android tablet market share to increase rapidly in Q4 from just 33.2-percent in Q3 to 40.3-percent. It’s important to note that IDC recently included “media tablets,” such as Amazon’s Kindle Fire and Barnes & Noble’s Nook Tablet, in their worldwide tablet market estimates. These additions will more than likely account for much of the increase.

This morning, Morgan Stanley significantly raised its forecasts for 2012, predicting Apple could possibly sell 90 million iPads during the year (in addition to 190 million iPhones). The analysts apparently have high hopes for Android 4.0’s ability to offer a competitive alternative to iPad going forward:

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Last week Samsung got to breathe a sigh of relief as an Australian court ruled they didn’t “slavishly copy” the iPad with the Galaxy Tab 10.1, as Apple has been insisted from the onset in court documents. Yesterday, the South Korean company told the Sydney Morning Herald that the court cases have helped make their device a “household name” and today we are seeing the Galaxy Tab maker taking advantage of the media spotlight and the fact that it’s been in the headlines thanks to lawsuits and those cheesy commercials.

As tweeted by Martin Aungle, an Australian corporate and marketing communications professional, Samsung is now pitching its device as “the tablet Apple tried to stop”. The above advert ran in the Sun-Herald newspaper this week. Samsung has obviously decided to up the stakes in this game considering they resisted up until now mentioning Apple by name in their marketing communication. We’ll see, of course, whether publicly celebrating its courtroom victory at Apple’s expense will have any effect on sales.

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Today is a bad day for Apple’s legal sharks. First Motorola Mobility scores a ruling in Germany which has paved the way for a Europe-wide injunction on sales of Apple’s iOS devices and now High Court in Australia denies Apple’s request to appeal against an earlier decision which overturned the ban on Galaxy Tab 10.1 sales in Australia.

Put simply, the country’s highest-level legal instance has ruled that no, Samsung’s tablet does not “slavishly copy” Apple’s iPad, as the Mac maker argues in court documents. The Federal Court honored Apple’s recent request that its injunction against the Samsung tablet remain in effect until today at 4pm in order to allow Apple time to prepare an appeal.

According to the Sydney Morning Herald, Tyler McGee, vice-president of telecommunications for Samsung Australia, said customers in Australia will be able to pick up the Galaxy Tab 10.1 tablet “towards the latter part of next week”. Also…

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A new twist in the Apple vs. Samsung legal proceedings spanning more than two dozen lawsuits across continents as the Federal Court in Australia lifted sales ban on Samsung’s Galaxy Tab tablet today. The court unanimously overturned a ruling last month from Justice Annabelle Bennett which required that Samsung’s Galaxy Tab 10.1 be banned from sale in Australia.

Sydney Morning Hearld quoted the ruling:

Samsung will be permitted to launch the Galaxy Tab 10.1 in Australia provided it keeps accounts of all transactions involving that device in Australia.

Samsung’s Australian subsidiary says it is “pleased with today’s unanimous decision”. Reacting to the decision, Apple plans on appealing to the High Court. The Federal Court also honored Apple’s request that its injunction remain in effect until Friday at 4pm, to allow the company time to prepare an appeal. A full hearing on copycat accusations is set for March 2012, which could still result in a permanent injunction.

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In Australia, as part of discovery, Samsung got access to Apple’s Qualcomm baseband source code for the iPhone 4S (lookout for battery issues while you are in there Sammy!).

Other matters appeared to be resolved, including Samsung’s access to the firmware used in the iPhone 4S’ baseband chip, supplied by Qualcomm.

A software expert had approximately two hours’ access to the firmware and would submit his findings by Sunday.

According to FOSSPatents, Samsung’s lawsuits against Apple in Germany are really heating up after a Mannheim hearing set a schedule for January 20 and 27 of 2012. It looks like Apple has a tough case, as the hearing leaned towards Samsung’s claims.

The two patents asserted in today’s litigations are

• EP1005726 on a “turbo encoding/decoding device and method for processing frame data according to QoS”, and
• EP1114528 on an “apparatus and method for controlling a demultiplexer and a multiplexer used for rate matching in a mobile communication system”.

Samsung’s third German complaint against Apple, which wasn’t at issue today, relates to EP1188269 on an “apparatus for encoding a transformat format combination indicator for a communication system”.

Below is a full rundown of the issues discussed at today’s hearing..

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Florian Mueller isn’t a patent attorney but he plays one on his blog FOSSPatents.  For better or worse, he’s often quoted in the ongoing mobile technology patent battles where the winner is often Apple.  He’s also German so he probably understands this new, disturbing ruling a lot better than us (Our German is “rostig”)

Apple knows what it’s like to win injunctions against rivals. It won four of them against Samsung (two in Germany, one in the Netherlands and most recently one in Australia; all of them preliminary). Now it seems that Apple has just come out on the losing end of a patent infringement lawsuit. I have received a copy of what purports to be a default judgment by the Mannheim Regional Court barring Apple from selling in Germany — the single largest market in Europe — any mobile devices infringing on two Motorola Mobility patents and determining that Apple owes Motorola Mobility damages for past infringement since April 19, 2003.

If true, this would be a Hindenburg-sized backfire for Apple’s legal efforts in Europe.

The two patents and their US equivalents, Statements from Apple and Motorola and an update from Mueller below:
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Raising the stakes in the ongoing legal battle between Apple and Samsung over copycat accusations involving mobile devices, Samsung is upping the ante by asking to depose Apple’s iPhone designers, including Apple’s leading industrial design guru Jonathan Ive.

According to Josh Rosenthall of Edible Apple, depositions of Apple’s iPhone inventors Jonathan Ive, Douglas Satzger, Shin Nishibori and Christopher Stringer “will be taking place relatively soon” and ahead of the expedited trial between Apple and Samsung in the United States, scheduled for July 30, 2012.

According to Samsung’s motion, none of the aforementioned designers will be able to sit for deposition for various reasons. In the case of Jony Ive, the motion mentions “personal reasons”. Ive is especially important in this case. Jobs’s spiritual partner, it is said that no one could tell Ive what to do, at least until Jobs resigned. According to Jobs’s authorized biographer Walter Isaacson:

He called Jonathan Ive, Apple’s design chief, his “spiritual partner” at Apple. He told Isaacson that Ive had “more operation power” at Apple than anyone besides Jobs himself — that there’s no one at the company who can tell Ive what to do. That, says Jobs, is “the way I set it up.”

As such, Ive is the holder of Apple’s many secrets and inner workings, something Samsung is legitimately hoping to exploit ahead of the trial. And while Apple’s design guru really needs no introduction, here’s a brief overview of the others.

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The third quarter of 2011 marks a shift in the cell phone biz as Samsung takes the smartphone crown from Apple and China’s ZTE rises to become the world’s fourth-largest cell phone vendor by volume and Apple slides to fifth place. The bad news for Cupertino arrives just as the company for the first time in years missed Street expectations after shipping 17.07 million iPhones in the September quarter, a modest 21 percent annual growth and a notable 16 percent quarterly decline in units. As you recall, Apple in the June quarter sold 20.34 million iPhones, allowing them to beat Nokia and Samsung and become the world’s leading smartphone vendor, prompting Samsung to stop divulging smartphone and tablet shipments for competitive reasons.

Everyone was waiting for the new iPhone 4S.

Samsung today posted their quarterly earnings and they passed iPhone by an estimated ten million units. According to Reuters which cited a Strategy Analytics survey, Samsung shipped about 27.8 million smartphones, up nearly four times annually and 44 percent sequentially. This gave Samsung a 23.8 percent global market share in smartphones vs. 14.8 percent for Apple. Such a strong growth is attributed to their Galaxy smartphones, particularly the Galaxy S II model which sold ten million units in the five months since its introduction. Strategy Analytics attributed Samsung’s success to “a blend of elegant hardware designs, popular Android services, memorable sub-brands and extensive global distribution”, adding:

After just one quarter in the top spot, Apple slipped behind Samsung to second position and captured 15 percent share. Apple’s global smartphone growth rate slowed to just 21 percent annually in Q3 2011, its lowest level for two years. We believe Apple’s growth during the third quarter was affected by consumers and operators awaiting the launch of the new iPhone 4S in the fourth quarter, volatile economic conditions in several key countries, and tougher competition from Samsung’s popular Galaxy S II model.

Apple also slid to fifth place in Strategy Analytics’s worldwide cell phone rankings as ZTE shipped 18.5 million handsets for a five percent global market share. Apple CEO Tim Cook said at the October 4 iPhone 4S introduction that iPhone had five percent share of the global cell phone market, hinting at Apple’s phone strategy:

via Fortune

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CNET’s Brooke Crothers has heard some information about the iPad 3’s upcoming 264PPI display. As we’ve heard a lot in the past, it will be a 2048×1536 resolution display as long as the Korean display manufacturers, Samsung and LG, can produce them in large numbers. According to his source, there could be some problems building it in the monstrous quantities that Apple demands.

The closest that iPad display manufacturers like LG Display and Samsung can get is 2048×1536 resolution display, according to the source. That’s a PPI of 264, twice the 132 PPI on the iPad 2.

But whether manufacturers can make them in volumes that Apple demands is the question. “They have production plans for 2,048×1,536 displays. Starting in November. But those are only plans at this point,” said the source, referring to LG and Samsung.

“It’s not a question of making just one. That, of course, can be done. The challenge is making lots of them,” the source said. “This is a quantum leap in pixel density. This hasn’t been done before.”

If manufacturers are not able to hit the volumes necessary for the higher resolution, there is an interim option of 1,600×1,200, according to the source.

The display is also expected to have a brightness of 550 nits. That’s pretty bright, as the typical laptop display panel tops out at about 350 nits.

I don’t think it is as easy as dropping the resolution down to 1600×1200. Apps don’t scale that easily even if the aspect ratio is the same. If for some reason, they can’t pump out the 2048×1536 in sufficient numbers (and Samsung is already testing better ones), Apple will continue with the same resolution….or wait until they can produce enough high resolution displays.

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