What makes one wonder is how Samsung thought that it would get away with such blatant IP offenses in the U.S., Europe, and other countries that have and seriously and fairly enforce IP rights. 

And if that weren’t wondrous enough, for Samsung to engage in such blatant IP offenses that attack what is probably your biggest customer’s—Apple does about $7 to $8 billion in purchases from Samsung yearly—core businesses borders on the insane.  I suppose the thinking at Samsung was that Apple would not sue for infringement, because Samsung supplies certain important or even critical parts for several of Apple’s products.  Well, that calculation was wrong.

I suppose the thinking at Samsung was that Apple would not sue for infringement, because Samsung supplies certain important or even critical parts for several of Apple’s products.

Accordingly, I wonder if this will have any impact on that relationship. Would anyone care to offer any informed opinion on the likelihood and practicality of Apple seeking other manufacturers for those components?

Accordingly, I wonder if this will have any impact on that relationship. Would anyone care to offer any informed opinion on the likelihood and practicality of Apple seeking other manufacturers for those components?

Apple will look for a manufacturer who can build huge numbers of parts, at best possible quality and best possible price. Samsung will look for customers that buy huge numbers of parts, and pay reliably. Neither the buyers at Apple nor the sellers at Samsung care about any lawsuits that are going on, as long as Apple pays and Samsung delivers.

Hey Nemo, how’s that overactive imagination? Seems to be fairly accurate!! Thanks for your insight. It’s been very interesting reading.

Dear gnasher729:  Your point is well taken.  To the extent that Apple and Samsung need each other—Samsung needs Apple’s billion in purchases, while Apple needs certain of Samsung’s parts—the two of them may find it impossible to effect a complete divorce, notwithstanding their IP infringement disputes.  However, the relationship is certainly strained, and each of them is looking for a new partner.

Between the two, I think Samsung will have a harder time if their relationship with Apple falls apart.  For the parts that Apple buys from Samsung, either Apple already has 2nd sources, there are 2nd sources Apple could use or there are other companies that can supply what Apple needs.  For DRAM Apple can go to Hynix, Micron, Elpida, etc. For Flash Apple can go to Toshiba, Hynix, Micron, etc. For displays Apple can go to LG, Sharp, Hannstar, etc.  To build Apple’s “A#” processors i’m sure TSMC (already rumored to be running silicon for Apple), IBM, Intel, Global Semiconductor and others would love to get that business.
In Samsung’s case, if Apple bails and is successful in their legal proceedings against Android manufacturers, Samsung is going to be sitting on a whole lot of underutilized manufacturing capacity in many divisions.

This is yet another legal blow against Samsung and Android. As these setbacks add up, the decision makers at Samsung and other companies have to factor in the potential costs of this line of business. At some point the risk becomes too high.

If these legal decisions hold up, Samsung will have to kill this product. Do they come out with another Android tablet? Do they partner with Microsoft or some other? Do they go it alone with their own OS? Each of these also has risk.

They could also just get out of this market for the time being and patch things up with Apple.

@Nemo

I think Apple has already severed it’s supply relationship with Samsung. The most recent earnings call from Samsung indicated component part sales were down (not hard to derive the loss of Apple’s business from that since they couldn’t keep up with demand when they had Apple’s business) and that they anticipated sales to be lower for the foreseeable future.

Also the significant delay in the iPhone 5’s debut is clear evidence of Apple’s problem with securing alternate parts.