Apple and Samsung are two of the largest tech companies in the world, and they have been rivals for a long time. They’re always trying to outdo each other in design, technology, and market share. But how did these two companies, who used to be partners, become such fierce rivals? It all started with smartphones. As smartphones became more popular in the early 2000s, both Apple and Samsung saw a chance to take control of the market. At first, their competition was friendly, but it quickly became more intense as both companies tried to be the best.
The Rise of Smartphones
The rise of smartphones marked a significant turning point in the tech industry, and it was during this time the competition between Apple and Samsung truly began. The smartphone revolution presented an opportunity for both companies to dominate the market and establish themselves as the leading players in the tech world.
The Smartphone Revolution and the Opportunity for Domination
In the early 2000s, smartphones were still in their infancy, but it was clear that they were poised for explosive growth. As more and more consumers began to adopt these devices, the potential for domination in the smartphone market became apparent. Apple and Samsung both saw this opportunity and were quick to seize it.
Apple was the first to take advantage of this by releasing the iPhone in 2007, which quickly impacted the smartphone market. Samsung wanted to be included, so they stepped up their game by making their own smartphones and adding new features like larger screens and better cameras. This led to competition between the two companies, where they kept trying to outdo each other with each new release.
Brief History of Apple and Samsung Relations
Apple and Samsung are two of the biggest tech giants in the world, and their rivalry is intense. In 2021, according to Forbes Global 2000 list, Apple’s market value was $2,252.3 Billion, while Samsung Electronics was $510.5 Billion. But how did these two companies, who once had a cooperative relationship, become bitter rivals?
Apple started in 1976, and Samsung in 1969. Both are now leading tech companies. Before their rivalry with Samsung, Apple faced IBM in the 80s, Microsoft in the 90s, and Google in the 2000s. Samsung competes with Apple in the notebook, tablet, and smartphone markets and supplies components for Apple’s devices, like the NAND flash memory chip for the iPhone and OLED displays.
During the 80s, Samsung primarily concentrated on the semiconductor industry, and Apple was one of its biggest clients, purchasing billions of dollars worth of components for its electronics. The CEO of Samsung would often seek advice or negotiate with Steve Jobs. The two companies had a cordial relationship until something changed.
Once friends, now enemies
Apple and Samsung used to be close partners, with Samsung providing electronics to Apple for billions of dollars. However, things changed when Samsung introduced their Android-powered Galaxy series smartphones in 2009. The rivalry between Apple and Samsung started when Apple’s Late CEO, Steve Jobs, accused Samsung of copying, leading to a lawsuit filed by Apple.
War of Thermonuclear Proportions
Apple’s co-founder and former Late CEO Steve Jobs were furious when Samsung released its Android-powered smartphone in 2009. He saw it as a direct competition to the iPhone and despised the Android operating system. Walter Isaacson, Steve Jobs’ biographer, reported that Jobs sought to wage a ‘thermonuclear war‘ against Android over plagiarism allegations and copy Apple’s unique features. However, Tim Cook, Apple’s supply chain expert, was concerned about endangering the relationship with a crucial supplier.
When Samsung’s Vice Chairman Jay Lee visited Apple, he was met by Jobs and Cook, who expressed their worries and suggested that Samsung should pay a fee to use some of Apple’s technology. The proposal was to pay $30 for every smartphone and $40 for every tablet made by Samsung, with a discount of 20% if Samsung also allowed Apple to use some of its technology. This would have earned Apple $250 million in the year 2010.
Samsung declined the offer, asserting that the company had not engaged in any infringing activities or violated any trademarks, as alleged in the proposal. Additionally, Samsung countered by claiming that Apple was copying, leading to court cases between the tech giants.
The Apple vs. Samsung Legal Battle
By 2011, the once-friendly relationship between the two companies had soured, with Apple making 16 claims against Samsung for allegedly imitating Apple’s design, operating system, and more. Apple filed various lawsuits against Samsung in various countries for alleged patent infringement. They sought $2.5 billion in damages. Samsung retaliated by filing a counterclaim, accusing Apple of infringing on five of their patents related to wireless and data transmission technology.
Three central claims stood out: trade dress, trademark, and patent infringement.
- Trade Dress Infringement: This claim by Apple accused Samsung of copying the look and feel of its iPhone and iPad devices, including its iconic round edges, colorful icon grid, and overall user interface design.
- Trademark Infringement: Apple also accused Samsung of using its trademarked logos and icons, such as the iTunes logo and Apple’s app store logo, without permission.
- Patent Infringement: In addition to the above claims, Apple accused Samsung of infringing its patents related to various aspects of smartphone and tablet technology, including the design and functionality of its devices.
Samsung denied any infringement of Apple’s patents. And so, the battle between the two tech giants began.
The Legal Tussle Between Giants: Who Won?
The legal dispute between Apple and Samsung started in 2011 and spread globally. By 2012, the two companies were involved in over 50 lawsuits worldwide, with both sides claiming billions of dollars in damages.
The court ultimately ruled in favor of Apple, acknowledging their valid concerns about copying their product. As a result, Samsung was ordered to pay Apple $1 billion in compensation.
Despite this outcome, the legal battles between the two tech giants continued. Samsung publicly criticized Apple and filed lawsuits accusing them of violating their patents and policies. The companies fought fiercely, incurring millions of dollars in damages on each side as they sought to prove their claims.
Conclusion
The relationship between Apple and Samsung started as a cooperative one, with Samsung supplying electronic components to Apple for billions of dollars. However, things changed when Samsung introduced its Android-powered Galaxy series smartphones in 2009. Apple’s former CEO, Steve Jobs, accused Samsung of copying the iPhone, leading to a series of lawsuits by Apple.
The legal tussle between the two tech giants lasted for years and resulted in numerous court cases. The court ruled in favor of Apple, acknowledging their concerns about product copying by Samsung. This led to Samsung being ordered to pay Apple $1 billion in compensation. Today, the two tech giants are considered “frenemies.”
