Samsung

As the retrial to settle the damages in the Apple vs Samsung patents case reaches its closing arguments, Samsung’s lawyer Bill Price accused Apple attorney Harold McElhinny of a racist remark, asking for a mistrial to be declared, reports Bloomberg.

Harold McElhinny, Apple’s attorney, spoke yesterday of his memory as a child of watching television on American-made sets, and how because the manufacturers didn’t protect their intellectual property their products no longer exist. “We all know what happened,” he said at the conclusion of a damages retrial […]

McElhinny was “appealing to race,” Price told the judge. “I thought we were past that.” … 
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Total revenue from all Android tablets combined has for the first time exceeded Apple’s revenue for its iPad sales, according to IDC data crunched by Morgan Stanley’s Katy Huberty.

“For the first time,” she wrote in a note to clients Friday, “Android devices accounted for a greater share of the market in revenue terms than iOS. Android revenue share reached 46.2% in 3Q13, for the first time exceeding iPad share of 45.6%. Android’s unit share grew to 66.7% from 58.5% a year ago, largely driven by Samsung and Lenovo, while iPad share declined to 29.7% from 40.2%” … 
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Phil Schiller’s real testimony in the Apple v. Samsung damages trial will come later today, but he put the importance of the iPhone into perspective in his opening remarks yesterday by stating that Apple “bet the company” on it (via CNET).

There were huge risks [with the first iPhone]. We had a saying inside the company that it was a ‘bet-the-company’ product […] We were starting to do well again in iPod […] Then here we’re going to invest all these resources, financial as well as people, in creating this product … 
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After a judge in March invalidated almost half of the $1B verdict Apple won in its patent infringement case against Samsung in August of 2012, another trial would have to take place to determine how much Samsung would actually owe. It still owes Apple the other approximately $600 million in damages pending an appeal, but today the two companies are in court for a retrial to determine how much of the other roughly $400 million in damages Samsung will be responsible for. CNET reports that Apple’s attorney today told the court it wants $380 million in damages from Samsung, slightly less than the original $410 million in vacated damages:

“We will hear a lot from Samsung, saying no one would have purchased Apple products,” McElhinny said. “But in its heart, Samsung knew it was a two-horse race.”

He pointed to an internal Samsung document as “conclusive evidence Apple lost sales because of Samsung.”

“In a fair fight, that money should have gone to Apple,” McElhinny said.

The $380 million number comes from Apple’s calculations of around $114 million in lost profits, $231 in Samsung’s profits, and $35 million in royalties. Apple says Samsung made around $3.5 billion revenue selling 10.7 million infringing devices.
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The headline news in the latest IDC stats might look like bad news for Apple: iOS Q3 market share dropped from 14.4 percent last year to 12.9 percent this year. But it’s a number that is unlikely to lead to too many sleepless nights in Cupertino, for four reasons.

First, Apple isn’t competing with most of the Android market, which spans all price-points, only the top end of it. Samsung has been struggling to make money from its flagship handsets, with most of its profits coming from low-end models, while HTC has been in all kinds of trouble. Looking at Apple’s market share in the smartphone market as a whole is the most academic of exercises.

Second, while market share is down, shipments are up: from 26.9M in Q3 last year to 33.8M in the same quarter this year.

Third, for most of Q3 savvy iPhone buyers were holding fire, waiting for the new models Apple launched almost at the end of that quarter. The iPhone 5s and 5c between them notched up a record 9M sales in just the opening weekend. Q4 is where it’s really at … 
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Suggestions that Apple is looking to chipmaker GlobalFoundries to reduce its reliance on Samsung chips are rather wide of the mark, according to sources cited by AllThingsD. The rumors followed a story in the Albany Times Union that Apple might be looking to the Malta, New York, chipmaker to make iPhone and iPad chips.

In the most likely scenario, Samsung will still be the primary manufacturer of Apple’s chips for the iPhone and iPad, they said, continuing the role it has played since the earliest days of the iPhone: Building the chips that Apple designs under contract […]

Samsung will use GlobalFoundries for what is known as “flex capacity.” This is a long-standing industry practice under which a chip manufacturer pays to occasionally use another company’s factories when demand on their own factory is running higher than they would like, and they need a little help … 
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Apple’s share of the U.S. smartphone market grew by 0.7 percent in the last quarter to reach 40.6 percent, according to comScore data.

Sales of low-cost handsets mean that Android’s position as leading mobile platform is safe, with a marginal drop to 51.8 percent of the market, but Apple remained top of the vendor rankings …

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Update: See bottom of the piece for JD Power’s partial explanation

“Samsung Ranks Highest in Owner Satisfaction with Tablet Devices” was the headline on JD Power’s latest U.S. Tablet Satisfaction Survey, with the above table showing that Samsung taking the lead from Apple by two points.

Yet when you look at the ratings that make up the individual scores, as Fortune did, that isn’t what they show at all. The six scoring categories are Overall Satisfaction, Performance, Ease of Use, Physical Design, Tablet Features and Cost. Samsung beats Apple in exactly one of those categories: cost … 
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Following several reports this month and hints from Tim Cook that Retina iPad mini stock could be in short supply when the device launches next month, the hit and miss DigiTimes reports today that the shortages are due to limited supply of displays from Apple’s supplier Sharp. Specifically, the report claims that Sharp’s “Oxide TFT process is seeing low yield rates” leading to a less than ideal supply of  7.9-inch Retina panels. Sharp accounts for around 40% of the displays for iPad mini with Retina display production, while LG Display is providing the other approximately 60%, according to the report:
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One of the many Apple Television concepts out there (image: theverge.com)

Among the less likely of the many rumors surrounding  Apple’s long-expected move into full televisions is one reported in Bloomberg today, suggesting that Apple will launch 55- and 65-inch 4K televisions in the final quarter of 2014 with pricing in the $1500 to $2500 range.

Masahiko Ishino, an analyst at Advanced Research Japan Co, claims the displays will be made by LG, the GPUs by Samsung and the frameless glass cover made from Corning Gorilla Glass 3, with Foxconn assembling the products … 
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Update: The app is now live on the App Store.

After the BBM apps prematurely started rolling out for iPhone and Android and were abruptly pulled late last month, BlackBerry finally confirmed today that it’s officially kicking off the roll out of the apps. In a blog post, the company announced that the BBM apps will be available for both iPhone and Android within the next few hours through the App Store, Google Play, and Samsung’s App Store:

The demand for BBM on Android and BBM on iPhone continues to be amazing. About six million people signed up for information about BBM at BBM.com. As you know, in just seven hours, about one million Android users were using the unreleased version of BBM for Android. What you don’t know is that more than one million people have found creative ways to “side load” BBM on their iPhone. This is incredible.

While the app is available to download starting today, it will utilize a staggered rollout that will see users reserving a spot in line by entering their email address. BlackBerry says users that signed up previously through its website can start using the app immediately, but we’ll have to wait to see how many people sign up today in order to estimate how long the queue will be. 
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iOS 7 has taken top billing in Pfeiffer Consulting’s annual Mobile OS User Experience Benchmarks, scoring just over 73 percent against 57 percent for Android and 47 percent for Windows Phone.

The study attempts to calculate an objective rating for the usability of a mobile OS by a typical, non-technical user by measuring four elements:

• Cognitive load
• Efficiency
• Customization
• User experience friction … 
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With a U.S. import ban previously issued by the ITC set to lock out certain Samsung devices at midnight last night, Bloomberg reports that the company has failed to obtain a veto from President Barack Obama:

The Korean company had argued that the ban should be overturned on public policy grounds, especially since a similar order it won against Apple was vetoed by the administration in August. Samsung can now seek a delay in the ban from a U.S. appeals court that will consider the entire case on legal grounds.

“After carefully weighing policy considerations, including the impact on consumers and competition, advice from agencies, and information from interested parties, I have decided to allow” the import ban to proceed, Obama’s designee, U.S. Trade Representative Michael Froman, said in a statement today.

In August, the US International Trade Commission ruled in favor of Apple and issued a sales ban on certain infringing Samsung devices in a long-running case that stemmed from a countersuit originally filed by Apple back in 2011. The news came shortly after the Obama administration’s decision to veto an ITC import ban on certain iPhone and iPad models that Samsung won in a separate case. Like Apple, Samsung was going to attempt to get a veto on the decision by the US President, the only person with the power to overturn ITC import bans. 
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The iPhone has long been the best-selling phone on AT&T, but the Samsung Galaxy S4 has for some time held that slot at Verizon, Sprint and T-Mobile, with the iPhone 5 in second place. No more. September sales figures from Canaccord (reported in Fortune) show that the iPhone 5s now has top billing on all four major U.S. carriers, with the iPhone 5c also beating Samsung on AT&T and Sprint. While the news isn’t unexpected, the numbers do seem to put the lie to one rumor … 
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Actual court drawing of Forstall (<a href="http://www.reuters.com/article/slideshow?articleId=USBRE87906V20120810&slide=1#a=1">not a joke</a>)

We’re set to get a blast from the past on November 12th when ex-Apple SVP of iOS Scott Forstall is likely to come out of hiding to testify at the Samsung damages hearing alongside his once colleague Phil Schiller.

On Friday, the two sides filed a joint pretrial statement and lists of potential witnesses they may call. Apple’s list includes Phil Schiller, the company’s senior vice president of worldwide product marketing, and Scott Forstall, the former senior vice president of iOS software. Forstall’s departure was announced last October following the widely criticized launch of Apple Maps, which some observers said may have led to his firing. Both Schiller and Forstall also testified in the original trial.

Rounding out Apple’s lineup, Susan Kare, who designed the original Mac icons is also on the docket. Apple won an over $1B verdict in the initial trial but the amount was subsequently dropped to $400M by Judge Lucy Koh.

Forstall has been out of the public spotlight since his removal by CEO Tim Cook in October of last year.
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