Samsung

A report out of DigiTimes this morning claims that TSMC has reached a deal with Apple to supply 20nm, 16nm and 10nm chips for future Apple devices. However, as is often the case with DigiTimes, there are a few causes for concern surrounding the report. Leaving the site’s track record on other rumors aside, we must point out that rumors of TSMC supplying chips for Apple’s device are nothing new. In fact, DigiTimes itself reported back in 2011 that Apple would tap the Taiwan Semiconductor Manufacturing Company in a move away from its long-time supplier and biggest rival Samsung. Needless to say, it hasn’t happened yet, and there’s no proof as of yet to back up follow up reports from last year claiming Apple entered an agreement with the company. DigiTimes isn’t even the first to report it this year:
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ComScore today reported its numbers for smartphone subscribers in the U.S. for the three month period ending in April with Apple experiencing the biggest gains in both categories. The main theme of the report is much the same as we heard in its January and February reports– Apple is up and gaining at the expense of Google and just about everyone else.

When it comes to market share by platform, comScore reports that Google continues its lead with 52.3% (down 0.3 percent since the January quarter), while Apple experienced a slight gain of 1.4 percentage points increasing from 37.8% to 39.2%. That’s compared to BlackBerry at just 5.1% (down from 5.9% last quarter) and 3.0% for Microsoft (down from 3.1%).

Apple also captured the biggest gain for smartphone subscribers by OEM, positioning itself as the No.1 smartphone vendor in the U.S. with 39.2% of the market compared to Samsung’s 22% during the three month period. Filling out the final three positions is HTC, Motorola, and LG:
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Earlier this month we noted that Apple was asking courts to add the Galaxy S4 as an infringing device in its ongoing patent dispute with Samsung in California. Now, Apple has officially filed a motion (via FossPatents) outlining five patents infringed by the Galaxy S4 and another two Siri related patents infringed by the device’s Google Now voice controlled search feature.

Apple had previously claimed that the Android Google search box feature on Samsung devices infringed the same patents, but is now moving to have Google Now included alongside the S4. Excerpt from Apple’s filing below:
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Update: Apple provided the following comment to AllThingsD on the approval:

“With iPhone and iPad being tested or deployed in almost every Fortune 500 company, Apple continues to scale across enterprise with nearly 30,000 companies globally developing and distributing iOS apps for corporate use by their employees,” Apple spokeswoman Trudy Muller told AllThingsD. “The FIPS 140-2 certification and STIG approval demonstrate our ongoing commitment to deliver a secure platform to our enterprise and government customers around the world who deploy iOS devices on their networks.”

Following reports earlier this month that the Defense Department was in the process of approving iOS 6 for nonclassified communications and widespread use by government agencies, Bloomberg reports today that Apple has officially been granted approval for use on U.S. military networks.

The Pentagon already approved Samsung devices powered by the company’s Knox security software and BB10 ahead of today’s approval of iOS 6.

In February the US Defense Department confirmed plans to open its networks to 100,000 new devices from Apple and Google by February of next year. At that time the Pentagon said its networks had about 470,000 BlackBerrys, 41,000 Apple products, and 8,700 Android devices.

A number of U.S. agencies switched from BlackBerry to iPhones over the last year, while earlier reports indicate Samsung is attempting to attract more government and corporate customers with a new team of security experts and former RIM employees as well as a water and dust proof variant of its flagship S4 dubbed the Galaxy S4 Active. Today’s security approval will increase the number of agencies allowed to deploy iPhone and iPads on government networks for nonclassified communications.

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Research firm IDC is out with its latest numbers for Q1 2013 today tracking worldwide smartphone shipments by OS and OEM noting Android and iOS combined accounted for 92.3% of all shipments during the quarter.

IDC noted that Apple and Android  shipments combined increased year over year approximately 59.1% with a total of 199.5 million units shipped worldwide during Q1. That’s up from just 125.4 million a year ago. Apple is clearly a large driver of the growth with the report pointing out that iPhone had its “largest ever first quarter volume.” However, despite that, Apple also saw a decline among usage of iOS compared to growth of the industry as a whole, allowing Android to keep its top spot by OS and Samsung to remain number 1 by OEM.

How far is iOS behind Android? According to IDC it accounted for 17.3% of the market in Q1 compared to 75% for Android. Of course this is likely taking shipments (not sales) into account and also doesn’t represent tablet usage that we know iOS continues to dominate. 
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In its ongoing second major patent trial against Samsung, Apple yesterday filed a statement with the US District Court in California claiming that after examining the recently released Galaxy S4 it has “concluded that it is an infringing device and accordingly intends to move for leave to add the Galaxy S4” to its long list of 22 infringing products. Apple is hoping Judge Lucy Koh allows the S4 to be added, but in line with the court’s request to reduce the number of infringing devices ahead of a trial scheduled for spring 2014, Apple has also agreed to remove without prejudice one of the other 22 infringing devices from Samsung it currently has listed.

Apple’s current list of infringing Samsung products include Admire, Captivate Glide, Conquer 4G, Dart, Exhibit II 4G, Galaxy Nexus, Galaxy Note, Galaxy Note 10.1, Galaxy Note II, Galaxy Player 4.0, Galaxy Player 5.0, Galaxy Rugby Pro, Galaxy SII, Galaxy SII Epic 4G Touch, Galaxy SII Skyrocket, Galaxy S III, Galaxy Tab 7.0 Plus, Galaxy Tab 8.9, Galaxy Tab 2 10, Illusion, and Stratosphere.

The filing also highlights a disagreement in which Samsung believes each carrier variant of a specific device should be counted separately. For example, “the Galaxy Nexus activated on Sprint must be counted separately from the Galaxy Nexus activated on Verizon; and the Galaxy Nexus operating on Sprint running Android version 4.0 must be counted separately from the Galaxy Nexus operating on Sprint, but running Android version 4.1.” Apple, however, claims that Samsung has not itself applied this logic:
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http://www.youtube.com/watch?feature=player_embedded&v=DlXp41WwpOs

Some things you’ll never use. We missed these.
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Research firm IDC is out today with preliminary data from its quarterly study tracking worldwide tablet market share putting Apple at 40% market share compared to Android’s 56.5% of the market in Q1 2013. In the year ago quarter, Apple held 58.1% of the market surpassing Android’s 39.4%. IDC says Android shipments were increased thanks to strong growth of Samsung’s smaller sized tablets, while ASUS moved into the number 3 spot with 350.0% year over year growth due to strong demand for the Nexus 7:

ASUS managed to move into the number 3 vendor spot as it continued to see decent tablet shipment demand from the highly marketed Nexus 7 device. But, with Google’s I/O conference right around the corner and expectations of an imminent device refresh, the company will need to find a way to sustain its momentum. Amazon fell to the number 4 position, once again the victim of a highly seasonal product cycle.

Despite Apple taking number two behind Android for tablet shipments by operating system, it remains the top vendor by OEM taking a 39.6% share of the market vs Samsung’s 17.9% and 5.5% for ASUS. IDC notes that Apple actually exceeded expectations for Q1, where it typically experiences a drop off in shipments, by selling 19.5 million units compared to a forecast of 18.7 million:
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Several job postings looking for both hardware and software engineers reveal that Apple is looking to begin its own chip development in Orlando, Florida.

Last week we learned that Apple is hiring software engineers to work on fingerprint technology at Authentec in Melbourne, Florida, which is about one hour south of the future site of the company’s development labs.

The job posting are interesting as Samsung, which works with Apple to develop the custom chips used in iPhones and iPads, continues to compete with Apple in the smartphone and tablet space.

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Apple’s decision to disable VPN on demand functionality on iOS due to the virnetX lawsuit isn’t the only patent related Apple news today. Head below for a roundup of Apple’s court woes and wins from earlier today:

Samsung infringes key text-selection patent: Reuters reports that the International Trade Commission has handed down a preliminary decision ruling Samsung infringed on an Apple patent related to a text-selection feature. However, the courts also ruled Samsung didn’t infringe another patent related to detecting when other devices are plugged into a microphone jack. If the text-selection decision is upheld, the result could be a U.S. import ban on Galaxy, Transform, and Nexus devices:
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Research firm comScore is out with its usual monthly report that ranks the top smartphone OEMs and platforms for the three-month period ending in February. Apple continues to grow its lead this month as top OEM in the U.S., jumping 3.9-percent from November to 38.9-percent of the market and increasing its lead on the second biggest OEM by subscribers, Samsung:

Samsung ranked second with 21.3 percent market share (up 1 percentage point), followed by HTC with 9.3 percent share, Motorola with 8.4 percent and LG with 6.8 percent.

It’s important to point out that the shipped vs. sold argument doesn’t apply to comScore’s results, as its data comes from surveys tracking smartphone subscribers and usage and not sales or units shipped. Google grabs the spot as top smartphone platform at the end of February, but Apple continues to close the gap capturing 38.9-percent of the market (up from 35 percent) compared to Google’s 51.7-percent (down from 53.7-percent):
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Research firm IDC is out today with its latest report on the smart-connected device market, and it includes worldwide shipments of desktop PCs, notebook PCs, smartphones, and tablets. IDC predicted the market in total grew 29.1-percent year over year in 2012, crossing 1 billion units shipped and hitting a total value of $576.9 billion. According to the report, Apple significantly closed the gap on Samsung during the last quarter of the year. It jumped from 15.1-percent in Q3 to 20.3-percent of unit shipments in Q4 2012. That brings the company up right behind market leader Samsung, which dropped slightly from 21.8-percent to 21.2-percent in the fourth quarter:

Looking specifically at the results for the fourth quarter of 2012 (4Q12), combined shipments of desktop PCs, notebook PCs, tablets, and smartphones was nearly 378 million and revenues were more than $168 billion. In terms of market share, Apple significantly closed the gap with market leader Samsung in the quarter, as the combination of Apple’s iPhone 5 and iPad Mini brought Apple up to 20.3% unit shipment share versus 21.2% for Samsung.

Not surprisingly, Apple dominated Samsung when it came to revenue share. It took in 30.7-percent of the market compared to just 20.4-percent for Samsung by revenue:

On a revenue basis for the fourth quarter, Apple continued to dominate with 30.7% share versus 20.4% share for Samsung.

Apple’s increase is likely thanks to strong iPad and iPad mini sales, as growth in the market was “largely driven by 78.4-percent year-over-year growth in tablet shipments.” IDC expected tablet shipments to outgrow desktop PCs by the end of this year, while the tablet market could surpass the portable PC market in 2014 and provide Apple with even more opportunity to outgrow Samsung for total connected smart device shipments this year and next:
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