Samsung may try to block Apple's iPhone 5 from launching in the U.S. and Europe, according to Jefferies & Company, which said the two companies' relationship has grown increasingly rocky.
The situation between frenemies Samsung and Apple
(NASDAQ:AAPL) is looking increasingly dire, which could lead to Samsung seeking
to block the launch of the iPhone 5 in the U.S. and Europe, according to an
In what is
easily the most anticipated smartphone launch of the year, Apple is expected to unveil the iPhone 5 later today,
possibly making it available exclusively on Sprint at first.
the A5 processor that powers the iPad 2 and iPhone 5, and supplies display
technology for those devices. Yet Samsung and Apple have had a legal falling out
in the mobile space that coincides with each company's rise to power in the
has sold over 128 million units worldwide. Samsung has shipped tens of millions
of smartphones based on Google's (NASDAQ:GOOG) Android operating system,
helping that platform reach 40 percent market share, roughly double that of the
Samsung's roll, Apple in 2010 sued the OEM for patent infringement, claiming
the company uses its software patents in its Galaxy S smartphones and Galaxy
Tab tablet computers. Samsung countersued for patent infringement.
companies' current legal climate, Jefferies & Co. analyst Peter Misek said
Samsung might ask for injunctions preventing the launches of the iPhone 5 in
the U.S. and Europe. Apple may then in turn seek to tap other OEMs for
components for its leading mobile devices.
Misek said the
"relationship is souring" because Samsung has emerged as Apple's top
handset rival in the global market.
has shipped over 10 million Galaxy S II smartphones without the benefit of a
major launch in the U.S. This competitive angle, and the corresponding patent-infringement
lawsuits between the companies, has led Apple to seek other suppliers of
consumer electronics components.
Samsung last week struck a cross-licensing deal with Apple
rival Microsoft (NASDAQ:MSFT). Samsung will not only pay a fee for
each Android smartphone and tablet it sells, but it will work with Microsoft to
build and market Windows Phone handsets.
believe Samsung wants to dual source its OS, and Microsoft now appears to have
lined up the two largest handset OEMs [Samsung and HTC] to be major backers of
its OS, which almost assures it of being the third major smartphone OS that the
carriers desire," Misek wrote in a research note Oct. 4.
currently uses Samsung's A5 processor for its iPad and iPhone 5, Misek believes
GlobalFoundries or TSMC could make an application processor for next-generation
iPhones and iPads. As for iPhone and iPad displays, Apple could turn to LG
Display and Sharp for production.
It is not yet
clear when the iPhone 5 would be available in the U.S. or overseas, though if
Samsung were to successfully win an injunction, it would create a huge
disturbance in a market where millions of consumers are expecting to purchase
an iPhone 5 for the holiday season.
call this justice. Apple has so successfully blocked Samsung's Galaxy Tab 10.1
from launching in Australia. Samsung is mulling over scrapping its plans to
sell the Tab 10.1 Down Under, according toBloomberg Businessweek.