Competition in the Marketplace and Courtroom

Galaxy S3
Galaxy S3

Apple’s at it again…Suing Samsung to have the new Galaxy S3 blocked in the United States. And Samsung has promised to fight it. Who is actually winning this war is difficult to say. In terms of market share, Android is winning, and Samsung devices makes up the lion’s of Android devices. In terms of profits, Apple is winning with huge amounts of cash and soaring stock prices. Apple’s love-hate relationship with Samsung is also tricky. Samsung is Apple’s largest supplier for components for it’s devices. So while Apple is buying stuff from Samsung, it doesn’t want Samsung to compete with them on the front lines.

Samsung is being forced to innovate more than ever to gain usability edges and attract buyers, and it has. The Galaxy S3 is slick — really slick. It’s even having launch parties and lines of people waiting to get one. Such enthusiasm typically characterizes Apple fanboys and I could see why Apple feels threatened by it. The iPhone is (more or less) the same old thing it’s always been. The changes are iterative and lots of the new features are ho-hum. But Apple enthusiasm is still strong.

All this to say: is Apple going on the defensive? It’s difficult to say. And with Microsoft upping the ante this fall with Windows 8, things are likely only to get nastier….


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