Money Matters - Simplified

Apple Vs. Samsung: Is Samsung gaining an edge over Apple?

It's a straight showdown between the two tech giants, Apple Inc. and Samsung Electronics Co Ltd. The "once upon a time partners" are involved in the legal battles all over the globe.

It's beyond the wildest dreams of Steve Jobs that an Asian company with a stark similarity to the Apple's gadgets is winning an edge over its products. The market today is all about Samsung Electronics Co Ltd and Apple Inc and other who are trying to breathe in the ever competitive market of tech gadgets and consumer electronics.

Steve Jobs had a slicker better plan to answer the cloning of it's niche products, a "thermo-nuclear" legal battle that would keep the copies away from the market. But two years later when after they won the patent-infringement lawsuit against Samsung, and six months later, where they emerged as a winner, Apple Inc., is having a relatively tough time to save face against the South Korean rival.

Apple and Samsung's partnership in the manufacturing of iPhones
Apple and Samsung shared partnerships circa 2005, when the former was looking for a stable and financially strong supplier of flash memory. Reason being, it decided to innovate the model of iPod shuffle, iPod nano and the iPhones, to jettison the hard disc drive which required the huge number of flash drives.

During those times, where the market was fluctuating and there were not many stable contributors, Samsung held almost 50 percent share of NAND flash memory.

A source familiar with the program, quoted Jobs saying, "Whoever controls flash is going to control this space in consumer electronics."

Apple looking for other suppliers
The partnership of the two tech giants was a success and they went on to maintain cordial relations with manufacturing delicate application processors based on a design from ARM Holdings Plc, until Apple took the control of development of the chip and Samsung was limited to the processors development.

This partnership gave an insight into each other's companies and policies for both the partners. Where Tim cook, now successor of Steve Jobs was opposed to the idea of suing Samsung, Steve could not take it any longer and filed the suit in year 2011.

Though the legal masters deem it as more dramatic as it could be in the business terms, but it is clearly evident that their relationship has come to a halt. Apple reportedly is looking for options like switching to TSMC for the development of application processors