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Tim Cook Refused to Sue Samsung, Overruled by Steve Jobs

By - Source: Reuters | B 27 comments

Cook didn't want to tamper relationship due to its competitors' parts required for iOS devices.

Current Apple CEO Tim Cook is said to have refused to sue the firm's chief competitor, Samsung, but he was overruled by the late Apple co-founder Steve Jobs.

Cook, who succeeded Jobs as chief executive after seven years as the firm's chief operating officer, objected to a lawsuit against Samsung, as the South Korean technology company supplied components for Apple's iPhone and iPad, according to Reuters' sources. The former was the only company who could meet Apple's demands in a set amount of time.

Apple is believed to have paid Samsung $8 billion last year to purchase chips and screens for the two aforementioned iOS devices. Following a deal related to flash memory in 2005, both technology titans formed a close relationship, which saw the grandson of Samsung's founder visiting Jobs at his home in California. Apparently, the partnership gave each company an insight into its operations.

However, following the launch of the Galaxy S in 2010, both Jobs and Cook complained to Samsung executives regarding the smartphone's look; Apple expected it to modify its design. Believing that Samsung was dependent on its position as a key components supplier to protect itself from legal repercussions, Jobs retaliated when Samsung launched the Galaxy Tab in 2011.

Apple filed a patent infringement lawsuit against the company during  April 2011 in order to ban several Samsung devices in the U.S. It culminated in a $1.05 billion court case win for the iPhone maker, but Apple ultimately failed in its effort to apply sales bans. The latter had its request to triple said amount denied as the judge ruled that Samsung didn't willingly infringe on its competitor's patents. That said, the judge denied Samsung's request for a new trial related to the August ruling. Both companies will now face each other in court for another mega trial during March 2014.

Elsewhere, amid reports that Apple is starting to look at alternatives for chip production, the South Korean manufacturer is planning to diversify its chip business.

 

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  • 40 Hide
    capt_taco , February 11, 2013 6:40 PM
    Apple: "Hello, Samsung? We need parts for our iPhones."
    Samsung: "OK, that'll be $7 billion please."
    Apple: "By the way, we're suing you for a billion dollars."
    Samsung: (pause) ... "But you still want the parts?"
    Apple: "Yes."
    Samsung: "OK, that'll be $8 billion please."

  • 27 Hide
    derekullo , February 11, 2013 5:50 PM
    Apple pays Samsung to make parts for iPhone.

    Apple patents smart phones.

    Samsung makes smart phone for itself.

    Apple sues Samsung for trying to cut into business.
  • 27 Hide
    freggo , February 11, 2013 6:26 PM
    The lawsuit was a PR victory for Samsung as Apple basically told the world that they welt the Samsung phones are serious competition; i.e. as good -if not better- than an iPhone.

    Seeing what this tech companies budget in PR funds that Billion may have been well worth it; and prob. has not even been paid yet anyway.
Other Comments
  • 6 Hide
    dozerman , February 11, 2013 5:50 PM
    Assuming this story is true (and there is really no way to confirm that it is), I would have to say that I have slightly more respect for Apple now.
  • 27 Hide
    derekullo , February 11, 2013 5:50 PM
    Apple pays Samsung to make parts for iPhone.

    Apple patents smart phones.

    Samsung makes smart phone for itself.

    Apple sues Samsung for trying to cut into business.
  • 23 Hide
    esrever , February 11, 2013 6:01 PM
    So pin the blame on the dead guy?
  • 24 Hide
    Thunderfox , February 11, 2013 6:23 PM
    esreverSo pin the blame on the dead guy?

    If the donkey tail fits...
  • 27 Hide
    freggo , February 11, 2013 6:26 PM
    The lawsuit was a PR victory for Samsung as Apple basically told the world that they welt the Samsung phones are serious competition; i.e. as good -if not better- than an iPhone.

    Seeing what this tech companies budget in PR funds that Billion may have been well worth it; and prob. has not even been paid yet anyway.
  • 20 Hide
    house70 , February 11, 2013 6:29 PM
    Even if this is true, Cook had enough time to drop this BS. He didn't, so he's as much to blame as his predecessor.
    victoroliviaspam taken out

    Zak's articles are the most spammed. I guess no filter for spam is OK in his opinion.
  • 40 Hide
    capt_taco , February 11, 2013 6:40 PM
    Apple: "Hello, Samsung? We need parts for our iPhones."
    Samsung: "OK, that'll be $7 billion please."
    Apple: "By the way, we're suing you for a billion dollars."
    Samsung: (pause) ... "But you still want the parts?"
    Apple: "Yes."
    Samsung: "OK, that'll be $8 billion please."

  • -3 Hide
    WyomingKnott , February 11, 2013 7:01 PM
    Quote:
    Even if this is true, Cook had enough time to drop this BS. He didn't, so he's as much to blame as his predecessor.

    Zak's articles are the most spammed. I guess no filter for spam is OK in his opinion.

    The author doesn't filter spam. Maybe Zak has the most popular articles, so they are the most efficient place to go spamming?
  • 12 Hide
    ikyung , February 11, 2013 7:28 PM
    AndrewMDSince Samsung had so much insight into what went into an Apple product at the time, Samsung entering the smartphone business was a mistake they took. Actually, I doubt Apple would have sued them if their phones did not look like an Apple product to begin with.This reminds me about Hyundai's entry into the entry-level luxury market with their first Almati, it was then during the German auto show a Mercedes's rep commented thinking that Mercedes completed their showing of new cars only to be shocked that Hyundai copied their iconic front-end design for their own car. It seems that Asians have an issue creating a unique product to wow the world, only know how to copy an existing product....

    So you use two examples within a single time period to exemplify an entire race of people. The way technology works is it evolves horizontally as well as vertically. Innovation and iteration. So.. since China built the first cannon dating back more then a hundred years before Europe, does that mean any device that uses gun powder to shoot projectiles are copies? No it doesn't. Because cannons built in Europe were more efficient, accurate, and powerful. They took an idea and functionality of something that already existed and made it better. That is called iterating.

    Samsung already stated in an interview that they let the market drive them unlike Apple's philosophy of they drive the market because consumers don't know what they want. So when the smartphone market was established, Samsung took an existing product and added things that Apple didn't offer. Like SD card slots, removable batteries, Android OS, bigger screens, etc. Of course back in 2010 when Galaxy S first launched, it wasn't as popular. The reason for it was the masses didn't really understand what a Smartphone was capable of so they wanted something easy that just made calls, texts, etc. As the market matures, so does the consumers of the market. They started looking for more features which is why the S2 and S3 became more popular.
  • -6 Hide
    A Bad Day , February 11, 2013 7:56 PM
    One does not simply screw with Mr. Jobs.

    One of the previous suppliers back in Apple's early years was bold enough to tell him that they will delay shipments whenever they like because there was nothing in the contract prohibiting it.

    He immediately broke the contract and ate a lawsuit from the supplier to set an example of his intolerance of BS towards him.
  • 10 Hide
    kshong , February 11, 2013 8:07 PM
    AndrewMDSince Samsung had so much insight into what went into an Apple product at the time, Samsung entering the smartphone business was a mistake they took. Actually, I doubt Apple would have sued them if their phones did not look like an Apple product to begin with.This reminds me about Hyundai's entry into the entry-level luxury market with their first Almati, it was then during the German auto show a Mercedes's rep commented thinking that Mercedes completed their showing of new cars only to be shocked that Hyundai copied their iconic front-end design for their own car. It seems that Asians have an issue creating a unique product to wow the world, only know how to copy an existing product....


    You are one ignorant person.
  • 5 Hide
    ven1ger , February 11, 2013 8:49 PM
    AndrewMDSince Samsung had so much insight into what went into an Apple product at the time, Samsung entering the smartphone business was a mistake they took. Actually, I doubt Apple would have sued them if their phones did not look like an Apple product to begin with.This reminds me about Hyundai's entry into the entry-level luxury market with their first Almati, it was then during the German auto show a Mercedes's rep commented thinking that Mercedes completed their showing of new cars only to be shocked that Hyundai copied their iconic front-end design for their own car. It seems that Asians have an issue creating a unique product to wow the world, only know how to copy an existing product....


    Showing some racist tendencies there.

    Before espousing over what Asians are copying as you seem to be asserting let's not forget where a lot of current arts, culture, food, and technology came from. Many of the things you are enjoying today and taking for granted were invented or originally developed in the East before patent laws ever existed.

    Getting back to this century, what phones did Apple have before the Iphone? Samsung was already in the business of creating cellphones and it's a natural evolution into developing smartphones.
  • 7 Hide
    downhill911 , February 11, 2013 9:03 PM
    Tim Cook is said to have refused to sue the firm's chief competitor, Samsung, but he was overruled by the late Apple co-founder Steve Jobs.........sadly now is too late to fix bad Apple's image.
  • 2 Hide
    Anonymous , February 11, 2013 9:14 PM
    So....Samsung did to Apple what Apple did to Xerox and MS did to Apple...Lawls!
  • 7 Hide
    Anonymous , February 11, 2013 11:39 PM
    Apple has sued almost every single Android phone makers. The "thermonuclear war" is not targeted at Samsung alone. Apple essentially wanted Samsung to stop making Android phone as Steve Job thought Android is a "stolen product". But Apple is too gutless to sue Google itself, knowing that they have failed to sue Microsoft in the past. So they picked on other companies. As for the basis of the patents, they are silly to the extreme. And it is indeed an eye opener to see what can be patented today.

    Also, while Steve Job is a great person who has brings a few great devices to the market, he is also at the same time shackled Apple and limited what it can or cannot do. Steve Job has claimed that a stylus on a tablet is a failure, and 7" tablets are useless. This essentially prevented Apple from selling a iPad with digitizer, and caused Apple to create the smaller iPad way later compared to the competition, despite there are obviously a market for both of these. This essentially give their competitors a good headstart in these market segments.

  • 2 Hide
    house70 , February 11, 2013 11:42 PM
    WyomingKnottThe author doesn't filter spam. Maybe Zak has the most popular articles, so they are the most efficient place to go spamming?

    That's the issue; there is no spam filter in place. There are a few websites that keep appearing in these spam messages, even if there are multiple usernames involved. Filtering out the posts that contain these few web addresses should be easy for a tech site. Each time a new address pops up and gets reported by us (believe me, they do get reported), they can just ad it to the blacklist.
    There is no excuse for the absence of such a filter. It has been suggested multiple times in the past.
    Finally, popularity of an article is no excuse for the lack of filtering.
  • 2 Hide
    Cons29 , February 11, 2013 11:42 PM
    whoa, racist comment. Do not generalize based on a single person (or group, whatever) actions.
    Do we hate Americans because of apple? then why the comment about Asians?
    each and every race have bad apples among them.

    back to topic, so now that Jobs is gone, what, no balls mr Cook? do something, step up
  • 3 Hide
    keither5150 , February 12, 2013 12:01 AM
    "Apple expected Samsung to modify it's design after the Galaxy S"..... they did, they made the S2 which is bigger and better. They continue to make their phones bigger and better. While Apple...... not so much. I can see the majority of phones being 4.8 to 6 inches within a year. I am shocked at how comfortable the Note 2 feels.

    Why doesn't Apple sue Google. Jobs had a problem with Android more so than Samsung. Steve was just pissed that Samsung made better products. Samsung spends a lot on advertising and gets plenty of it for free from Apple. Samsung should at least say thanks to Apple. Best billion ever spent..... but not paid.... probably never be paid...... Samsung could just raise the prices of the parts and there's your billion.
    Fruitless really.
  • 0 Hide
    noob2222 , February 12, 2013 12:17 AM
    So is steve jobs to blame still for the 2014 lawsuit? Rofl, I wonder if steve jobs is filing that lawsuit also with his spiritual medium.
  • 2 Hide
    Solandri , February 12, 2013 1:10 AM
    derekulloApple pays Samsung to make parts for iPhone.
    Apple patents smart phones.
    Samsung makes smart phone for itself.
    Apple sues Samsung for trying to cut into business.

    #3 on your list actually belongs in the #1 position. Smartphones existed long before the iPhone, and Samsung was one of those early smartphone manufacturers. If anything, Apple leveraged Samsung's expertise and experience in making smartphone components by using them as a supplier for the iPhone.

    Go ahead, browse the PDA/smartphone history before 2007. (And likely anything released in early 2007 was designed pre-iPhone despite being after the iPhone's public announce date.)
    http://pdadb.net/index.php?m=pdahistory
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