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In: Operations Management

Samsung and Apple have a very complicated relationship. They are bitter rivals in the smart phone...

Samsung and Apple have a very complicated relationship. They are bitter rivals in the smart phone market, yet Samsung has also been a key supplier to Apple in the past.

The two companies are also involved in long running litigation over patent infringements.

How would you explain the relationship between these two behemoth companies?

Solutions

Expert Solution

A very complicated and a kind of Love-Hate relationship exists between Samsung and Apple. It has been seen first when apple sued Samsung in the year 2011 in US for copying some features of I phone which was followed by case filed by Samsung on Apple for patent Infringement. Not only this, there is more than 40 lawsuits filled by both companies against each other in the last few years. It shows that open rivalry while on the other hand both companies also working as supply chain partners and are important part playing in supporting each other. Samsung is one of the biggest supplier to Apple for A9 Chipsets which is used in Apple iPhone 6 & 7. According to some famous reports, almost 40% of A9 chipsets used by IPhone in their handsets are of Samsung.

Thus, despite of all courtrooms fights and cases, both companies are important for each other which is showing their Love-Hate relationship. Apple is an important customer of Samsung by selling a fair number of A9 Chipsets to Apple and keeping their business relations insulated from the rivalry.  

keosha answered 9 months ago
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