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Apple And Samsung – Allies And Enemies Both

We have been covering the Apple vs Samsung legal war for some time and we stated time and again that it’s strange that two tech giants, who greatly depend on each other for their overall growth, are also at the same time engaged in legal battles. Especially with Samsung supplying the A5 chip and other key components for iPhone 4, Apple greatly depends on the former for it’s products. Given below is a teardown analysis of what percentage of iPhone 4 does Samsung contribute.

A bumpy ride for Apple and Samsung:
Samsung is one of the largest suppliers of the components that make up iPhone 4. The interesting thing is Apple and Samsung continue to be locked in a legal brawl. Apple sued Samsung for stealing the design of it’s iPad tablet. After a rather prolonged legal battle in Europe, Apple was finally able to successfully have Samsung Galaxy Tab banned in Europe. Samsung resorted by redesigning the device and then counter-suing Apple over a number of other injunctions.

What is interesting is that while all this continues, Samsung and Apple continue to be in a very healthy trade-relationship. We even reported a while ago that the manufacturing of A5 chips within US for iPhone 4 and iPad are being done in a Samsung-owned factory.

What’s interesting about the tear down analysis provided above is that while Apple ships most of it’s components from others and they are assembled by Foxcon, Apple itself concentrates on the design and configuration of devices. But at the same time, Apple receives the major share of the devices’ overall price, making it’s business model a very profitable and very successful one. And no wonder this asks for a continued relationship with Samsung, come what may.

Image courtesy IHS iSuppli.
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