scribblings about earning trust & influence as a business on the social web

Why it is still a win for Samsung? Apple vs. Samsung Trial Verdict


I will spend my last dying breath if I need to, and I will spend every penny of Apple’s $40 billion in the bank, to right this wrong…I’m going to destroy Android, because it’s a stolen product. I’m willing to go thermonuclear war on this.” – Steve Jobs

 

After a surprisingly short time, the jury in the Apple vs. Samsung case has sent word that it has reached a verdict. The jury ruled overwhelmingly in favor of Apple, and awarded the company more than a billion dollars in damages. If you are like me, it is hard to see an upside for Samsung in all of this — until you come to realize that this could have been just a very smart and a strong strategic play.

Iphone vs. Galaxy S

News outlets and uber popular tech blogs covered the trial live on their respective blogs. The overall majority was shocked to see jury come to a conclusion in such a short time frame. My personal interest in this trial has been not only from patent infringement, media and social science perspectives but also from an user interaction design perspective.

For years, I have worked on and closely observed projects where we focused on making it painless for an user to interact with the system. System in this case is defined by any interface that interacts with the user. The end goal has always been to make the interaction as natural as possible. Afterall, a beautiful user experience dictates a product or service’s success in this day and age. The good enough standard of the past has been raised very high in almost every industry.

The factory era defined the basic user experience while the socially enabled, user centric information era defines and challenges the widely accepted user experience. These days, we are seeing interaction improvements all across the various industries. From commodity services to automotive to new computing interfaces. (Facebook is just plain old social from the early 90′s packaged into a sleek addictive user experience).

Survival of the fittest.

A successful business is one that is nimble and agile enough to understand where the market is moving today and where it will move tomorrow to not only survive but to succeed. Samsung realized this very early in the game that Apple’s design language and interaction had won the race in the mobile market space.  Apple challenged the notion of fixed keys and proved everyone wrong. (Mind you: They weren’t the only ones but they were the first ones to not only improve the touch experience but also bring the experience to the masses in a more unified sense. (Ecosystem, Retail Experience, Packaging, Control, iTunes, etc.))

Instead of waiting around to replicate this natural design interaction, Samsung decided to strategically mimic it. Given the number of handsets they have produced on Google’s Android platform, they have not only capitalized on Apple’s design language but also evolved their own interpretation of it for later handsets that were not even considered in the trial — like the highly successful Samsung Note and Samsung Galaxy S3.

Samsung would’ve been no where if they hadn’t realized this early on. They would be facing the same fate as RIM. Not only did they become the #1 manufacturer’s of smart phones worldwide, they also replaced HTC and took RIM out. In fact, the pricing and positioning of their Android handsets have allowed them to become the alternative to RIM handsets for the masses.

If we recall, Microsoft paid $8 Billion to acquire Skype and they have yet to do something with it. Microsoft’s Windows Phone 7.5 ecosystem failed to penetrate the market while in the mean time, Samsung became the sought after manufacture of mobile devices worldwide. For a mere $1 Billion fine, Samsung is now #1 in the market with worldwide penetration and 2012 handsets command a lead position of their own.

Not too bad at all, unless the judge rules Samsung can’t sell its phones. During the process, the world has learned more about the secretive Apple design processes in greater depth and that wasn’t an easy task for Apple — given their internal culture. This has also opened up gates for Google and Motorola to sue to mitigate against Apple’s 2nd move towards the Android ecosystem. (We all know that Job hated Android and wanted to spend every penny against it).

With that being said, RIM and Nokia along with other Android manufacturers probably wish that they had gambled and copied iPhone like this.

From my interactions with Samsung over the years, I’ve been pleasantly impressed by their scale. Samsung is a much more innovative and nimble firm because it copied the iOS experience. They evolved their go-to-market processes, sales positioning and heck even marketing to compete against the #1 player in the North American market and at a frequency that has only surprised many — including Apple.

  • Wilson Lam

    Great perspective. Samsung isn’t an amateur at this. This was a calculated move.

    • http://www.bilal.ca/ Bilal Jaffery

      Wilson — hope you are correct, looking to see how Samsung reacts to this.

  • http://www.facebook.com/muhammad.assad Assad Niazi

    How can you say that during this process, Apple revealed its internal information and what type of such information would be relevant to the competitors?

    • http://www.bilal.ca/ Bilal Jaffery

      The design process and methodologies were all revealed. I suggest you backtrace the discussions on TheVerge and other blogs that provided court documents, diagrams, figures and more.

  • Frank Opinion

    Honestly, this is as great an example of an article of fudge as you’re likely to encounter. . It is astonishing that the author is trying to convince the world that somehow receiving a court fine of $1bn from the most influential consumer marketplace in the world is an acceptable matter of course as compared to other companies acquisition records (Microsofts purchase of Skype/Win 7.5, relevance?). I am no fan boy of Apple (I use both a Samsung Nexus and iPhone day/day). However, this article is riddled with uneducated assumptions and a liberal sprinkle of sycophancy. The author illustrates very little true understanding of Samsung. Allow me to make clear prior to any robust rebuttal, I worked for Samsung for over 2 years. Allow me to remind the author that two years after iOS first generation was released BADA began in-development. The truth is that Android has been the gift from Google that Samsung had been desperate for. They stumbled across it rather than by any strategic means as the article seems to infer. If anything, I directly recall at the time it was the strategic relationship to Windows CE that was all-important. … I also needn’t remind you that Touch-Wiz, Samsung’s one true attempt at innovating on-screen has been a an utter failure, by commercial or wiki-nomic standards.

    A simple and alternate truth is this. Had Nokia adopted Android when they could have, had Sony had the corporate strength at the time, had RIM or Palm had the foresight (I could go on), Samsung’s position in the mobile space today would be very different indeed. I am not sure how familiar the author is with technical development but it must be said that Apple’s iOS is a masterpiece of an eco-system and Samsung, in their accepted culture of plagiarism attempted to copy parts of it. They got caught, they got punished. Please don’t try to gloss over this crucial truth. This is about software and user experience. I have already read early rather flippant articles quoting the Samsung lawyers quip about curved edges to rectangles trying to make light out of their sorry loss.

    Anyhow .. here’s the rub. This is indeed the BEST thing that has happened to Samsung. Not I should add due to any of the drivel written by the author of the novelty that encouraged by writing but rather this is the kick in the derrière that the Korean giant needs to genuinely innovate, to grasp risk, to put consumers first, to understand that software is a human pursuit and not a complement to hardware revisions.

    • http://www.bilal.ca/ Bilal Jaffery

      I am talking business strategy and nothing more. Samsung was the first one to realize the market changes and capitalized on it. They are still the #1. Case in point, a friend recently shared an update with on Google+ indicating that someone overheard a conversation that discussed people’s astonishment that Samsung’s “iPad” is same as Apple’s “iPad” and now they feel ripped off with Apple pricing.

      ha! I wonder if this continues on…

  • http://www.facebook.com/mwsict Ajarn Steve

    Wow, so basically this author is saying “I do UI design and stuff, but I’ll copy it from the next person if I can… just like my hero Samsung.”

    What tripe.

    The only thing Samsung knows is this: COPY WHILE YOU CAN, and play dirty if you can get away with it.

    • http://www.EarnedWeb.com Bilal Jaffery

      Actually, quite the opposite. I am stating that Samsung was fast enough to recognize that user experience standards are much higher than what they were providing on Android. They decided to mimic them and stratetigcally went after the market that allowed them to reach the #1 spot.

      Nokia, RIM and Microsoft are still figuring this out. Case in point, Microsoft’s Windows Phone is absolutely fantastic from user experience point of view but user adoption is much to be desired. Why? Because of Apple Marketing.

      Smart companies know when and how to play the moves. That’s what their commitment is to he stakeholders.

      Apple did the same back in the days with Xerox. :)

    • http://www.bilal.ca/ Bilal Jaffery

      Actually, quite the opposite. I am stating that Samsung was fast enough to recognize that user experience standards are much higher than what they were providing on Android. They decided to mimic them and stratetigcally went after the market that allowed them to reach the #1 spot.

      Nokia, RIM and Microsoft are still figuring this out. Case in point, Microsoft’s Windows Phone is absolutely fantastic from user experience point of view but user adoption is much to be desired. Why? Because of Apple Marketing.

      Smart companies know when and how to play the moves. That’s what their commitment is to he stakeholders.

      Apple did the same back in the days with Xerox. :)

  • http://www.bilal.ca/ Bilal Jaffery

    Just saw this comment in a forum discussion, ”
    Samsung also has stellar logistics, makes solid phones in a variety of models and has quick turnaround with new devices multiple times a year, while using an open source OS that can be prettied up by TouchWiz in different ways. Newsflash: constant novelty and constant Next New things sell. A lot of Samsung’s success is due to their business model of flooding the market with variants that target a range of income levels. Samsung sells more volume spread out across a wider range of products.

    Samsung is the largest distributor of Android. Android has things like Market/Play Store which should piss Apple off way more than external iPhone handset spot the esthetic difference games, because Apple showed the world that there was an easy way to make endless money even after you’ve sold expensive hardware – the App Store. And Google copied that success model. But Android is an OS which Google gives away for free to make ad-based revenue, so Apple would have a harder case with the assault route of suing Google and establishing a line of sight, proving that Google is a direct market competitor. Google also has a stockpile of patent nukes with its Motorola portfolio in this ex-cold war, among other tricks – yet unseen – sure to be up the sleeves.”

Blog by Bilal Jaffery. Copyright © Bilal.ca 2011