 Apple sued Samsung claiming that Samsung’s tablet and smart phones copied Apple’s iPad and iPhone  Samsung countersued Apple for damaging 10 patents

 Apple heavily relies on Samsung for chips and LCD displays  Apple is Samsung’s one of the top clients

 What impact does the lawsuit have on Apple and Samsung?  How could Samsung keep its patent rights while maintaining Apple as one of the top clients?  Who will benefit after the lawsuit? Who will lose?

 Competition  Allocation  Substitute  Resources  Inelasticity

 “Apple was Samsung’s second-biggest client after Sony of Japan last year, bringing in around 6.2 trillion Korean won ($5.7 billion) in sales, and is widely expected to become Samsung’s top client this year.”

 Samsung Electronics  Apple  iPad/iPhone consumers  Samsung consumers  Sony  Other Korean conglomerate electronic industries (ex. L.G.)  Other Korean electronics industries

 Advantage:  The winner satisfies its want  The winner’s financial state develops since it damaged the other’s patent rights  Disadvantage:  The relationship damages  If Samsung wins, it will lose its top client  If Apple wins, it will lose its most necessary resources

WINNER  Samsung  Samsung consumers LOSER  Apple  iPad/iPhones consumers

WINNER  Apple  iPad/iPhone consumers LOSER  Samsung  Samsung consumers

 Advantage:  Both companies will maintain their necessity  Other companies related to the two companies will maintain their stability  Disadvantage:  Samsung and Apple will have to charge extra compensation when cancelling the lawsuit  They both will not satisfy their want

 Apple has already damaged Samsung’s patent rights  Samsung satisfies its wants  Samsung keeps Apple as its top client  Apple keeps its best resources

 Reuters. (2011, April 22). Samsung Countersues Apple on iPhone and iPad Patents. New York Times. Retrieved from technology/23samsung.html?_r=1&scp=9&sq=Samsung&st=Search  Apple, Samsung overtake Nokia in smartphone market. (2011, July 31). Korean Herald. Retrieved from Detail.jsp?newsMLId=