A new profile of the love-hate relationship between Apple and Samsung details how the tech heavyweights springboarded off each other to emerge as the two dominant forces in the ongoing mobile computing revolution, while also disclosing that Apple CEO Tim Cook didn't share the same views as late company co-founder Steve Jobs in pursuing Samsung legally.
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But the modern day ties between Apple and Samsung were actually forged in a partnership back in 2005, when Apple was seeking out a stable supplier of massive quantities of flash memory. Jobs and Co. were betting the company on iPod Shuffle, iPod nano, and forthcoming iPhone designs that would forgo traditional hard disk drives with moving parts for solid-state versions based on NAND flash chips.
It was a time when the memory market was extremely unstable, and the Cupertino-based company wanted to assure that it was working with a supplier that was rock-solid financially, people familiar with the relationship told Retuers. And Samsung was already controlling half of the NAND flash memory market at that time.
The partnership gave Apple and Samsung insight into each other's strategies and operations. In particular, Samsung's position as the sole supplier of iPhone processors gave it valuable data on just how big Apple thought the smartphone market was going to be.....As for Apple, it reaped the benefit of Samsung's heavy investments in research and development, tooling equipment and production facilities. Samsung spent $21 billion (23 trillion won) on capital expenditures in 2012 alone, and plans to spend a similar amount this year.
Within years, however, the relationship would stumble upon its share of turmoil as Samsung began gaining market share with its family of Galaxy devices that Jobs felt were largely aped off the innovations and hard work over at Apple.
SOURCE: Apple Insider