Apple is demanding Samsung send it its entire stock of Galaxy Tab 10.1 tablets

Apple Australia is demanding Samsung send it its entire stock of Galaxy Tab 10.1 tablets to be destroyed as part of a legal battle that could soon extend to Samsung's smartphone range.
The Galaxy Tab 10.1's Australian launch was set for this month but Samsung has agreed to halt sales and advertising for the product following action by Apple in the Federal Court yesterday.

An expert on intellectual property law says Samsung's agreement indicates Apple has a case. But whether dump trucks laden with Samsung tablets will be hauling thousands of units to Apple HQ for destruction will have to be determined by the court, which will next hear the case at the end of this month.
Apple has $US76 billion in cash and is using this immense war chest to sue many of the competitors who are using Google's Android platform to challenge the iPad and iPhone's dominance.
Samsung and Apple are at each other's throats in both smartphones and tablets, with the former's Galaxy S II smartphone and Galaxy Tab tablet regarded by critics as being on par with or superior to Apple's offerings.
Recently it was revealed that Apple and Samsung had surpassed Nokia in global smartphone sales and the competition between the two is so heated that Apple and Samsung are now suing each other in no less than nine countries.
"It's no coincidence that Samsung's latest products look a lot like the iPhone and iPad, from the shape of the hardware to the user interface and even the packaging," an Apple Australia spokeswoman said today.
"This kind of blatant copying is wrong, and we need to protect Apple's intellectual property when companies steal our ideas."
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Samsung has not commented on the merits of Apple's action but said the case related to the US version of the Galaxy Tab 10.1, which Samsung has now agreed not to sell in Australia.
It said a version of the Galaxy Tab 10.1 for the Australian market would be released "in the near future" but did not say how this would differ from the US model. Apple may seek injunctions halting the sale of this new model as well if it determines that it is not sufficiently different to avoid infringing Apple's patents.
The suit is laced with irony as Apple is one of Samsung's biggest customers, with the latter manufacturing flash memory for Apple and the iPad's A5 processor.
Apple is also targeting other makers of Google Android smartphones including HTC. The US International Trade Commission recently ruled that HTC infringed on two of Apple's patents. HTC has indicated it will appeal against the ruling, which could see it prevented from selling phones in the US, and has since filed its own lawsuit against Apple in Britain.
Apple is also seeking to prevent HTC from selling its new Flyer tablet and has filed cases against Motorola over separate alleged patent infringements. Just last month Apple settled a similar lawsuit against Nokia.
Globally, Apple's products face significant threats from Google Android competitors, with recent figures from Canalys revealing Android has taken 50 per cent of the global smartphone market, compared with 19 per cent for the iPhone. However, in tablets Apple is still by far the dominant player.
In the Federal Court yesterday, Apple accused Samsung's Galaxy Tab 10.1 of infringing on 10 of its patents including the "look and feel" and touchscreen technology of the iPad, Steven Burley, a lawyer for Apple, told Federal Court Justice Annabelle Bennett.
Apple sought an Australian injunction and also wants to stop Samsung from selling the tablet in other countries, Mr Burley said without specifying where.
Samsung agreed to stop advertising the Galaxy Tab 10.1 in Australia and not to sell the device until it wins court approval or the lawsuit is resolved, according to an accord reached by lawyers during a break in the hearing.


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Apple announcing 20.3 Million iPhones more than Nokia and Samsung

The first of the five biggest smartphone makers announced their results for the second quarter 2011 with Apple announcing 20.3 Million iPhones. Wow. That is a monster quarter by Apple not because it grew by 9% quarter-on-quarter (three months ago the iPhone grew by 15% quarter-on-quarter) - the reason this is superb performance, is that Apple managed the growth in both unit sales and market share - is that there was no new iPhone 5 released for late June. 

So, I am tentatively projecting iPhones's market share to be 19%, up one percentage point from 18% in 1Q. Apple is now closing in on selling 1 out of every 5 smartphones on the planet. Awesome for the smartphone brand which is by far the most expensive phone among the major brands (i.e. excluding the luxury phones like Vertu and Tag Heuer etc). Apple obviously grew revenues and grew profits massively this past quarter. It also reported excellent sales in its iPads and Macs. Only iPod sales declined (being partly cannibalized by the iPhone and iPad).

Apple Up, Nokia Tumbles

How does this set the stage for global hegemony in smartphone handset makers? It's an awesome first salvo in the battle among the big 3. We hear from every market that Nokia sales in smartphones are down. Nokia will report on Thursday. Nokia sold 24.3 Million in the first quarter but its quite likely Nokia's fall in sales will drop it below the iPhone in smartphones (they will remain the world's biggest mobile phone handset maker when we add 'dumbphones'). 

But yes, if Nokia reports sales that dip under the 20M level, so any smartphone sales level in the 'teens' (19M, 18M, 17M etc) then yes, iPhone will have jumped past Nokia and relegated Nokia from the top dog status in smartphone makers for the first time in smartphone history (as Nokia invented the space and has been biggest smartphone maker from the beginning up to now).

If so, it was this article who first called it on June 15, that Apple has passed Nokia in smartphone makers.

But that is before we have Samsung's numbers - they report on July 29. The gossip around Samsung talks of a monster quarter there. In 1Q 2011, Samsung sold 12.6 Million smartphones and under normal times, it would be nearly impossible for one brand to jump from under 13 Million to around 20 Million in one quarter, but these are not normal times and Samsung ships smartphones on three different operating systems: Android, Bada, Windows Phone 7. 

After the Nokia smartphone customer give-away of the Stephen Elop 'windfall' when the Symbian Nokia phone sales collapsed from February, now is the time for rival smartphone makers to gobble up all those disgruntled Nokia Symbian customers. Obviously Apple has taken 1.7 Million of those. But the analysts around Samsung are estimating something around 19 Million smartphone sales for the South Korean maker. Samsung mobile phones unit CEO just yesterday released a bullish statement about the full year 2011 Samsung smartphone sales, saying that Samsung will exceed its 60 Million smartphone sales target (up from 25 Million sales in 2010 making Samsung the fastest-growing smartphone manufacturer this year). It means a Samsung 2Q could be tantalizingly close to the Apple 20.3 Million number. My gut says Sammy will not quite make it this quarter but Nomura earlier in June already called it for Samsung to have become biggest smartphone maker this quarter, so it will be very close and if they have a surprising surge, they could have done it. We'll know on July 29.

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Apple's 1.7 Million Extra Sales...

Where did the 1.7M unit sales growth come from? Apple obviously has benefitted from the Nokia give-away, but also remember RIM reported a decline in smartphone sales for Q2. And RIM's loss in BlackBerry sales was specific to major losses in the North American market (while growing international sales). So the iPhone has taken some of Blackberry's American Pie, while another part of iPhone growth came by spoiling Nokia's European Vacation. Was there also perhaps for Apple a China Syndrome, we will probably know soon as we get the various analysts reporting in and the data filtered and analyzed.

Meanwhile please remember, on the platforms for smartphones, Google's Android is by far the biggest now, and they sold about 49 Million smartphones in Q2 so yes, Android selling about 2.5x more smartphones now globally than the iPhone. So while Apple is likely now the world's biggest actual mobile phone smartphone handset maker, the operating system with most smartphones sold will continue to be, with an ever-increasing lead - Google's Android.

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So, let's wait until we get the Nokia numbers before we formally celebrate Apple toppling Nokia from biggest smartphone crown. That is very likely to have happened now and we'll know in two days. And then we have to wait another week to find out if Apple has also taken the crown (or if it was grabbed by Samsung). But Congratulations to Cupertino! This is a MONSTER quarter once again. Full 10 out of 10 points for excellence in smartphone sales. With almost a year-old design, Apple still grows unit sales, increases revenues, increases profits, and increases market share. Excellent Apple. Truly great.

And two superb silver linings on the record-breaking quarter for Apple. We are expecting the next iPhone (maybe iPhone 4S or may be iPhone 5) and expected to be sold in late August or September. When that new iPhone comes to the market, it will be again Apple loyalists camping outside stores and long lines waiting for it. That hysteria will boost iPhone sales to a new record.

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Samsung deny delivery a notebook computer software to secret spy

Late this afternoon, Samsung Australia said the allegations were "not true".

"Our findings indicate that the person mentioned in the article used a security program called VIPRE [antivirus software] that mistook a folder created by Microsoft Live Application for ... key logging software, during a Hp pavilion dv6 Batteries virus scan."

IT publication Network Wold reported that Mohamed Hassan, founder of NetSec Consulting Corp, a firm that specialises in information security consulting services, detected spyware on a laptop he purchased from Samsung in February.

Earlier today, Samsung spokesman Jason Redmond told PC World that the company was looking into the allegations. "We take these claims very, very seriously," he was reported as saying.

Samsung Australia, also earlier today, said it was investigating the issue "as a matter of urgency" but could not comment on a local level because the issue had originated outside of Australia. "As soon as we have an update on the investigation, we will share this with you," the company said.

Security expert Chester Wisniewski, of security firm Sophos,said in a blog post Dell latitude e6400 battery that what Samsung had allegedly done was "astonishing".

"After the massive uproar that resulted when Sony installed rootkits on peoples computers when they listened to an audio CD, you would hope the world would realise this type of behaviour is totally unacceptable," he said.

When setting up the laptop (model R525), Mr Hassan decided to run a security program on it and run a full system scan before installing any of his own software, the report said. In doing so, it said he detected a secret program called “StarLogger” installed.

Typically known as spyware, the secret software alleged to have been installed on Mr Hassan’s computer is described by one website as being able to record “every keystroke made on your computer on every window, even on password protected boxes”. It goes on to say that the software is “completely undetectable and starts up whenever your computer starts up”.

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After analysing the laptop, Mr Hassan came to the conclusion that the spyware must have been installed by Samsung, and so he removed it and carried on using it normally, the report said. But after some issues with the video display, he returned it and bought another model which had better features (model R540).

After doing the same security software scan on that laptop(Hp probook 4720s Batteries), the report said Mr Hassan again found the same secret software installed. This time he thought something was suss, and soraised the issue with Samsung.

After denying the presence of the software on its laptops, Samsung allegedly changed its story and referred Mr Hassan to Microsoft since “all Samsung did was to manufacture the hardware”.

But after the incident was escalated to a supervisor, Mr Hassan claims that they told him that they put the software on their laptops to "monitor the performance of the machine and to find out how it is being used”.

Network World said it contacted three public relations officers at Samsung for comment and gave them a week to send back their comments. “No one from the company replied,” it said.

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