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Apple's (AAPL) patent fight with Samsung gets hotter, this time with AAPL accusing Samsung of...
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Friday, May 11, 2012, 6:04 PM ETApple's (AAPL) patent fight with Samsung gets hotter, this time with AAPL accusing Samsung of destroying evidence. The allegation claims that Samsung destroyed “vast quantities of relevant evidence by routinely purging emails from custodian computers, and has continued to do so despite its duty to preserve evidence to the case.
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From an investor perspective, it should put a little backbone into the stock price, because a certain percentage of investors flee any legal or accounting controversy--especially if the company seems to be on the defensive endlessly. That's how Microsoft ran their game for a decade--and the stock took horrible long-term damage. In APPL's case, it would be quite a relief to resolve the Proview mess, and get the best of Samsung in any matter.
Personally, I have read hundreds--if not a thousand--opinions on the weird "frenemy' co-dependent relationship enjoyed by APPL and Samsung, and were I Tim Cook, I would use whatever portion of the $120 billion AAPL has in the bank necessary to build my own proprietary source of supply regarding semiconductors and semiconductor sub-assemblies, thereby staunching the outflow of intellectual capital and ideas.
The Koreans are unstoppable--while everyone worries about China ripping off intellectual property, they should be hyper-vigilant about Korea--specifically Samsung. Samsung needs to be ejected from the APPL ecosystem, if for no other reason than long-term AAPL self-preservation. To see the Korean ethic at work, one simply need look no further than Hyundai and Kia, who are currently banqueting at Honda and Toyota’s table.
The sad truth is that it is very, very difficult to cultivate semiconductor independence here in America, which makes every aspect of establishing such a supplier almost impossible. Environmental, labor and tax issues nearly foreclose such a remedy, and as long as AAPL must venture out into other countries, it will face the threat of defection and loss of intellectual property. It really needs its own factory--in its own country.
It's fascinating to see one of the greatest companies in America be hated so much by its own people. It's probably more loved and revered outside America. Pretty sad state of affairs.