Microsoft sued Samsung last year claiming the spy TV maker had breached a collaboration agreement by initially refusing to make royalty payments.
This was soon after Microsoft bought Nokia’s handset business in September 2013.
The lawsuit claimed Samsung still owed $6.9 million in interest on more than $1 billion in patent royalties it delayed paying. Samsung has countered that the Nokia acquisition violated its 2011 collaboration deal with Microsoft.
Microsoft has not said how much Samsung is paying it. In 2011, a technology analyst at Citigroup estimated that Microsoft was getting $5 per Android handset sold by phone maker HTC under a patent agreement, and that Microsoft was looking for up to $12.50 per phone from other handset makers it had yet to come to an agreement with.
Microsoft denied this figure but if it applied the $5 price to Samsung, the Korean company could be paying Microsoft about $1.6 billion per year.
Samsung said it had agreed in 2011 to pay Microsoft royalties in exchange for a patent license covering phones that ran Google Android operating system. Samsung also agreed to develop Windows phones and share confidential business information with Microsoft, according to court filings.
Micromax has become the leading supplier in India’s booming smartphone market for the first time in the fourth quarter.
According to beancounters at research firm Canalys, New Delhi based Micromax accounted for 22 percent of smartphone sales in India in the October-December quarter, ahead of Samsung’s 20 percent. In total, 21.6 million smartphones were sold in India in the period, a 90 percent surge from a year earlier.
India, which has the world’s second-highest number of mobile phone accounts after China, is the third-biggest market by number of smartphones sold. Low-priced smartphones are the top sellers in a country where many buyers are upgrading from feature phones.
Micromax’s performance was partly due to its “continuing appeal to mobile phone users upgrading to smartphones,” Canalys said.
It estimated nearly a quarter of smartphones sold in India in the fourth quarter were devices priced under $100, while 41 percent of devices sold were in the $100-$200 range.
Micromax and Samsung were followed by two other Indian budget smartphone brands, Karbonn and Lava, by number of handsets sold in fourth quarter. Japan’s Sony Corp said its net annual loss will likely be smaller than previously forecast after cost cuts and higher-than-expected sales of its image sensors and PlayStation video game consoles helped its third-quarter profit beat estimates.
Some analysts believe that not only has the market reached maturity, but it’s hard to persuade people to upgrade. Others think that tablets are being squeezed on the one hand by larger screen size smartphones and others by low cost notebook PCs.
Samsung told Qualcomm it would not use the chip for its Galaxy S6 model because of overheating problems and Qualcomm suggested it would make a few modifications.
However LG, which is also using the chip, appears outraged. Its initial response to Samsung’s statement was that the chip never overheated and there were no problems. Now it is threatening to take legal action against Qualcomm if it modifies its latest Snapdragon 810 chip.
Its argument is that if Qualcomm modifies the Snapdragon 810, it means that the company admits the chipset has a flaw. Then it could trigger legal disputes, a spokesLG said.
So in other words – LG claims there is nothing wrong with the chip, but if Qualcomm admits there is something wrong with the chip then it will sue.
The question here is then why LG did not detect the Snapdragon’s fire breathing qualities.
It has been suggested that Qualcomm will provide a modified chipset to Samsung, something that Qualcomm and Samsung Electronics declined to confirm.
The Snapdragon 810 is designed as a 20-nanometer flagship mobile processor for top-tier smartphones.
The system on chip (SoC) integrates the fourth-generation long-term evolution advanced model (LTE-A), dubbed category 6, and theoretically supports up to 450 megabits-per-second data download speed.
But Samsung was worried that the chipset had a serious “throttling” problem that forcibly limits the graphic processing performance when it overheats, reports said.
Analysts said that a chipmaker could modify a new chip before mass production and Qualcomm may update it if its major client Samsung is uncomfortable with the overheating problem.
Qualcomm has said it will start mass-producing the Snapdragon 810 in the first half of the year.
For Qualcomm, Samsung Electronics is one of the most important partners, so the company is likely to show some reaction to the overheating issue.
While the legal battle raised over such crucial matters as whether or not Steve Jobs invented the rounded rectangle, Apple moved away from Samsung as its main producer of chips. In fact analysts believed that in the long term Samsung would lose any Apple production completely.
According to the Maeil Business Newspaper it seems that Apple has changed its mind and Samsung is back to being the main supplier of processors powering Apple iPhones.
It looks like Samsung will be responsible for around 75 percent of the chip production for the next iPhone, the South Korean newspaper said.
The newspaper did not say how much the contract is worth and what other company will be supplying Apple. Samsung will make the chips from its factory in Austin, Texas, according to the report.
What appears to have happened is that not only has the row between Samsung and Apple cooled, Jobs’ Mob discovered that Samsung’s rivals, such as TSMC were not up to snuff or had capacity problems.