Frenemies with Benefits: How Coopetition Fuels the Apple-Samsung Rivalry
A saga of rivalry, legal battles, and unexpected alliances.
Previously on Giuseppe’s Glimpse: In the last episode, we explored how retail has evolved from simple shopping spaces to immersive experiences that foster deeper connections with customers—beyond just selling products. Missed it? Catch up here! ✨
Buongiorno everyone! 👋
I want to take you on a little journey today—one that feels a bit like a rollercoaster ride through business, innovation, and, well, human nature. 🎢
Picture this: two companies, Apple and Samsung, once close allies, working together to shape the future of technology. Their partnership was built on trust, shared vision, and mutual respect.
But as we all know, the road to success is rarely a straight line. Sometimes, things take a sharp turn. 🚗💨
In the 1980s, Samsung was a rising star in the semiconductor industry, and Apple was just beginning its ascent. Little did they know that their fates would soon become intertwined in ways they never could’ve predicted.
What began as a business partnership would ultimately evolve into one of tech’s most intense rivalries ⚔️—and, unexpectedly, collaborations.
So how did it all unfold? Let’s dive in.
A partnership with promise
Back in the early ‘80s, Samsung was primarily focused on semiconductors, while Apple was still figuring out how to reshape the world with personal computers. 💻
But despite their different focuses, there was a bond forming between the two companies—one that would serve both for years to come.
In 1983, Apple’s CEO Steve Jobs and Samsung’s CEO Lee Byung-Chul started building a relationship that was, at first, incredibly productive. 🤑 Apple began ordering billions in electronic components from Samsung, and the two companies saw each other as partners, not competitors.
The future seemed bright. ☀️
They worked closely together, with Samsung supplying parts like chips, displays, and memory for Apple’s computers.
At this point, they were a dynamic duo of sorts—both companies benefiting from the growing tech market. But, like any partnership, it was delicate. 💣
The iPhone and the breaking point
Fast forward to 2007. ⏩ Steve Jobs is preparing to unveil the iPhone, the device that would not only change Apple but revolutionize the entire tech industry.
A year before the launch, Samsung’s new CEO, Lee Jae-Yong, even visited Apple’s headquarters for a private demonstration from Jobs himself.
The iPhone was as revolutionary as it seemed—Steve Jobs was certain of that. It was sleek, simple, and had the potential to redefine smartphones. ⚡
But here’s where things started to go south.
In 2009, just two years after that fateful meeting, Samsung launched the Galaxy smartphone—running on Android. At first glance, the Galaxy didn’t just seem inspired by the iPhone; it seemed like a near-perfect replica.
This breach of trust sent Jobs into a fury. 😡 He felt personally betrayed. In fact, he vowed to fight Android with everything he had.
The bond between Apple and Samsung, once so strong, was shattered. 💔 The partnership that had flourished for years seemed now irreparably damaged.
Battle between giants
By 2011, the legal war between Apple and Samsung was in full swing.
Apple approached Samsung with a licensing proposal: $30 per phone and $40 per tablet. 💰 But when Samsung rejected the offer, the gloves came off.
Apple filed a massive lawsuit against Samsung, accusing them of multiple violations, from product appearance to software elements and design patents.
Steve Jobs took the battle personally. He famously declared, “I’m going to destroy Android because it’s a stolen product. I’m willing to go thermonuclear war on this.” 💥
The lawsuit was no small affair—initially, it resulted in a $1 billion damages award for Apple. Samsung was ordered to stop copying Apple’s designs.
But Samsung wasn’t backing down. 💪 They counter-sued, claiming Apple had infringed on their patents. The court battles raged on, drawing in courts across the globe, and affecting not just the companies but the entire industry.
Samsung’s Galaxy Tab faced bans in Europe, while Apple was found guilty of violating Samsung’s patents. At one point, President Obama even had to intervene to prevent a ban on Apple’s iPhones in the US. 🇺🇸
Amid all of this, something unexpected happened: despite the legal battle, Samsung continued to supply key components for Apple’s iPhone.
For the iPhone X, Samsung provided OLED displays and memory chips. Each iPhone X sold earned Samsung $110 in component sales—surpassing the profits they made from their own Galaxy S8 phones. 📲
It seemed like a strange, almost paradoxical alliance, but that’s the tech industry for you.
Coopetition: turning rivalry into opportunity
Now, this story could have ended in animosity and nothing more. But here's where things get interesting. 👀
As we know, Tim Cook took over as CEO of Apple in 2011, and with that came a shift in strategy. Unlike Jobs, who viewed the battle as a personal crusade, Cook focused on settlements, rather than legal warfare.
And as time went on, Apple began to reduce its reliance on Samsung. ❌ In 2018, Apple added LG as a supplier for OLED displays.
But then, something unexpected happened—Apple and Samsung found a way to collaborate again. They brought iTunes and AirPlay 2 to Samsung’s Smart TVs. 📺
This was a win-win situation. Samsung sold more TVs with added features, and Apple expanded its content distribution network. The very companies that had been at war were now working together to benefit each other.
And that, my friends, is where the concept of “coopetition” comes into play. 🤝
A word that combines competition with cooperation, coopetition is the principle of working together with your competitors to achieve mutual benefits.
It’s a concept I explore in my latest book, Redefining Retail 📚, when I discuss how being exponential in business often means strategically leveraging third parties—yes, even competitors—to accelerate your go-to-market strategy and minimize risks.
After all, in today’s fast-paced tech world, it’s hard to do it alone.
By cooperating with competitors, companies can tap into each other’s strengths and create opportunities they couldn’t have achieved alone. ✨
So, as we see from the Apple-Samsung saga, competition doesn’t have to mean all-out war. Sometimes, it’s the partnerships—however unlikely—that lead to the greatest breakthroughs.
What do you think? 💬 Can competitors really be the best partners in the right context? Have you ever found yourself collaborating with a competitor?
Stay curious! 🙌
-gs
Oh, wow! You made it to the end. Click here to 👉 SHARE this issue with a friend if you found it valuable.