Apple, Samsung Fall Out Of Love

    October 17, 2005

Everyone knows relationships are tough, especially when one of those partners runs into legal problems. This seems to be the issue with Samsung and Apple. After a flashy and memorable courtship, it looks like the two companies are out of sync.

According to the Korean Economic Daily (KED), Apple dropped its $3.8 billion deal with Samsung over advancing flash-based memory chips, currently a staple of Apple’s iPod product line.

The reasons behind the breakup center primarily around Samsung’s legal problems. They pleaded guilty in U.S. court for price fixing and agreed to a $300 million fine. South Korean courts are examining the possibility Samsung and Apple could be investigated for antitrust issues as well.

The KED reported Apple’s looking into alternative relationships for memory chips for some type of joint flash chip operation in the U.S. The problem comes down to the fact that Samsung is still the world’s largest NAND Flash chipmaker. Apple had agreed to pick up 40% of Samsung’s output for the second half of the year.

“We had had some talks with Apple earlier this year but it did not work out due to differences over terms,” a Samsung spokesman told the Washington Post by telephone, adding they had dropped the joint investment talks “at a very early stage.”

John Stith is a staff writer for WebProNews covering technology and business.