We have witnessed the Samsung versus Huawei feud for the last couple of years. With 40 lawsuits being filed against each other, Samsung and Huawei have finally decided to drop off all charges.
Tell me everything!
The two companies have finally decided to settle down on a long-running legal battle which had resulted in filing 40 lawsuits against each other. The settlement was reported by the local Chinese media.
According to Nikkei, they have decided to end their dispute over smartphone patents and refocus their energies on countering the global economic downfall in demand. Thus having resulted in them reaching a general agreement that is supposed to move them closer to a cross-licensing deal over smartphone patents.
In doing so, they want to shift all their monetary attention towards the litigation in other areas, especially in an increasingly difficult market environment.
Let’s retrace our steps…
In March 2016, Huawei filed a lawsuit against Samsung for having infringed on its patent in 4G and wireless network connections. Which resulted in Samsung filing a counter-lawsuit. This continuous cycle has resulted in the two companies filing a whopping 40 lawsuits against each other in China and elsewhere.
What brought in the settlement?
The settlement comes as the smartphone producing companies see a decline in a market already saturated with them and are gradually shifting towards the 5G network. Huawei has been able to avoid that trend as its shipments have seen an up by 50 percent in the first half of 2019 but Samsung unfortunately, could not.
Ryan Reith, program vice-president of IDC’s Worldwide Mobile Device Trackers have said, “It is becoming incredibly clear that Huawei is laser-focused on growing its stature in the world of mobile devices, with smartphones being its lead horse. The overall smartphone company market continues to be challenged in almost all areas, yet Huawei was able to grow shipments by 50%, not only signifying a clear number two in terms of market share but also closing the gap on the market leader – Samsung. This new ranking of Samsung, Huawei, and Apple is very likely what we’ll see when 2019 is all said and done.”
Samsung saw volumes of a drop in the 1Q19 with shipments of over 71.9 million. Even though the results have still managed to keep it on the top, Huawei is fast closing the gap between the two.
They aren’t the only ones
Last month, Apple and Qualcomm also settled their long-running legal battle which similarly spanned multiple years and several continents and was over smartphone patents. Maybe, 5G was the motivating factor for settlement this time as well.