The Samsung Galaxy tablet has been dealt another blow after tech giant Apple refused to negotiate with the Korean manufacturer as the two companies continue to battle over an alleged patent dispute.
The continued absence of the Galaxy Tab from Australian stores threatens Samsung’s place in the market according to experts as Apple’s iPad remains the preferred choice for a cheap consumer tablet device.
“If it does take a couple of years before Samsung devices come out, if that possibility occurs, then it could be quite devastating to their business,” says Telsyte research director Foad Fadaghi.
“From a consumer’s point of view choice is paramount. And from a consumer advocacy point of view the more products the lower the prices and the better each product eventually becomes.”
Samsung warned the Federal court about that situation yesterday, with counsel Neil Young QC telling the court that “if it is held out of the market for six months … Samsung will start to lose its status as an innovator”.
The problem is that Samsung could face a wait of several months if the case against Samsung goes ahead. Apple requested a ban on selling the device until several claims have been heard – but that could take until well into next year.
Apple rejected a deal yesterday after Samsung indicated that it would be prepared to head into final hearings before the end of the year, although it wanted the ability to sell the Galaxy Tab before Christmas.
Young said yesterday the two companies are “a considerable way apart in formulating a basis for an early final hearing” with Apple’s counsel arguing that Samsung’s proposal was merely “tactical”.
Apple has moved to block sales of the tablet here and in Europe, where a similar injunction has been put in place, and cases are ongoing in the United States and Japan as well.
Fadaghi says the legal systems in those countries have major differences but decisions made here could affect cases in other countries.
“What we see in Australia might affect those decisions elsewhere and likewise decisions elsewhere might affect something here and then an eventual deal of sorts may occur,” Fadaghi says.
“This is a scenario where we might see it take quite a while before any deal can emerge. It might even be a few years before we know what the outcomes are.”
Such a situation would be devastating for Samsung, which relies on the rapid cycle of new technology products to remain relevant.
Federal Court Judge Annabelle Bennett said an order needs to be handed down sooner rather than later and the list of infringements has been cut from 13 to two.
Fadaghi says the future might be brighter than expected for Samsung, noting that the company will continue to produce new products.
“I wouldn’t discount them yet. They are growing quite strongly and no doubt will survive and thrive regardless of any decision,” he says.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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