The next twist in the Apple vs Samsung battle

US ITC rules that Apple infringed on Samsung patent rights.

 

The Samsung vs. Apple battle took another twist yesterday when the US International Trade Commission (ITC) ruled that Apple had infringed on Samsung patent rights.

This could mean a ban on the sale of certain Apple products in the US. Fortunately for Apple this ban would only relate to older models, most notably the iPhone 4 and the Ipad 2.

"We believe the ITC's final determination has confirmed Apple's history of free-riding on Samsung's technological innovations", a Samsung statement said.

Apple has already announced that they will appeal the ITC ruling. The ITC’s ban is also subject to review by the US President. The president can overturn it on public policy grounds, though this is considered unlikely. Apple can continue selling the devices during this review period which lasts up to 60 days.

The worldwide smart phone market is believed to be worth over $290bn. Although Apple dominated the market in 2012, Samsung outsold Apple by 2 to 1 in the first 3 months of 2013.  This shows that a shift may be occurring.

Samsung of course uses the Google Android system which is becoming more popular all the time. According to research firm Gartner, Android accounted for 66 per cent of global smart phone users in 2012, compared to 4 per cent in 2009, whilst Apple’s iOS operating system accounted for 19 per cent of the market in 2012, compared to 14 per cent in 2009.

Apple’s iOS system is of course only available from Apple products whereas Android is used by multiple brands including Samsung, Sony and HTC. Android can also be uploaded onto other devices including: laptops, netbooks, smartbooks, smart TVs, smart watches and cameras.

Notably, major tablet providers such as Google Nexus and Amazon also use Android. According to research form IDC, Apple accounted for 40 per cent of worldwide tablet sales in the first quarter of 2013, compared to 58 per cent in the first quarter of 2012. Android, on the other hand, had increased its market share from 39 per cent to 57 per cent over this same period.

Photograph: Getty Images

Andrew Amoils is a writer for WealthInsight

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The Brexit effect: The fall in EU migration spells trouble for the UK

The 84,000 fall in net migration to 248,000 will harm an economy that is dependent on immigration.

The UK may not have left the EU yet but Europeans are already leaving it. New figures from the ONS show that 117,000 EU citizens emigrated in 2016 (up 31,000 from 2015) - the highest level for six years. The exodus was most marked among eastern Europeans, with a fall in immigration from the EU8 countries to 48,000 (down 25,000) and a rise in emigration to 43,000 (up 16,000).

As a result, net migration has fallen to 248,000 (down 84,000), the lowest level since 2014. That's still nearly more than double the Conservatives' target of "tens of thousands a year" (reaffirmed in their election manifesto) but the trend is unmistakable. The number of international students, who Theresa May has refused to exclude from the target (despite cabinet pleas), fell by 32,000 to 136,000. And all this before the government has imposed new controls on free movement.

The causes of the UK's unattractiveness are not hard to discern. The pound’s depreciation (which makes British wages less competitive), the spectre of Brexit (May has refused to guarantee EU citizens the right to remain) and a rise in hate crimes and xenophobia are likely to be the main deterrents. Ministers may publicly welcome the figures but many privately acknowledge that they come at a price. The OBR recently forecast that lower migration would cost £6bn a year by 2020-21. As well as reflecting weaker growth, reduced immigration is likely to reinforce it. Migrants pay far more in tax than they claim in benefits, with a net contribution of £7bn a year. An OBR study found that with zero net migration, public sector debt would rise to 145 per cent of GDP by 2062-63, while with high net migration it would fall to 73 per cent.

Brexit has in fact forced ministers to increasingly acknowledge an uncomfortable truth: Britain needs immigrants. Those who boasted during the referendum of their desire to reduce the number of newcomers have been forced to qualify their remarks. Brexit secretary David Davis, for instance, recently conceded that immigration woud not invariably fall after the UK leaves the EU. "I cannot imagine that the policy will be anything other than that which is in the national interest, which means that from time to time we’ll need more, from time to time we’ll need less migrants."

Though Davis insisted that the government would eventually meet its "tens of thousands" target (a level not seen since 1997), he added: "The simple truth is that we have to manage this problem. You’ve got industry dependent on migrants. You’ve got social welfare, the national health service. You have to make sure they continue to work."

As my colleague Julia Rampen has charted, Davis's colleagues have inserted similar caveats. Andrea Leadsom, the Environment Secretary, who warned during the referendum that EU immigration could “overwhelm” Britain, has told farmers that she recognises “how important seasonal labour from the EU is to the everyday running of your businesses”. Others, such as the Health Secretary, Jeremy Hunt, the Business Secretary, Greg Clark, and the Communities Secretary, Sajid Javid, have issued similar guarantees to employers. Brexit is fuelling immigration nimbyism: “Fewer migrants, please, but not in my sector.”

Alongside the new immigration figures, GDP growth in the first quarter of 2017 was revised down to 0.2 per cent - the weakest performance since Q4 2012. In recent history, there has only been one reliable means of reducing net migration: a recession. Newcomers from the EU halved after the 2008 crash. Should the UK suffer the downturn that historic trends predict, it will need immigrants more than ever. Both the government and voters may only miss migrants when they're gone.

George Eaton is political editor of the New Statesman.

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