Because the iPhone 3G uses Samsung's S5L7900 chip processor, Samsung Electronics' Chen Zairong attended Apple's press conference to support his own chip.

Song Yi did not expect that Samsung and Apple, the two largest smartphone manufacturers in the future, would join forces to meet the challenge of Gaojin Electronics.

Throughout the launch event, Steve Jobs emphasized that iPhone 3G is the best smartphone currently available, and said that Apple abandoned the aluminum alloy metal body in order to provide users with a good communication experience.

Although the iPhone 3G uses a plastic back cover, it is not ordinary plastic, but polycarbonate (PC plastic). Currently, the iPhone 3G is only available in black and white, and will be available in a special Christmas red color during Christmas.

As a competitor, Song Yi also watched the product launch of iPhone 3G. Steve Jobs was obviously eager to launch the iPhone to compete with the Galaxy S1.

The performance of the Samsung S57900L chip processor in the iPhone 3G is almost the same as that of the A1 processor developed by Gaojin Electronics, and there is no obvious upgrade in memory.

If we must emphasize the advantages of iPhone 3G, it is nothing more than that the applications in Apple Store are richer than those in Galaxy S1's App Store, which is also the result of Apple's many years of technological accumulation.

However, Steve Jobs never mentioned the competing phone Galaxy S1 at the launch conference, as if the phone did not exist at all. However, since Gaojin Electronics released the Galaxy S1 earlier than Apple, Jobs was embarrassed to say that the iPhone 3G was the world's first touch screen smartphone.

However, Steve Jobs still mentioned Gaojin Electronics in an interview after the press conference. He said that Apple and Gaojin Electronics are both new players in the mobile phone industry.

Apple was the first hardware company to enter the touch screen smartphone market. He didn't understand why Gaojin Electronics was able to launch a touch screen smartphone before Apple. Apple also applied for many related patents for touch capacitive screens at the beginning.

At this time, the reporter who was interviewing Steve Jobs grasped Jobs's subtext, "Steve, do you mean that Gaojin Electronics may have stolen some of Apple's patents? The Galaxy S1 series of mobile phones may have infringed Apple's patents?"

Steve Jobs' answer was somewhat ambiguous. "Touch-type capacitive screens have been around for a long time. They are not our patent. Other mobile phone manufacturers have not adopted touch-type capacitive screens because the technology is very difficult."

"I would not be surprised if electronics giants like Nokia, Motorola or Samsung could solve the technical difficulties of touch-screen capacitive screens. But Gaojin Electronics is, after all, a young company that has only been established for four or five years. It is indeed remarkable that it can launch a touch-screen smartphone before Apple. Perhaps the inspiration of geniuses is also common?" Steve Jobs said easily.

Kim Tae Hee also saw the report about Steve Jobs and said to Song Yi, "Honey, Steve Jobs also praised you in the report, saying that geniuses have common inspirations and admitting that you and he are the same type of geniuses."

Song Yi smiled, "Steve Jobs didn't mean that. He implied in his words that Gaojin Electronics was borrowing ideas from Apple. Apple is likely to launch a patent war against Gaojin Electronics to squeeze its market share. Samsung is happy to see this happen."

Kim Tae-hee was not happy. "It was obviously our company, Gaojin Electronics, that first released a touch screen smartphone. The design of the iPhone 3G is similar to that of the Galaxy S1. We did not sue Apple for copying our design. How dare they say that Gaojin Electronics infringed Apple's patents?"

The reason why Song Yi is certain that Apple may launch a patent war against Gaojin Electronics is mainly due to HTC's experience.

In 2011, HTC was the third largest smartphone manufacturer in the world, with a market share of 14%. At that time, HTC was also the largest smartphone manufacturer in the US market. In order to crack down on Android phone manufacturers, Apple initiated a patent lawsuit against HTC in the US International Trade Commission.

If the USITC determines that HTC has infringed the rights, it may ban the sale of HTC smartphones in the US market.

"In addition to Apple, Samsung Electronics may also launch a patent war against Gaojin Electronics. Apple also considered this aspect when using Samsung's S57900L chip processor in iPhone 3G," said Song Yi.

When Kim Tae-hee heard Song Yi's analysis, she felt a little worried. If Samsung and Apple formed an alliance and attacked Gaojin Electronics together, it would be difficult for Gaojin Electronics to cope with it.

Song Yi saw Kim Tae Hee's expression, held her hand, and reassured her, "Don't worry, Apple has never made a mobile phone before, and it hasn't applied for many patents in the mobile phone industry. It's not easy for Apple to win a patent lawsuit."

"It would be troublesome if Nokia or Motorola initiated a patent lawsuit against Gaojin Electronics. After all, Nokia and Motorola, the two mobile phone giants, have been working in the mobile phone industry for more than ten years. The Galaxy S1 series of mobile phones will definitely use some patents of Nokia or Motorola, and Gaojin Electronics will also pay patent licensing fees to these two companies every year. If Gaojin Electronics acquires the mobile phone business of Nokia or Motorola in the future, Gaojin Electronics will have its own patent wall and will not be afraid of other mobile phone manufacturers filing patent lawsuits with us." Song Yi said.

In January 2014, Lenovo acquired Motorola's mobile phone business for $2.9 billion. This was another major acquisition by Lenovo after it acquired IBM's personal notebook computer business in 2005.

Nokia and Motorola are still in their heyday today, but Motorola would never have imagined that they would go bankrupt in just six years.

Before Lenovo acquired Motorola's mobile business, Google spent $12.5 billion to acquire Motorola Mobility in August 2011.

Motorola still had a license to use Android smartphones at the time, and Google also retained Motorola Mobility and operated it as a separate subsidiary.

Google acquired Motorola Mobility in order to acquire Motorola's 24,000 technology patents. Google plans to help Android phone manufacturers such as HTC and Samsung in their patent lawsuits with Apple.

Both Nokia and Motorola later sold their mobile businesses. Nokia sold its mobile phone business to Microsoft, and Motorola first sold itself to Google and later sold its mobile phone business to Lenovo.

When Lenovo buys Motorola's mobile business, Motorola's 3,500 employees, its 2,000 patents, the Motorola Mobile brand and trademark, and more than 50 global operator partnerships will all belong to Lenovo's mobile business.

The reason why Google spent $12.5 billion to acquire Motorola Mobility was that Motorola Mobility had $3 billion in cash in its account at the time and also enjoyed $1 billion in tax benefits from the United States.

Google also sold Motorola Mobility's set-top box business for $2.4 billion. In addition to these, when Google acquired Motorola Mobility, Motorola Mobility also held 17,000 technology patents. Later, Google took away 15,000 of them, leaving only 2,000 non-core patents to Lenovo.

Lenovo acquired Motorola's mobile business in an attempt to replicate IBM's success in personal computers. Lenovo thought it was getting a great bargain by spending $2.9 billion, but in fact it bought an empty shell.

If Gaojin Electronics wants to build its own patent moat, it would be more feasible for it to buy Motorola Mobility before Google.

However, Motorola Mobility is an American company, and whether the United States will agree to Gaojin Electronics' acquisition is still unclear. In comparison, Gaojin Electronics' acquisition of Nokia may be less difficult.

In September 2013, Microsoft announced the acquisition of Nokia's mobile phone business, buying most of Nokia's mobile phone business for US$5 billion, and then buying Nokia's patent license for US$2.18 billion.

The "Nokia" brand will continue to be retained, and its smartphone brands and products such as "Lumia" and "Asha" will continue to operate.

Kim Tae-hee certainly didn't expect that mobile phone giants like Nokia and Motorola would sell their mobile phone businesses in a few years. She raised her own doubts, "Although the emergence of Galaxy S1 and iPhone 3G may bring some changes to the current mobile phone market, if Nokia and Motorola start to transform from now on and enter the smart phone market earlier, these two companies will still have very strong competitiveness. They will not sell their mobile phone businesses to us, Gaojin Electronics, right?"

"As the saying goes, it's hard to turn a big ship around. Mobile phone giants like Nokia and Motorola actually have a hard time keeping up with the development trend of smartphones."

"The Galaxy S1 series of mobile phones has been released for almost a year, but Nokia and Motorola have not yet launched smartphones similar to the Galaxy S1. Doesn't this speak volumes? When Nokia or Motorola goes downhill, it will be the right time for us at Gaojin Electronics to acquire these two companies." Song Yi gave his own judgment.

In order to deal with Apple's possible patent lawsuit, Song Yi made a special trip to LG Group and visited Gu Bon-sung and his son Gu Kwang-mok.

In order to express its welcome to Song Yi, LG Group laid a red carpet outside the LG Group's headquarters building, and Ju Guangmo was waiting for Song Yi's arrival downstairs.

Song Yi was very surprised to see Gu Guangmo while sitting in the car. He quickly got out of the car and shook hands with Gu Guangmo. "Guangmo, I came to visit LG Group with a learning attitude today. Thank you for your hard work."

Gu Guangmo smiled and said, "SA Group is now one of the most important business partners of our LG Group. In order to entertain you, no matter how grand it is, it won't be too much."

Under the introduction of Gu Guangmo, Song Yi shook hands with the executives of LG Group one by one. Song Yi also praised LG Display, a world-renowned LCD panel manufacturer that provides mobile phone screens for the Galaxy S1 series of mobile phones.

Ju Guangmo first congratulated Song Yi, "Chairman Song, I heard that the global sales of the Galaxy S1 series of mobile phones have exceeded 8 million units. It seems that the global sales of the Galaxy S1 series of mobile phones will exceed 10 million units in the near future."

Song Yi is very modest. "The sales of Galaxy S1 series phones are beginning to slow down. It should not be a problem for global sales to exceed 10 million, but whether we can achieve the goal before the end of this year remains to be seen."

Gu Guangmo said enviously, "Being too modest is actually pride. Even though LG has been producing mobile phones for so many years, there are only a handful of models that have sold more than 10 million units."

In the smartphone world, a model with sales of 10 million is considered a super hit. Huawei's Mate series has only sold 20 million units.

The best-selling single smartphone model is Apple's iPhone 6, with a total of 220 million units sold.

The hot sales of iPhone 6 and iPhone 6S also helped Apple become the champion of US stock market capitalization, with a market value of more than 710 billion US dollars. In comparison, Google's market value is only 489 billion US dollars.

After greeting Gu Guangmo, Song Yi met Gu Bensheng. Song Yi took the initiative to step forward and shook Gu Bensheng's hands, "Chairman Gu, I have long wanted to come to LG Group to learn from you, and today I finally caught up with this opportunity."

Seeing that Song Yi was not arrogant, Gu Bensheng felt relieved. "Chairman Song, you are too polite. When you suggested that LG Display start to transform into producing small LCD mobile phone screens, I had some doubts. However, the success of the Galaxy S1 series of mobile phones proves that I was too conservative."

"The iPhone 3G uses Samsung's S57900L chip processor, and the Galaxy S1 series phones use our LG Display screens. This can be seen as a beneficial attempt by Samsung Electronics and LG Electronics to enter the smartphone field."

"I remember that Chairman Song said in an interview that he was not opposed to opening the SuperOS system to other mobile phone manufacturers. If LG Electronics also starts producing smartphones, can LG's smartphones also use the SuperOS system?" Gu Bensheng finally met Song Yi and asked him the question that he was most concerned about at the moment.

"The SuperOS system has been updated to version 1.1.2. There are still many bugs in the Super OS system, which need to be fixed by SA Soft colleagues. Some users of Galaxy S1 series phones have encountered problems such as flash back after sliding to unlock and entering the phone home page after upgrading the system. After deleting mobile applications, the phone still freezes. "

"We certainly will not rule out opening the SuperOS system to LG Electronics. If the smartphones produced by LG Electronics want to be equipped with our SuperOS system, I would also welcome it very much. However, I suggest waiting until the SuperOS system ecosystem is more mature and the system runs more stably before joining the SuerOS family, so as not to bring a bad experience to LG Electronics' mobile phone users." Song Yi replied.

When Gu Bensheng heard Song Yi's answer, he felt sad about Song Yi's cunning. Song Yi did agree to open the SuperOS system to LG Electronics, but said that now was not the right time.

In addition to Samsung, Google also contacted LG Electronics to persuade it to join the Android camp.

Both Apple and Gaojin Electronics insist on building their own mobile phone software systems, the former has iOS and the latter has SuperOS. The reason why Apple was able to build the iOS system is mainly due to the experience brought by Apple's MacOS system. The reason why Gaojin Electronics was able to build the SuperOS system is mainly due to the technical support provided by SA Soft, the largest Internet giant in South Korea.

If LG Electronics wants to enter the smartphone industry, they do not have the energy or the willingness to invest huge amounts of money to start from scratch and build their own mobile software system.

So for LG Electronics, it can either join the Android camp led by Google or join the SuperOS camp led by Gaojin Electronics. Gu Bensheng himself actually prefers Google's Android system, after all, the Android system is an open source system, and LG Electronics can deeply optimize the Android system and customize its own app store and map applications.

Song Yi explained his purpose to Gu Bensheng, "Chairman Gu, during the development of Galaxy S1, Gaojin Electronics applied for a number of technical patents related to mobile phones and 3G communications. These patented technologies play a key role in the production and manufacturing of smart phones."

"Compared with LG Electronics, Gaojin Electronics is a new mobile phone manufacturer after all. In order to help LG Electronics enter the smartphone industry faster, and also to make up for our Gaojin Electronics' technical shortcomings."

"I want to form a patent technology alliance with LG Electronics. Our two companies can authorize each other to license key mobile phone technology patents and 3G communication technology patents. This will also help our two companies better deal with patent traps of other mobile phone manufacturers in the future. What do you think?" Song Yi suggested.

When Gu Bensheng heard about Song Yi's intention, he hesitated. After all, LG Electronics is the fifth largest mobile phone manufacturer in the world and the second largest mobile phone manufacturer in South Korea. If Gaojin Electronics and LG Electronics license patent technologies to each other, and if LG Electronics has much more patent technologies than Gaojin Electronics, then if they license each other, Gaojin Electronics will gain an advantage and LG Electronics will suffer a loss.

Seeing that Gu Bensheng was a little hesitant, Song Yi immediately understood his concerns, "Chairman Gu, we at Gaojin Electronics will not ask you, LG Electronics, to reveal all your assets. If we at Gaojin Electronics provide 800 patents, then LG Electronics only needs to provide a similar number of mobile phone patents."

"Because LG Electronics has not yet started to produce smartphones, and Gaojin Electronics' mobile phone patents are more applicable to smartphones. If LG Electronics and Gaojin Electronics start to license each other's patents now, then Gaojin Electronics will undoubtedly take advantage of LG Electronics."

"In this way, I can make a promise to LG Electronics. If Gaojin Electronics and LG Electronics can reach an agreement on mutual patent licensing, before LG Electronics officially produces smartphones, we, Gaojin Electronics, are willing to pay a certain patent licensing fee to LG Electronics every year. Once LG Electronics starts producing smartphones, our two companies will use the technical patents in the patent alliance without having to pay patent licensing fees to each other." Song Yi extended an olive branch.

The LG Electronics executives were all a little moved when they heard Song Yi's promise. Song Yi's meaning was very clear, he came here today just to reach a patent alliance with LG Electronics.

If LG Electronics has not yet produced smartphones, Gaojin Electronics will pay LG Electronics corresponding patent fees every year. When LG Electronics also begins to get involved in smartphone manufacturing, Gaojin Electronics and LG Electronics can use the patents in the patent alliance for free because they have already authorized each other with relevant patents.

Since Song Yi was so sincere, LG Electronics had no reason to refuse. In the end, Gaojin Electronics and LG Electronics signed an agreement to license each other's patents.

Gaojin Electronics contributed 900 patents in the fields of mobile phones and 3G communications, and LG Electronics contributed 870 mobile phone patents. Gaojin Electronics and LG Electronics also agreed that the two companies would contribute at least 300 patents each year to the patent alliance of Gaojin Electronics and LG Electronics.

On September 19th, the first anniversary of the launch of the Galaxy S1 series of mobile phones, Gaojin Electronics announced that the global sales of the Galaxy S1 series of mobile phones exceeded 11 million units.

Gaojin Electronics will hold a spring new product launch in January 2008 to release its second-generation smartphone Galaxy S2. On September 30, Apple filed a patent lawsuit with the U.S. International Trade Commission, accusing Gaojin Electronics of infringing on four of Apple's patent technologies.

The two most important patents are the slide-to-unlock patent and the photo management patent. Apple asked the US International Trade Commission to ban the sale of Galaxy S1 series phones in the US market. (End of this chapter)