The relationship between the two companies started with Steve Jobs' desire to lock in a large supply of flash memory, back in 2005. Signing the deal with Samsung, which then had 50% of the flash market, provided Apple with the steady flow of chips it needed to produce the Apple iPhone, Apple iPod and Apple iPad. At the same time, it gave Samsung an insight into what Apple was thinking. With the unique knowledge that Sammy had, it could tell that the Cupertino based Apple felt that it had a big winner with the iPhone.
Apple has been able to take advantage of Samsung's continuous upgrading of its capital plant. Last year, the company spent $21 billion on capital expenditures with a similar amount budgeted this year. But this relationship is also full of hate.
The popularity of iPhone is a mere result of excitement caused by some (Apple) fanatics," but Samsung's mobile head had a different thought. "The iPhone's emergence means the time we have to change our methods has arrived," said J.K. Shin the same year. The Samsung Galaxy S was born, followed by the Samsung Galaxy Tab which was seen as a blatant iPad ripoff at Apple. Cook had counseled patience, but Steve Jobs had had enough and in April of 2011, Apple filed its first lawsuit against Samsung. And the rest, as they say, is history.