By Kim Yoo-chul
A U.S. federal judge has ordered Apple to disclose key financial information regarding the profitability of its products, dismissing the technology giant’s earlier request not to make it available to the public.
If Apple’s appeal is rejected, it is highly probable that the public will get access to financial details that reveal how much the company makes on each iPhone or iPad sold.
The decision came one day after an appeals court in the United Kingdom in Samsung ruled against Apple with respect to the non-infringement of a community design by Samsung Galaxy tablets.
``As this court explained in the Aug. 9 order, Apple has not established that public availability of its product-specific unit sales, revenue, profit, profit margin and cost data would actually provide its competitors with an advantage,’’ Judge Lucy Koh wrote in the ruling, Thursday (local time).
``In addition, there is great public interest in the data. Apple has not provided any new arguments for why this information should be protected,’’ the judge said.
The decision doesn’t necessarily mean Koh, who’s been presiding over a Samsung-Apple patent case, may overturn a verdict awarding $1.05 billion to the U.S. firm in August.
However, Koh’s decision to deny Apple’s request to seal a variety of key documents tied to its financial performance will have a negative impact on it. Officials familiar with the case say the ruling will raise controversy about Apple’s ``unethical management.’’
``Koh’s decision is worth thinking about as the order comes at a time when Apple has consistently been asking Samsung for key financial data. The Cupertino-based Apple feels a sense of urgency about a possible disqualification of the jury foreman Velvin Hogan,’’ said a high-ranking executive directly involved with the multi-billion dollar patent lawsuit.
Apple is looking for an extra $535 million in damages in addition to the $1.05 billion awarded by the jury and it also wants a variety of Samsung products banned from the U.S. market.
Samsung Electronics confirmed it is seeking a retrial as the firm believed the jury foreman should have been disqualified as he wasn’t truthful about his personal history of lawsuits and view of the patent system.
``Apple has been known for its decades-long uniqueness about its tight-lipped management policy on all key issues. As secrecy is Apple’s virtue, the order by the judge will hurt its key values,’’ said a local patent attorney by telephone on condition of anonymity.
Apple sells iPads and iPhones with parts sourced from companies in Taiwan, South Korea and Japan. Chinese workers assemble the Apple devices for low pay; therefore Apple’s profit margin is a stunning 30 to 40 percent.
Because Apple has undisputable bargaining power in parts, its top suppliers such as Korea’s LG Display have had to accept unreasonable and arrogant pricing demands if they want to continue their business partnerships, said officials.
In a related note, Hon Hai Precision Industry, which uses the trade name Foxconn Technology Group, admitted that it hired underage workers at one of its factories and apologized.
``Apple has paid very low money to Chinese workers and that’s why one of its plants in China was forced to shut down for a day after demands by workers for better working conditions and paychecks,’’ said an official, adding the order by Koh will make the Samsung-Apple case more dramatic.
The same California court previously ruled that Samsung didn’t infringe on Apple’s design-related patents and Apple’s request to block a complete sales ban on the Samsung Galaxy Nexus phone was dismissed.