Apple Inc.’s (AAPL) sapphire, Samsung’s graphene in tech arms race

Samsung no doubt hopes that it has the key to putting Apple Inc. (NASDAQ:AAPL) permanently into the shade in its latest developments with new wonder substance graphene, a material with futuristic capabilities that is still mostly in the research stage. Graphene’s potential is immense, though mostly unrealized at this point in time, and Samsung has beaten Apple soundly to the punch with a number of graphene related patents and a head start in research and innovation that would make even Steve Jobs grind his teeth in frustration.

Graphene is a tough substance which is simultaneously transparent and able to conduct both heat and electricity – in fact, its conductivity is far higher than copper or silicon. Most conductive substances are opaque, so the potential of a clear yet extremely conductive material is obvious, especially in the computer and smartphone world. Graphene is made up of a honeycomb arrangement of carbon atoms, and has been known since the early 20th century, though it was only in 2004 that the substance was artificially isolated.

Samsung, the South Korean electronics giant, manufacturer, and bitter rival of Apple Inc. (AAPL), pounced on the new substance. The company has been aggressively pursuing research for some time and has filed several patents to place themselves on a legally strong footing when the inevitable disputes arise. Slightly more than a month ago, Samsung announced a breakthrough bringing commercial production of graphene into reality. Apple, in the meantime, has flooded cash into revolutionizing the use of sapphire crystal in electronics.

Speaking theoretically, Samsung has a major advantage over its Cupertino competitor. Assuming that the potential of graphene is realized in the near future, Samsung is carefully positioned to exploit it. Graphene’s power and versatility makes it an extremely valuable technology that will far outstrip the worth of sapphire, which, at the end of the day, is little more than fancy scratch-proof glass. Samsung stands to reap immense benefits from the tech, and might even reduce Apple to something of a has-been – if graphene works.

Speaking practically, Apple (AAPL) has sapphire technology in the here and now, and Samsung has graphene in the future. An ancient saying declares that a bird in the hand is worth two in the bush. At the moment, the advantage still lies with Apple, because it has a product to take to market and Samsung does not. Apple will also likely have the cash to gain a foothold in graphene should the new research work out, even if it becomes second fiddle to Samsung.