Other than the huge legal clash over design, it's easy to see why Cupertino is keeping a close eye on Samsung. The South Korean powerhouse is selling more smartphones than Apple, with 45.6 million units shipped in Q2 compared with about 29 million iPhones. What's really scary is that Samsung is innovating faster than Google itself, from pen input on the Galaxy Note phone and Galaxy Note 10.1 tablet to unique features like Buddy Photo Share on the Galaxy S III. The proof is in the pudding: 10 million sold in less than two months. Samsung also has a huge start in smart TVs. Add in a growing content ecosystem and you have lots of reasons for Tim Cook to watch his back.