Samsung Reportedly Hits Apple with 20% Price Increase for iOS Device Chips

[samcraig]

Originally Posted by StarPower

Screw Samsung. Calling BS on this article. But even if true, this will screw Samsung in the end. Those shady thieves deserve it.

Please explain how Samsung will be getting screwed. I think you believe that Samsung doesn't have any foresight into what lies ahead with their relationship with Apple. Do you really think they didn't think this through or have more information at their fingertips than you?

[rmwebs]

Originally Posted by barkomatic

They might notice when their iPhones are made out of plastic again to save costs.

I welcome the return of the plastic iPhone. The 3g/s was by far the nicest design IMO.

[Iconoclysm]

Originally Posted by Petraeus

Samsung makes the BEST parts in the world.

it will only hurt apple in the long run to source out different components.

samsung doesnt care their mobile business is set to rival apples by that time


There is a GOOD reason why samsung is the ONLY successful android manf. in the world. They are the only ones who can rival apple in costs and quality.

Samsung makes average parts....don't know where you're pulling that from.

----------

Originally Posted by rmwebs

I welcome the return of the plastic iPhone. The 3g/s was by far the nicest design IMO.

Samsung agrees.

[rmwebs]

Originally Posted by Iconoclysm

Samsung makes average parts....don't know where you're pulling that from.

and where the hell are you pulling the 'average' from? Apple buy from Samsung because they are the only company able to produce quality parts in such huge numbers.

We get it - you hate Samsung, but spreading complete fud just makes you look silly.

[Bendrix]

Originally Posted by andyjam

I heard Apple have bought Alaska and have started setting up some missiles pointed right at Korea... I can't think why though.

South Korea and the US are allies. This is business, not military warfare.

[Dwalls90]

Originally Posted by Hellhammer

That's the lesson Apple needs to learn. Samsung produces everything from LCDs to NAND and SoCs which makes them independent, whereas Apple doesn't own a single factory. Without Samsung, Apple couldn't make a single iPhone or iPad but Samsung would do just fine without Apple, so who is feeding who?

No.

Is Samsung a high quality supplier? Yes.

Can Apple easily replace them, as they slowly have been doing for years now (i.e. Sharp)? Yes.

When Apple dumps Samsung, Samsung loses about 10% of their component supply revenue. Apple just switches suppliers, which there are many of, and is financially fine.

Originally Posted by 1080p

From What I understand, Apple and Samsung have a contract for chips until 2014. Wouldn't prices be negotiated and set before signing any long term contracts? Calling BS on this article!

I agree. With such large volumes of chips, surely these prices are fixed in a contract somewhere ...

[samcraig]

Originally Posted by rmwebs

and where the hell are you pulling the 'average' from? Apple buy from Samsung because they are the only company able to produce quality parts in such huge numbers.

We get it - you hate Samsung, but spreading complete fud just makes you look silly.

No - he's saying that Apple doesn't really care about the electronics in their own devices. That Apple settles for "average" not "excellence"

At least that's what I read

[axual]

Memo to Tim C.

Please use $1 billion or so of our collective cash and build a chip plant (in the US preferably).

Thank you.

A Shareholder.

[Iconoclysm]

Originally Posted by rmwebs

and where the hell are you pulling the 'average' from? Apple buy from Samsung because they are the only company able to produce quality parts in such huge numbers.

We get it - you hate Samsung, but spreading complete fud just makes you look silly.

Ahh, I see that "average" is fud but the opposite is just being rational?

Samsung's parts are just like everyone else's, they don't use special materials and they aren't any less prone to failure. Yes, the specific part in question they can provide in higher volumes than the competition.

BTW, I don't "hate" anyone.

[rmwebs]

Originally Posted by samcraig

No - he's saying that Apple doesn't really care about the electronics in their own devices. That Apple settles for "average" not "excellence"

At least that's what I read

Haha good point!

[samcraig]

Originally Posted by Dwalls90

No.

Is Samsung a high quality supplier? Yes.

Can Apple easily replace them, as they slowly have been doing for years now (i.e. Sharp)? Yes.

When Apple dumps Samsung, Samsung loses about 10% of their component supply revenue. Apple just switches suppliers, which there are many of, and is financially fine.



I agree. With such large volumes of chips, surely these prices are fixed in a contract somewhere ...

A) Samsung can resell the chips to someone else - and possibly for a higher negotiated rate

B) Contracts often have riders and/or section which discuss price increases and/or "revisits" to the pricing structure. It's nothing new or unexpected.

[Iconoclysm]

Originally Posted by samcraig

No - he's saying that Apple doesn't really care about the electronics in their own devices. That Apple settles for "average" not "excellence"

At least that's what I read

You read poorly.

We weren't talking about the one or two parts that Apple buys, we're talking about everything Samsung makes.

They're average quality, which is not an insult by any means.

[newdeal]

Apple is likely going to purchase TSMC outright if possible since they wouldnt give them exclusive access to chips

[Iconoclysm]

Originally Posted by rmwebs

Haha good point!

I smell hater love!

[ajvizzgamer101]

This "war" has gotten less away from iOS vs Android and more about Apple and Samsung. Either way it's time to end all ties with Samsung. HTC and Microsoft both came to agreements with Apple about iOS technology like responsible companies. Apple settled with that Swiss Clock company like a responsible company. Samsung on the other hand refuses to license anything they stole from Apple, and cries every time Apple sues their ass and ask what did we do wrong. I hate Samsung's business ethics and I hate their crappy plastic products.

[Iconoclysm]

Originally Posted by samcraig

A) Samsung can resell the chips to someone else - and possibly for a higher negotiated rate

B) Contracts often have riders and/or section which discuss price increases and/or "revisits" to the pricing structure. It's nothing new or unexpected.

Samsung can't resell an A6/A6X, period.

[samcraig]

Originally Posted by Iconoclysm

I smell hater love!

Yes. Because everything in your world is so black and white. Good luck with that.

[Krazy Bill]

Originally Posted by thekris1234

So your saying that just because Samsung provides Apple with components, which Appleays for, it is ok for Samsung to rip off their products?

So say 12 idiots. I don't think 12 clueless people should have that much power. These types of cases should be arbitrated by qualified people.

Jury of "peers" my arse.

[Bendrix]

Originally Posted by i.mac

Ok. Let us see how you do it in Korea:

1. Americans guard your borders
2. Americans design the products that your companies "innovate" (looking at you samedung).
3. Americans buy your products

And then you call others 'bastards'. Yup, that's how Korea does it...

South Korea also has its own military. All able-bodied men are conscripted. It's also in America's interest to have allies and a presence in that region. The American military is not there for purely humanitarian reasons.

Samsung vs. Apple is not Korea vs. US. Such jingoism here among the juvenile Apple boys.

[SgtPepper12]

supply and demand.

[samcraig]

Originally Posted by Iconoclysm

Samsung can't resell an A6/A6X, period.

True. But Samsung can take the time and resources using to produce those chips and make others that can be.

You seem to think that if Apple drops their order that Samsung is just going to twiddle their thumbs and lose business vs creating another revenue stream. Yeah. Ok.

[Iconoclysm]

Originally Posted by samcraig

Yes. Because everything in your world is so black and white. Good luck with that.

It most certainly is not, but you might want to check yourself and your previous comment before you go projecting that.

[TallManNY]

Originally Posted by Tigger92

You know...its amazing how you think that Apple is the only one at fault here.

While they are quite aggressive with fighting Samsung...Samsung is not exactly innocent in this "petty war". They did copy their design.

By the way...you should keep in mind that Samsung is not a former partner and so far, you have no clue if this will hurt Apple's customers. I seriously doubt that this will cause a price increase to any of the products currently available.

Agreed. It definitely won't cause a price increase in the US. Those prices are clearly set at round numbers and they really don't move for small changes. Apple is just going to have to pay this and work harder to establish compteing suppliers.

[Mr.damien]

Originally Posted by Hellhammer

That's the lesson Apple needs to learn. Samsung produces everything from LCDs to NAND and SoCs which makes them independent, whereas Apple doesn't own a single factory. Without Samsung, Apple couldn't make a single iPhone or iPad but Samsung would do just fine without Apple, so who is feeding who?

Without Apple, Samsung should be still selling 10 phones each month and RIM being the King.

Without Apple, Samsung should not have all the money to build all those factories.

That's why they already stopped the build of their next generation CPU factory in the south of Korea: because they lose Apple.

And it's also why Sharp is not dead yet: because Apple is funding them now with TMSC. Apple is now funding the biggest competitor of Samsung.

We will see how Samsung will handle that: losing money on one side, while this money is used to boost competition

[Sora]

Originally Posted by barkomatic

They might notice when their iPhones are made out of plastic again to save costs.

According to CNET Citation: iPhone Pricing $167.50

The cost of the A6 processor: $28
A 20% increase: $5.60
Total build cost: $173.10

Oh noes....a whole $5.60!!! That's 1 tall soy caramel brule latte at Starbucks! Oh noes!!!

Seriously folks. There is nothing to see here.
The customer won't see this increase.
Samsung is only showing Apple how important it is that they find a new manufacturer.