Apple Turning to Samsung as Low Display Yields for Retina iPad Mini Continue

[antbikerjl]

Samsung group would never sell something that makes 3 billion dollars a year, and does R&D that spreads into its other divisions. And gives it a good position in global manufacturing, its to valuable to sell.

Even if Apple made an offer, Samsung Group will match it and then some. As has been stated, Samsung Group is not publicly traded, and does not report total profits to the public. With the size of Samsung Group, they are a much larger company than Apple, and can easily match any predatory buyout that Apple would attempt. Not that Apple ever would, there is no point.

^ This...

Make the distinction that Samsung 'vertical integration' is commonplace within its entirety. All divisions help one another in some way, shape, or form. Being that the Display division and also their Mobile Division are massive profit-centers with little liability, it would be foolish to give up.

I honestly believe that if Samsung truly wanted to, they would be the ones to buy Apple, not the other way around. They most likely have the capital (one that far exceeds Apple atleast) to make such a bold decision.

 

[KPOM]

Samsung group would never sell something that makes 3 billion dollars a year, and does R&D that spreads into its other divisions. And gives it a good position in global manufacturing, its to valuable to sell.

Even if Apple made an offer, Samsung Group will match it and then some. As has been stated, Samsung Group is not publicly traded, and does not report total profits to the public. With the size of Samsung Group, they are a much larger company than Apple, and can easily match any predatory buyout that Apple would attempt. Not that Apple ever would, there is no point.

Who is saying it would be predatory? It could be a friendly deal. I do agree that LG and/or Sharp would be easier because Apple could make a hostile bid.

Granted, Apple would be making a significant strategic shift if they acquired manufacturing capacity. However, anything is possible. Apple's mastery of the supply chain under Tim Cook (primarily while he was COO) has served them well, but it had the unintended effect of building up what has become their largest competitor.

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^ This...

Make the distinction that Samsung 'vertical integration' is commonplace within its entirety. All divisions help one another in some way, shape, or form. Being that the Display division and also their Mobile Division are massive profit-centers with little liability, it would be foolish to give up.

I honestly believe that if Samsung truly wanted to, they would be the ones to buy Apple, not the other way around. They most likely have the capital (one that far exceeds Apple atleast) to make such a bold decision.

Samsung doesn't have the capital to purchase Apple. Apple is still by far the most valuable private company by market cap. Perhaps some Chinese state-owned company theoretically would have the capital to buy Apple, but that would run into significant political opposition.

I'm not suggesting that Apple make a hostile (or friendly) bid for all of Samsung. All I'm saying is that Samsung Display is an underperformer within Samsung Group, and it is not inconceivable that they might want to sell it one day.

 

[antbikerjl]

[/COLOR]

Samsung doesn't have the capital to purchase Apple. Apple is still by far the most valuable private company by market cap. Perhaps some Chinese state-owned company theoretically would have the capital to buy Apple, but that would run into significant political opposition.

I'm not suggesting that Apple make a hostile (or friendly) bid for all of Samsung. All I'm saying is that Samsung Display is an underperformer within Samsung Group, and it is not inconceivable that they might want to sell it one day.

We do not know Samsung Group's capital as it has never been, and never will be disclosed (as it is legally not bound to, nor would they want to disclose). That is the benefit of being a privately owned conglomerate. Apple is NOT a privately held company, so it must disclose its capital to its shareholders. It only discloses its capital to the public (non-shareholders) to entice people to buy its shares... Market Cap ultimately means NOTHING in this scenario, so people need to stop bringing it up as it is does no correlate to true capital ownership of the company at-large. It only demonstrates stock value, not capital owned by the corporation. Samsung Group has no market cap because it is not ON the stock market to begin with, only some subsidiaries are...

I still firmly believe Samsung Group as an entity has substantially more capital than Apple. I just wish we could prove so, but we'll probably never know.

 

[kdarling]

What Samsung Group has in cash is unknown.

The Samsung Electronics division had over $40 billion in cash ($28.5 billion after debt) last May, and it had tripled in just one year.

WSJ - May 2013

 

[MultiMediaWill]

aware. repped.

yes glad someone is a weir

 

[Tech198]

Reckon they'll be another lawsuit ?

 

[HiRez]

The costs to run and maintain such a factory outweigh any advantages...

Why? Is Apple not one of the largest consumers of displays in the world? Are they not constantly having problems with display yields and volumes, causing them to sell fewer products than they could? Are displays not one of the most, if not the most, critical components in most of Apple's products? Are displays not typically the single most expensive component in most of their products? If they can't use them all, they could even sell extra capacity off to others, just as Samsung and LG do.

 

[JOSE891]

A friend of mines friends mother who has a brother that works at NASA said his brother's wife knows a guy in Taiwan that has a nephew that works for a local gas station and this kid also knows the Ping Pong match coordinator at LG. The daughter of that guy is a janitor at a Samsung plant in Vietnam and she said that Some guy at HTC told her that only 1 in 7 "Retina" displays coming off the line actually work but that most are suffering a warpage when made and they don't fit so they hired two brothers that work "Well" together to straighten and trim the panels that are passing test to properly fit the iPad Mini.

This is all hearsay...

 

[antbikerjl]

Why? Is Apple not one of the largest consumers of displays in the world? Are they not constantly having problems with display yields and volumes, causing them to sell fewer products than they could? Are displays not one of the most, if not the most, critical components in most of Apple's products? Are displays not typically the single most expensive component in most of their products? If they can't use them all, they could even sell extra capacity off to others, just as Samsung and LG do.

The cost to build the factory is also incredibly absurd... These factories to make displays and components dwarf the factories that create things such as automobiles. Go visit a Ford plant and you will understand the sheer size. The machines to run and create the components ontop of the cost of the facility (building + infratstructure to power, cool, etc) would very much deplete Apple's $150billion by quite a large amount. I'd wager these factories cost Samsung billions a year to just operate, this is not including staff. Put this into perspective, a time long ago when I was a manager at Best Buy during my early college years, our 35,000 square foot store cost us roughly $52,000 a month just in electrical cost alone. Samsung factory would be several if not tens of millions of square feed with a single machine that probably uses more power to operate than my whole store did. Interesting huh?

 

[Technarchy]

Why is Apple simply not recognizing that they cannot get rid of Samsung as a supplier

Who said that was Apple's intention?

It's safer and smart for Apple to source from numerous suppliers if for no reason other than disaster recovery.

 

[MattDSLR]

they do look great

 

[HiRez]

The cost to build the factory is also incredibly absurd... These factories to make displays and components dwarf the factories that create things such as automobiles. Go visit a Ford plant and you will understand the sheer size. The machines to run and create the components ontop of the cost of the facility (building + infratstructure to power, cool, etc) would very much deplete Apple's $150billion by quite a large amount. I'd wager these factories cost Samsung billions a year to just operate, this is not including staff. Put this into perspective, a time long ago when I was a manager at Best Buy during my early college years, our 35,000 square foot store cost us roughly $52,000 a month just in electrical cost alone. Samsung factory would be several if not tens of millions of square feed with a single machine that probably uses more power to operate than my whole store did. Interesting huh?

There's no doubt it would be very expensive (although not $150B expensive). But again, it's probably the most critical component to Apple, used in most of their products, now and in the foreseeable future. And if the world's richest and most profitable company can't afford to do it, who can? Don't see why it's not possible. As a shareholder, I feel that would be an excellent use of some of that massive pile of cash.

 

[coolspot18]

Why? Is Apple not one of the largest consumers of displays in the world? Are they not constantly having problems with display yields and volumes, causing them to sell fewer products than they could? Are displays not one of the most, if not the most, critical components in most of Apple's products? Are displays not typically the single most expensive component in most of their products? If they can't use them all, they could even sell extra capacity off to others, just as Samsung and LG do.

Because display manufacturing is very capital intensive endeavour. Samsung invested approximately ~10 billion USD in 2011 alone in display R&D, 2.3 billion USD on miscellaneous assets and had sales in excess of 150 billion dollars.

Apple maybe one of the largest users of such technologies, but maintaining such a line of business would be a major cash drain on the company.

Why burn through the cash when someone else can do the same thing for you - and probably cheaper too?

 

[Nimrad]

They really should have addressed this issue publicly. It's the reason they don't have my money for a new laptop. I'm not playing that game on the chance I might get a bad display.

The forums have already proved they are still using screens from 2012 and there is video proof of IR problems on some of the late 13's. If they would just acknowledge they are fixing the problem I would be happy to buy a new macbook.

Why would that help you? I see no reason to go public with stuff like this. Just get it fixed.

 

[tech4all]

Samsung is evil.

And that's the reason why Samsung are evil.
Copy after release, that's bad.
Copy by being frienemy, that's evil.

Well you both better have super hero capes to defeat the evil Samsung!

Our you could be like the power rangers and summon the iZords to defeat Lord Zedds evil plan to take over the world!