Apple Reportedly Relying More Heavily on Samsung for iPhone 6 and Apple Watch Components

jayducharme said:
"Keep your enemies closer."

Now that Samsung's own phone market is tanking, they might be relying more than ever on Apple to help pay the bills.
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Pay the bills?

Uhhhhhhh, you are aware that Samsung is a multi-billion dollar worldwide corporation that makes much more than just smartphones, right?

Geez, if it's not reported on MacRumors then it's not worth knowing, is it?

Here, educate yourself.

http://www.samsung.com/us/shop/
 
nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.
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Samsung is a division based company. Each part of the company operates seperately and the phone devision has to buy their components from the Silicon division etc - probably at the same bulk prices Apple would pay.

Samsung themselves are not that evil. The original phone division was in the way it copied to get themselves in the market quickly. They have done this before with Washing machines and Fridges etc.

But they are very good at research and development of those ideas. And they are incredibly good at manufacturing components.
 
apolloa said:
I love posts like this, they totally ignore the fact if Samsung stopped supplying Apple then Apple would go down too. Fact is no one can match Samsung for supplies otherwise Apple would be using them.
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1. I bet there are contracts in place, and stopping to supply Apple would cost Samsung a lot more than it costs Apple.

2. Refusing to sell to Apple would make Samsung a pariah in the industry. _Nobody_ would buy their parts if it can be avoided at all. Other suppliers would pick up the slack. Samsung Electronics would have Samsung Mobile as their sole customer. Not something that Samsung can afford when their profits dropped 70% already.
 
69Mustang said:
Not even sure why this would surprise anyone. For all the vitriol surrounding Samsung and their devices, has there ever been a question of their abilities as a parts supplier? As long as the final product is reliable, who really cares if the internals come from Samsung. Obviously Apple doesn't, so why should anyone else?
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It was from Steve. It was part of the you copied me, no you copied me. So, Apple tried to pull its reliance on Sammy away.

Guess that's been harder and not as efficient as they thought.

Every year I hear, TSMC is getting the contract. Then something happens. Just stay with what's working. If it's not broke, don't fix it?
 
gnasher729 said:
1. I bet there are contracts in place, and stopping to supply Apple would cost Samsung a lot more than it costs Apple.

2. Refusing to sell to Apple would make Samsung a pariah in the industry. _Nobody_ would buy their parts if it can be avoided at all. Other suppliers would pick up the slack. Samsung Electronics would have Samsung Mobile as their sole customer. Not something that Samsung can afford when their profits dropped 70% already.
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I just love the theories that armchair business majors come up with here on this site...
 
nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.
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If you see no differences other than price, then that certainly qualifies you as a Samsung customer. QED
 
MacRumors said:
Apple touts the Apple Watch as using a new "S1" module for the internals that seals nearly all of the internal components into a single resin-filled package for durability. The individual components of the S1 are undoubtedly being provided by several different manufacturers, but according to today's report the main application processor portion will be coming from Samsung.
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I'm surprised that Apple didn't make Watch waterproof. It seems fairly easy to do.
 
apolloa said:
I love posts like this, they totally ignore the fact if Samsung stopped supplying Apple then Apple would go down too. Fact is no one can match Samsung for supplies otherwise Apple would be using them.
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It would probably take more time for Apple to ramp up production using their other suppliers, which mean that Apple would make less money instead of making gazillions of money.
 
nt5672 said:
It was rhetorical, but makes the point, none-the-less. It devalues the Apple brand in the eyes of many non-critical users (almost everybody these days).
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It does nothing of the sort. It only demonstrates the endemic stupidity of "almost everybody", because the perception that two factually different things are the same is the very definition of "stupidity."
 
winston1236 said:
I don't understand how some here don't see that international business isn't comparable to high school politics.
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What I don't understand is how some people here get so defensive when they find out Apple is using Samsung components in their products that they immediately have to turn it into a Apple vs. Samsung fight.

Gotta support the team, I guess...
 
nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.
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sure. buy all the samsung parts and assemble them together?
or somehow get the apple processor designs and send them to samsung to fab directly? what?
 
nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.
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Um. Sure. Feel free to order one of each OEM part and piece together your own Apple product.. without access to their manufacturing plants or the parts they use themselves :rolleyes:

This might be the most ridiculous post I've read this month.
 
a0me said:
It would probably take more time for Apple to ramp up production using their other suppliers, which mean that Apple would make less money instead of making gazillions of money.
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A more apt description is that Apple's growth requires more vendors, hence the Samsung/Global Foundries partnership and TSMC building processors. If anything, Samsung's huge drop in profits for smartphones places Samsung less a direct competitor of Apple and more a delineation of the iOS market from the rest of the market, primarily Android/Android forks. Samsung will continue selling more smartphones that Apple, but its ASP for each device is impacted from the top by Apple and from below by the Chinese OEM's. If anything, it might be stated that Samsung is a bulwark against Apple seeing market loss in the high end as Samsung actually has to defend its position without the benefit of its own operating system, a difficult task and not really benefitted by advertising against Apple.
 
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Apple is not a hardware company, it is a design and marketing company dependent on others to make parts they like and which are cheap enough and then on other companies to assemble them.

It is brilliant that they managed to pull this off and might become a trillion dollar company.
 
carlgo said:
Apple is not a hardware company, it is a design and marketing company dependent on others to make parts they like and which are cheap enough and then on other companies to assemble them.

It is brilliant that they managed to pull this off and might become a trillion dollar company.
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How is that different from Dell, Toshiba, HP etc.

ALL modern computers are assembled by Foxconn or Quanta.

Same goes for the PS4, Xbox One, etc etc.
 
nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.
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Because I product is more than the sum of its parts.


"I thought you would have figured that out by now..."

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Rogifan said:
I know this is a rumors site but it always amazes me how any rumor posted here gets treated as fact by people in the comments sections. The WSJ recently reported that Galaxy S5 sales were 40% below estimates and organizational changes were coming at Samsung Electronics. It wouldn't surprise me at all if Samsung or someone looking to pump up the stock would put out a rumor like this.
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I hear you, but I think in this case, Samsung dropped their prices in desperation to at least have SOMETHING going on. Their IT/Mobile division is in the toilet.
 
apolloa said:
I love posts like this, they totally ignore the fact if Samsung stopped supplying Apple then Apple would go down too. Fact is no one can match Samsung for supplies otherwise Apple would be using them.
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And why would Samsung stop supplying Apple? The division that supplies Apple has a separate CEO from the division that designs and sells mobile devices. He has an incentive to boost his division's profits, and selling to Apple is an important part of that. The rumor is that Samsung may be replacing the mobile device CEO with the head of the division that makes appliances (meaning the division that supplies Apple would still have a different CEO).
 
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