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Apple Set to Become Samsung's Biggest Customer With $7.8 Billion in Contracts
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I said that they are equivalent. I never said (nor implied), that it was based on Apple's design.
Samsung making more money from the iPad and iPhone than their own competing devices could definitely be a factor in business decisions they make down the road. I like it.
I believe samsung sets price point of Galaxy stuff so that it doesn't undercut Apple too much, in order to protect their profit from Apple as Samsung's customer. I read people saying
"never thought Apple could compete on pricing but they do"
aren't quite well informed imo.
I agree. Samsung can easily match Apple iPhone and iPad features by supplying all the parts to Apple. In the long run it is not good to Apple.
This is like Asus that is making iPad. Asus also tries to make tablets for itself.
Samsung's bread and butter is HDTVs and Blu Ray disc players, two markets in which Apple has no presence at all.
For confusion sake,
people should understand that Samsung as a whole works as independent division looking for lowest cost for their components. If nand is cheaper outside of the Samsung's Nand division, then Samsung mobile will go buy Nand from another company even if the company is a rival one. Samsung is really like 100 billion companies.
So it would sound weird for Samsung who competes with Apple in certain markets to supply them components but to them, its all about the bottom dollar and they will supply to anyone.
Money is money to them.
people should understand that Samsung as a whole works as independent division looking for lowest cost for their components. If nand is cheaper outside of the Samsung's Nand division, then Samsung mobile will go buy Nand from another company even if the company is a rival one. Samsung is really like 100 billion companies.
So it would sound weird for Samsung who competes with Apple in certain markets to supply them components but to them, its all about the bottom dollar and they will supply to anyone.
Money is money to them.
I jumped to the wrong conclusion because SO many people think Apple designed A4 (tweaked probably but not designed) and Samsung is just a contract manufacturer when in reality samsung had a hand in designing A4.
I see lilo777 is still hard at work trying to foment discord and agitate the MacRumors community.
Interestingly, he/she has also taken his/her bitter anti-Apple agenda to Engadget, where the audience is more receptive (to say the least).
Keep on hatin'.
Interestingly, he/she has also taken his/her bitter anti-Apple agenda to Engadget, where the audience is more receptive (to say the least).
Keep on hatin'.
Each division/group/team/factory within Samsung is most likely responsible for generating profit and meeting internal targets. The component people aren't going to favor internal sales over external sales. So all the margin pressure will be on the Value Adding teams in Samsung like the design team for the tab. These teams will also be pushes to use young tech like OLED to try and drive demand for those and to cover the cost of maturing the tech. Yet they'll still be expected to deliver a return which is why their not going to uncut anyone by to much unless poor sales say they need to.
Then again Apple has big piles of cash and can pre-buy bucket loads of new-tech which is how they compete on price tying up enough supply to get themselves a good deal and making it harder for others to do the same.
Still Samsung with supply contracts to Apple/Sony/others are in a really good place, they own need a small amount of success on their own products to be a very sustainable company.
I'm sure your theory will be proven correct when RIM, Motorola, LG, Toshiba, et al release iPad equivalents priced significantly lower than the iPad.
Or not.
How About using more American Components?
How About Apple trying to use more Apple and American companies components?
How About Apple trying to use more Apple and American companies components?
I'm sure your theory will be proven correct when RIM, Motorola, LG, Toshiba, et al release iPad equivalents priced significantly lower than the iPad.
Or not.
Which one of those makes the components Apple buys while making 'copycat' (as some say) products (Galaxy S, Tab)?
This is win-win for Samsung. If people aren't buying Apple products stuffed to the gills with Samsung components, they are buying Samsung devices instead. Either way, Samsung turns a profit.
Agreed. If Apple bolted from Samsung over charges that Samsung defrauded Apple by giving them junk parts.
1. Apple would take a sizebale chunk of the $20+ billion it has left and sue Samsung into the last century.
2. Samsung's other customers may wonder if they got screwed and possibly leave, as well.
It's not like it could say. "We only meant to ******* over Apple, not you. We love your money...err, I mean you."
As much as a division of Samsung will compete tooth and nail with Apple products, its component divisions will do everything and then some to make sure those checks from Apple continue to roll in. The possible nuclear devastation of Apple ripping its $8billion contract and going to Fujitsu, Matsushita, etc is enough of a scare to keep Samsung playing smart.
Samsung does more than make little iPad screens. Samsung is the largest company in Korea because it does everything. It builds micro-processors, TV's, Battleships, Engines, and Large Scale constructions (one of the Petronas Towers was built by Samsung.)
Don't spin Samsungs success on Apple.