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So according to this chart Apple has already bought $5billion more on semiconductors halfway through 2011 than it had through all of 2010? Something fishy here

No... ipad and iPhone sales are very strong. Plus Mac sales continue to grow... so Apple is buying way more than it has in the past.
 
So according to this chart Apple has already bought $5billion more on semiconductors halfway through 2011 than it had through all of 2010? Something fishy here

No, the linked article says that the 2011 numbers are what they expect to see happen. It's an estimate at this stage, but it represents a full year and is thus a valid comparison to previous years.
 
No, the linked article says that the 2011 numbers are what they expect to see happen. It's an estimate at this stage, but it represents a full year and is thus a valid comparison to previous years.
Ok. 2011 numbers are projected for full year. That makes much more sense.

No... ipad and iPhone sales are very strong. Plus Mac sales continue to grow... so Apple is buying way more than it has in the past.

Not so much see above.
 
So Samsung could bring out there own device and have an almost zero purchase cost as they would make most of the internals themselves.

No, they wouldn't have "almost zero" purchase cost. Creating silicon isn't cheap. There are immense investments to be made, and the production is definitely not free either. If Apple and Samsung use the same Samsung chip, then Samsung's cost is probably more than 95% of Apple's cost. If Samsung tried to charge Apple $100 for something that costs $90 to produce, then Toshiba would offer the same item for $95 and Apple would buy that.
 
No, they wouldn't have "almost zero" purchase cost. Creating silicon isn't cheap. There are immense investments to be made, and the production is definitely not free either. If Apple and Samsung use the same Samsung chip, then Samsung's cost is probably more than 95% of Apple's cost. If Samsung tried to charge Apple $100 for something that costs $90 to produce, then Toshiba would offer the same item for $95 and Apple would buy that.

yes... it's a high volume, low margin business. If it's a commodity good or service typically you have to get as many orders as you can, and control costs like crazy. You may have to bring in $50 billion in orders, just to make $1-2 billion and one mistake will cost you all your profits... that's why often they locate in areas like Taiwan, where the costs are a bit lower but the service quality is still quite high.
 
Obvious questions: 1. What counts as "semiconductor"?

Everything that conducts a quarter more than a quarter conductor or 50% less than a full conductor.

It is also important whether the conductor is for an orchestra or a train.

Some conductors won't let anything through without a ticket, which makes them a non- conductor.

I just can't get excited about anything iSupply reports. Especially when it's incomplete.

They usually mention that the average price is only 12 cents give or take 2 cts.
 
This is so exciting!!! I can't wait to tell everyone who owns HP and Samsung products. They will be absolutely crushed!! I won't be surprised if Apple is soon challenging the US government for the amount of paper clips and pens being purchased. This is just another example of Apple's world dominance.
 
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