Samsung finds parts of Galaxy Tab 10.1 'inadequate' compared to iPad 2.

[kdarling]

Also with a big conglomeration like Samsung, you have departments competing for each other as profit centers. For instance Samsung is manufacturing Apple's A5 chip but the same factory also makes the chips for the Samsung mobile department.

What I've heard is that Apple's order has filled the factory to its capacity and the Samsung mobile division is having hard time getting their own chips. However when you're the head of the chip-making division, you do what's best for you, which is catering to the largest customer, Apple.

Yep, exactly my point, which is that Samsung overall is happy whether or not their phone and tablet divisions sell more than Apple.

Samsung's semiconductor division is selling all it can make, both internally and to Apple et al.

That's what makes Apple unique. They love to stay lean because they are greedy and love to get higher ROI, but my impression is they also hate having development teams that are too large and unwieldy. (see Nokia) which I think is an important part of their success.

Well, it's also what makes Apple extremely dependent on others. If Samsung and LG ever decided to cut them off, Apple would be in a world of hurt production-wise.

 

[fertilized-egg]

Yep, exactly my point, which is that Samsung overall is happy whether or not their phone and tablet divisions sell more than Apple.

Yes, but selling expensive high end mobile phone is probably a lot more profitable than selling components. LG lost a lot of money because they missed the smartphone gravy train.

Well, it's also what makes Apple extremely dependent on others. If Samsung and LG ever decided to cut them off, Apple would be in a world of hurt production-wise.

Which is unlikely to happen as Apple has already made deals and invested in multiple suppliers and there are many many suppliers who'll be only too happy selling millions and millions of chips to Apple if Samsung doesn't want to. The components are quickly become commodities that can be supplied from a number of companies, not just one. I suspect this is one of the reasons Apple didn't go for AMOLED because that would've meant Apple gets stuck with Samsung as the only viable source of display for a while.