ArtOfWarfare
macrumors G3
I sell my app globally. If I had a partner like Samsung, I'd consider this price hike to be extra incentive to migrate to other suppliers at a quicker rate than otherwise.
What global company do you run?
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Samsung Reportedly Hits Apple with 20% Price Increase for iOS Device Chips
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What global company do you run?
My prediction
I've put up a lot of feeble but fun predictions on this board over the years. I think nearly every single one of them turned out not happen. ( though I really wish my "Apple will create their own cable TV via 4G LTE" prediction worked out )
But I love dreaming, so here's a new prediction...
I think this chip price hike is a sign that Samsung is about to settle with Apple. Samsung recognizes the situation is sticky with Apple, and is preemptively raising the prices on Apple while it has the advantage in producing the CPUs. After raising the CPU prices, Samsung will then conceed to a licensing settlement on similar terms to HTC. The raised prices on CPU will offset this settlement ( somewhat ) and keep investors happy.
My guess is right after the Holidays...probably in early January we'll see a thoughtful and grand press release about Samsung and Apple's new business relationship.
Can I please have this Christmas wish? oh please, oh please, Santa?
I've put up a lot of feeble but fun predictions on this board over the years. I think nearly every single one of them turned out not happen. ( though I really wish my "Apple will create their own cable TV via 4G LTE" prediction worked out )
But I love dreaming, so here's a new prediction...
I think this chip price hike is a sign that Samsung is about to settle with Apple. Samsung recognizes the situation is sticky with Apple, and is preemptively raising the prices on Apple while it has the advantage in producing the CPUs. After raising the CPU prices, Samsung will then conceed to a licensing settlement on similar terms to HTC. The raised prices on CPU will offset this settlement ( somewhat ) and keep investors happy.
My guess is right after the Holidays...probably in early January we'll see a thoughtful and grand press release about Samsung and Apple's new business relationship.
Can I please have this Christmas wish? oh please, oh please, Santa?
But the difference is - Apple's not really threatened by HTC as a competitor.
I'm not saying Samsung and Apple couldn't/shouldn't work things out and that I (and many others) would be happy about it. I'm just saying I think it's less likely.
I'm not saying Samsung and Apple couldn't/shouldn't work things out and that I (and many others) would be happy about it. I'm just saying I think it's less likely.
Since the targeting systems for the late Jobs' thermonuclear war against Android have focused squarely on Samsung, executives at Sammy have probably known for a while that Apple would be shifting all of its supply contracts away from Samsung as soon as it was feasible for Apple to do so. Since TSMC and other suppliers still can't fill the volume required by Apple's popularity, they are forced to continue including Sammy for the time being. Since Samsung is getting dumped anyway and knows it, they have no reason not to hit Apple with price increases.
The only reason they didn't do it sooner is probably written into the supplier contracts.
The only reason they didn't do it sooner is probably written into the supplier contracts.
Everybody saying Samsung are stupid and Apple will just move elsewhere. You are so wrong.
At the present moment Samsung have Apple by the short and curlies. Other than Intel and AMD no one has the fabrication facilities to produce the amount Apple want or needs. Intel produce their own mobile chips and AMD aren't going to do Apple any favours.
No-one else can produce the quality of product. This is how suing a major component supplier will come back to screw Apple.
If Apple had offered reasonable terms when this all began - instead of offering terms hey knew would never be accepted - then this wouldn't have happened.
At the present moment Samsung have Apple by the short and curlies. Other than Intel and AMD no one has the fabrication facilities to produce the amount Apple want or needs. Intel produce their own mobile chips and AMD aren't going to do Apple any favours.
No-one else can produce the quality of product. This is how suing a major component supplier will come back to screw Apple.
If Apple had offered reasonable terms when this all began - instead of offering terms hey knew would never be accepted - then this wouldn't have happened.
THIS^^^ plus if Apple do move slowly totally to a new mfr like tsmc do you really think Samsung wouldn't get wind and re-adjust the pricing/agreement or whatever again for the time they could ??
Plus the really sad thing is the diversity of products Samsung make and most people on this thread seem to think they will go down the crapper because of this one agreement really ??? have you seen the breadth of the Samsung group compared to apple ?
I think Samsung personally would be better making a global unilateral settlement with apple and telling them to shove it !!
Just my opinion , as always !!
James
That's exactly what is happening here and is the impetus behind Samsung's price increase.
oh yeah i get that , i am just saying if no-one could follow up with a decent proposal to take over production at all say for 12-18 months , then whats to stop Samsung hiking the price again ?
I think both companies need to just finalize this once and for all globally and stick to what they do best , selling decent products
Looks like it may be time for Apple to think about increased in-house manufacturing capabilities. Tim, please open up some Apple manufacturing in the United States.
If I were in charge of Apple, I'd probably just say "fine". And try to get some (limited) supply at others - even when their prices are higher. That is, of course, if we are talking about the traditional Apple: creating products just because they love it, and not creating products to satisfy analysts and shareholders.
It's a low move from Samsung to demand higher prices when you know your customer can't go anywhere else and absolutely needs your product.
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Only TSMC can do that, but they don't want to be dependant on one customer and prefer to have lots of customers (like they have now), so if one of them falls away, it doesn't have a huge impact on their profits.
It's a low move from Samsung to demand higher prices when you know your customer can't go anywhere else and absolutely needs your product.
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Only TSMC can do that, but they don't want to be dependant on one customer and prefer to have lots of customers (like they have now), so if one of them falls away, it doesn't have a huge impact on their profits.
Apple will probably be supplying many of its own components soon:
http://www.forbes.com/sites/connieguglielmo/2012/04/17/apples-secret-plan-for-its-cash-stash/
http://www.forbes.com/sites/connieguglielmo/2012/04/17/apples-secret-plan-for-its-cash-stash/
KnightWRX
macrumors Pentium
Wow, are you comparing your little "business" selling a battery monitoring app on the App Store to running a world wide conglomerate ? 😱
If you had a partner like Samsung, you'd have contracts and the terms in those contracts would be things you agreed on. If Samsung is raising prices, it's in the contract under a provision.
How is it a low move? Apple deserves it, after all the things that they have done recently. Apple started the "petty" war, and now its going to have to pay out the nose for it.
dukebound85
macrumors Core
jrswizzle
macrumors 603
Ha - not really cowboy. I generally think about things BEFORE making decisions/posting to internet forums. Something I would say a majority of people don't do enough of - so I guess you'd be correct in that regards.
Still, I stand by my initial hypothesis. At the basis of every decision lies a series of yes/no questions. Each person will answer a specific way and then defend said answer, as you so eloquently stated, based on various inputs - experiences, emotions, beliefs. NONE of this changes the fact that the brain makes small yes/no decisions to ultimately reach a more complex answer.
I wonder how, in your world, those decisions are made in the first place? I don't deny rationalization takes place - my statements never mentioned any thought processes after the decision, rather the conversation was regarding the core of decision making - before the decision. I suppose answers to decisions just come to you out of nothing and you rationalize the decision that came from nowhere based on your beliefs?
KnightWRX
macrumors Pentium
A bunch of automates. Sorry, I don't do a "series of yes/no questions", because then I'd have a bunch of yes/no answers and no actual decision that got made.
HOW THE **** DID I IMPLY THAT?
I made a suggestion on how apple could get away from them with little pain.
GO **** YOURSELF "DOOD" [SIC]
Contracts can be on a year to year basis.
Say they have a 5 year contract, they may be locked in with one another but every year they can re-evaluate on both sides and do adjustments within agreement by both parties. Really depends on how the contracts are written.
They could literally put in the clause "if one of your Samsung employees gets an erection from looking at one of our A6 chips" future contracts will cease! Obviously there are some legal limits but the rules under the contract can vary widely.
Working logistics the contracts are generally 5 years but yearly reviews to ensure the company contracted is performing to expectations.
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Quality Control has been terrible at Apple with SAMSUNG since about 2007..I can just imagine where it is headed when they use partners like LG.
..which one has to wonder when Apple is going to take their ass to court because of the LG Nexus 4 coming out...I'm sure there is some shape in the software that violates some absurd patent Apple has.
..which one has to wonder when Apple is going to take their ass to court because of the LG Nexus 4 coming out...I'm sure there is some shape in the software that violates some absurd patent Apple has.
jrswizzle
macrumors 603
Oh boy *sigh*
If you don't want to read my previous posts on the matter fine. I state multiple times that its a process by the human brain both consciously AND subconsciously. No I don't go through yes/no questions all the time either - but the fact remains my decision can be broken down into yes/no questions at its basest level, much like a computer uses binary code to translate and produce a much more complex "answer".
KnightWRX
macrumors Pentium
Again, sorry but no. The question "Chocolate, Vanilla or Strawberry ?" doesn't become a bunch of YES/NO questions subconsciously for humans like it does for computers.
Otherwise, Neapolitan wouldn't exist.
It's a low move as in: Apple cannot defend itself against this action.
Apple sueing Samsung is different in multiple ways:
- Samsung was able to defend itself
- Apple has an obligation to defend its patents (if it does not defend its own patents, it may lose the rights to those patents (it sounds weird, but it's true))
I like Samsung. It's one of my favourite companies, but this is a low move.
Oletros
macrumors 603
It sounds weird because it is false, you're confusing patents with trademark