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Price isn't the only aspect here. TSMC might not have the resources to fabricate enough chips for Apple, it's used by at least a dozen of other companies, some of which are big names (e.g. NVIDIA, Marvell, Qualcomm). TSMC is already having yield problems with every new process node and taking a huge brand like Apple on board would just make things even more difficult since Apple needs a lot of chips.

You hit the nail on the head!

The A6 is a 28nm chip, and the next generation A7 is a 20nm chip that Apple will have to pay TSMC or some other company big money for. Like bailing out Sharp Electronics with $2 billion for display panels. Samsung can make 22nm chips today like cookies and getting to 20nm will be as easy as pie. Even with higher prices, Samsung will still be cheaper than TSMC and others who make SoCs. Additionally, Samsung fabricates these SoCs in the US, where the others don't. So expect bad publicity for Apple to ship jobs overseas in this weak economy.
 
You are kidding right?

Apple is Samsung's customer, not the other way around.. they're about to lose their most profitable customer in Apple.

I hope Apple completely withdraw all their custom from Samsung. We'll see how Samsung's profits nosedive then.

----------


You are grossly over-estimating Apple's importance to Samsung. Whilst Apple are one of Samsung's biggest customers, Apple still only makes up about 7-8% of their revenue.
 
Theres nothing weird or "dangerous" about it, its perfectly normal for price to increase; contract.

My point is that Apple left themselves in a position where they could not negotiate a better deal because they have no options. 20% is a massive price hike but Apple have no choice but to accept it, Samsung could have said 50% and Apple would still have no choice.
 
Think about the poor software engineer who gives his life at Apple
working 16 hour days developing "gestures" for the touch interface only to have his or her ideas stolen and used by other companies with no royalty paid or cost to the company!!!!

This sad history made me cry :(
 
"samsung doesn't care about Apple"
<snip>
The reason these companies are in business in the first place is they steal American ingenuity and than make inferior inexpensive versions of American
products and because the average American consumer could a give a crap
if their phone is a plastic cheap copy as longer as they save a few dollars.

What innovative product has come out of Korea lately?
IMO Japan and the US spend all the money on innovation, research and
product development and China and Korea take advantage of the work already
done for them without expecting to pay for the technology!
<remaining ignorant rant snipped>


According to the USPTO, Samsung has the 2nd most US Patents granted in 2010 after IBM and ahead of Microsoft. Apple is not in the top 10 US Patents granted.
 
I can't wait to see how much the Fandroids love Samsung after they've wiped out all their competitors in the Android space and become the sole Android hardware provider. Next step: a Kindle-esque Samsung version of Android over which Samsung has complete control.

It's going to be delicious.
 
GREDDY Samsung.....

Another GREDDY company, that means apple will have to raise their prices.
 
Why doesn't Apple just build its own chip foundry?

"just" ... why don't you build them a chip foundry then?

A chip foundry isn't cheap, and requires some of the best, most experienced, most expensive engineers in the business.

Never mind that it takes several years to build a modern fab.

Perhaps here in the USA (I know, horribly naive)?

Let's not forget that Samsung built a foundry, presumed just for Apple's use. In the USA.
 
According to the USPTO, Samsung has the 2nd most US Patents granted in 2010 after IBM and ahead of Microsoft. Apple is not in the top 10 US Patents granted.

Yup I posted the same exact thing.

I guess Samsung stole everyones patents, tricked the system and lied to everyone.

Welcome to xbox live forums.
 
Samsung can't resell an A6/A6X, period.

@ $3.50 per chip increase. Apple only needs to sell just under 300k units for Samsung to make-up the $1B and then some. That will happen by between Black Friday and Christmas. Question is, how much harder are they going to push on their other suppliers to manufacture chips. It it a retaliatory price hike? Most likely.

I can see the Harvard Business Review articles now. Should Apple have sued Samsung? What would have been different if Apple didn't and allowed it's competitors to copy their designs? Oy.


300K units? Better sharpen your pencil or replace your batteries. 300 Million.
 
Maybe this will halfway reduce Apple's staggering mark-up prices on their iOS devices and make their already exorbitant prices somewhat more justifiable.

Apple is charging $400 for a device that costs them $150 to make. That is $250 in Apple's pocket for a device that only costs them $150 to make. That is high mark-up if you ask me!

It's even more staggering for their Macs. Their Retina MacBook Pro 15" machines cost them less than $1200 to make, and they are selling them for $2500+

No more than Bentley, Ferarri et al do with their cars. Or other companies in other industries.
For some reason though people aspire to an expensive car because it's better quality? The Bentley and VW Phaeton are very similar, one is a lot nicer than the other to use/own and people pay a premium for it. Apple products are generally nicer than Samsung products and people pay a pre........ you get the idea.
 
I can't wait to see how much the Fandroids love Samsung after they've wiped out all their competitors in the Android space and become the sole Android hardware provider. Next step: a Kindle-esque Samsung version of Android over which Samsung has complete control.

It's going to be delicious.

Don't think that's going to happen. But if Samsung did wipe out the competition - then it would arguably still be Samsung vs Apple vs Microsoft - which in essence, it is now anyway.

What exactly is your point?

"samsung doesn't care about Apple"
Except that Apple is Samsung's biggest customer! In Fact if you have been paying attention they have recently cancelled plans to build a new fab plant
presumably due to decreasing chip sales!

The reason these companies are in business in the first place is they steal American ingenuity and than make inferior inexpensive versions of American
products and because the average American consumer could a give a crap
if their phone is a plastic cheap copy as longer as they save a few dollars.

What innovative product has come out of Korea lately?
IMO Japan and the US spend all the money on innovation, research and
product development and China and Korea take advantage of the work already
done for them without expecting to pay for the technology!

It seems everyone has a really poor memory! I remember the time before the iPhone came out and no phone had gestures or looked anything similar to the iPhone now every smart phone Samsung makes looks like a clone!
What about tablets? Was samsung making any touch screen based tablets before the iPad came out? Have you ever seen a galaxy in person? If that isn't a direct copy you must be blind and drinking the cool aid of samsung.

Shame on anyone taking the Samsung side that is exactly the underlying reason there has been a decline in this country. Everybody wants things for free or as cheaply as possible and does not recognize or reward hard work and ingenuity!! Think about the poor software engineer who gives his life at Apple
working 16 hour days developing "gestures" for the touch interface only to have his or her ideas stolen and used by other companies with no royalty paid or cost to the company!!!!
Be careful my friends since most manufacturing has already left the US all we have left is our intellectual property and if that is not protected we have nothing!!!

There's so much wrong in what you wrote it's not even worth going point by point to prove how little you know about either company.
 
.

Big deal. So Apple's profit goes down by $3 per device. If one out of every 8 customers buys an overpriced Lightning cable then Apple is even.

Apple's better off paying Samsung than risking a clusterfsck if they move to a 2nd rate supplier that either can't handle the volume or the QC.

See exhibit A: LG and their screens.


:rolleyes:
 
"samsung doesn't care about Apple"
Except that Apple is Samsung's biggest customer! In Fact if you have been paying attention they have recently cancelled plans to build a new fab plant
presumably due to decreasing chip sales!

The reason these companies are in business in the first place is they steal American ingenuity and than make inferior inexpensive versions of American
products and because the average American consumer could a give a crap
if their phone is a plastic cheap copy as longer as they save a few dollars.

What innovative product has come out of Korea lately?
IMO Japan and the US spend all the money on innovation, research and
product development and China and Korea take advantage of the work already
done for them without expecting to pay for the technology!

It seems everyone has a really poor memory! I remember the time before the iPhone came out and no phone had gestures or looked anything similar to the iPhone now every smart phone Samsung makes looks like a clone!
What about tablets? Was samsung making any touch screen based tablets before the iPad came out? Have you ever seen a galaxy in person? If that isn't a direct copy you must be blind and drinking the cool aid of samsung.

Shame on anyone taking the Samsung side that is exactly the underlying reason there has been a decline in this country. Everybody wants things for free or as cheaply as possible and does not recognize or reward hard work and ingenuity!! Think about the poor software engineer who gives his life at Apple
working 16 hour days developing "gestures" for the touch interface only to have his or her ideas stolen and used by other companies with no royalty paid or cost to the company!!!!
Be careful my friends since most manufacturing has already left the US all we have left is our intellectual property and if that is not protected we have nothing!!!

You clearly live in a fantasy world where apple actually gives a damn about the US economy ? They don't.
Who is building factories in the US and pumping billions in them ? In austin texas ? That's samsung, not apple. All apple did for the american economy is build a data center, a data center, seriously ? How many people does that employ ? Very little.
How many taxes does apple pay with their offshore accounting ? Not a lot.
How many people does apple employ outside of apple stores ? A lot of korean and chinese people yes.

Samsung (electronics / buildings / logistics) are pumping more money in the american economy than apple does, that's quite sad but true.
All apple does in the US is bring up the stock market, but the stock market is pure smoke to our curreny sick and real economy.
Just look at the apple stock, -20% in a month after a new product launch ?
That's just when "real" economy gets back at you.
Samsung hires about 25% of the korean people, they build whole cities and give jobs to hundreds and hundreds of people. Is Apple doing the same in its home country ? I don't think so.
Same goes on patents, Samsung has more money in R&D than the whole US research fund on technology and diseases. Meanwhile what is doing Apple ? Ho yea, sit on a 100bilion capitalization that is used for NOTHING and congratulate themselves and shareholders that a bubble stock is going up at wall street.

Americans can't just take all the benefits of global capitalization (hiring foxconn and low cost production suppliers to make their products and sell them at 300% of margin) and ask afterwards to their competitors or the US government to be protective with them. That's not honest in any way.
Apple could build the iPhones in the US if two years ago they had invested their market cap in factories and hiring people to do what foxconn is doing. And that would have a been a pride for america to work for Apple. They would build an iphone for maybe 300$ instead of 175$ but hey, wake up, they are selling them 700$, thats still about 400$ for R&D (which apple's is lowest amongst all companies) stocking and shipping PER iphone sold. Thats about 3 billion of cash in the box on the iphone 5 launch week end alone.

So please open your eyes and face the fact that Apple and Samsung are just two big corps who are there to make money out of your back. You don't have to love them, in fact you should hate them.
 
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That's the lesson Apple needs to learn. Samsung produces everything from LCDs to NAND and SoCs which makes them independent, whereas Apple doesn't own a single factory. Without Samsung, Apple couldn't make a single iPhone or iPad but Samsung would do just fine without Apple, so who is feeding who?

Samsung can make as many LCDs, NANDs ad SoCs as they like, but if :apple: is not buying them, then it makes no difference if they can make them or not. Regardless, there are other people that make these things, It's just that at the moment it is better (for whatever reason) for Apple to source from Samsung.
 
I some how don't think its that easy for Samsung to put the prices up. They would of entered into a agreement with Apple (contract) in which apple would of stipulated in a clause in which prices would be valid for a certain period and somehow i don't think the terms of agreement would allow Samsung to increase the sale price without breaching this clause.

Of course i am speculating and Apple may of not have this clause but with apples legal experience i some how doubt apple wouldn't put this type of clause in.
 
How do we know #1 this is true and #2 has anything to do with patent litigation? A lot of assumptions are being made here without much knowledge.
 
I can't wait to see how much the Fandroids love Samsung after they've wiped out all their competitors in the Android space and become the sole Android hardware provider. Next step: a Kindle-esque Samsung version of Android over which Samsung has complete control.

It's going to be delicious.

Damn you really think that would happen? Man you're sad.
 
"samsung doesn't care about Apple"
Except that Apple is Samsung's biggest customer! In Fact if you have been paying attention they have recently cancelled plans to build a new fab plant
presumably due to decreasing chip sales!

The reason these companies are in business in the first place is they steal American ingenuity and than make inferior inexpensive versions of American
products and because the average American consumer could a give a crap
if their phone is a plastic cheap copy as longer as they save a few dollars.

What innovative product has come out of Korea lately?
IMO Japan and the US spend all the money on innovation, research and
product development and China and Korea take advantage of the work already
done for them without expecting to pay for the technology!

It seems everyone has a really poor memory! I remember the time before the iPhone came out and no phone had gestures or looked anything similar to the iPhone now every smart phone Samsung makes looks like a clone!
What about tablets? Was samsung making any touch screen based tablets before the iPad came out? Have you ever seen a galaxy in person? If that isn't a direct copy you must be blind and drinking the cool aid of samsung.

Shame on anyone taking the Samsung side that is exactly the underlying reason there has been a decline in this country. Everybody wants things for free or as cheaply as possible and does not recognize or reward hard work and ingenuity!! Think about the poor software engineer who gives his life at Apple
working 16 hour days developing "gestures" for the touch interface only to have his or her ideas stolen and used by other companies with no royalty paid or cost to the company!!!!
Be careful my friends since most manufacturing has already left the US all we have left is our intellectual property and if that is not protected we have nothing!!!

I feel sorry for this person.
 
Given that Samsung's mobile market is INCREASING and Apple's is SHRINKING, ...

Oh, good. Someone who doesn't understand the difference between market *share* and market *size*. :rolleyes:

I'll give you a hint. *BOTH* Samsung's and Apple's mobile markets are growing, though Samsung's market seems to be growing slightly faster than Apple's. The three biggest players in the mobile market are currently: Apple, Samsung, and the rest of the Android collective.

On a slightly unrelated note, the recent numbers which show the GS3 outselling the 4s showed a really interesting picture for the rest of the market. For that quarter the top 3 smart phones sold about 19M, 18M, and 5M. That's a *huge* gap between 2nd and 3rd. Given that 3rd place was on the market for only the *very* end of the quarter, it shows just how poorly most smart phones sell. Samsung seems to have finally realized that a single (or small range of) good phones are a better option than a plethora of mediocre ones. The question remains whether the rest of the Android collective will realize that before they finish burying themselves.
 
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