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Samsung Reportedly Hits Apple with 20% Price Increase for iOS Device Chips
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It's not uncommon for long-term, large-volume contracts to include provisions for price fluctuations based on increased costs. A 20% jump seems pretty big, but we're not privy to the conditions which might have triggered the change, so it might not be.
Oh, good. Someone who doesn't understand the difference between market *share* and market *size*.
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.
Sure buddy apple marketshare is growing.
A) Given that the chip in question, the A-series SOC, is an Apple design, its *highly* unlikely that Samsung can sell it to anyone else. They are perfectly capable of allocating any 'spare' production lines to provide (different) chips to other customers, though.
B) Exactly. (It's a wonder that more people don't understand that.)
No way it is 10%. According to Wikipedia, Apple makes only 2.6% of Samsung total sales in 2010.
And if everyone is saying that Apple reducing its dependance from Samsung, how it can be 10%?
http://en.wikipedia.org/wiki/Samsung_Electronics#Major_customers
It is probably around 3% for all 3 components. Chips alone probably 1%. And if Apple quits, Samsung will use production capacity/workforce to build other chips for other companies. But the reality is such that the demand for mobile components skyrocketing around the world making for Apple even harder to quit since probably no one else could satisfy always growing Apple needs for quality/quantity/value components.
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I must have missed the post where someone claimed Samsung makes "such ***** quality parts". I saw the word "average" used, but that's not an insult. Samsung has the infrastructure to provide average-good quality parts, in large quantities, at a decent price. That's why vendors who need large quantities of parts use them as suppliers.
Dollar losing value
This is probably just a result of the dollar losing value against the won over the last few years. Expect prices of everything made outside the US to increase. This is the consequence of "quantitative easing" meaning the fed is printing money causing real inflation but denying it.
This is probably just a result of the dollar losing value against the won over the last few years. Expect prices of everything made outside the US to increase. This is the consequence of "quantitative easing" meaning the fed is printing money causing real inflation but denying it.
Almost 10% is a big decrease in revenue to swallow. Shareholders will love that.
Somebody doesn't understand that there are costs involved in making a product (any product) that go beyond the parts and assembly costs for each unit.
What 1B? Are you referring to the money Samsung hasn't actually been ordered to pay yet because the suit is in Appeals?
Take that billion $ settlement..
Take that $$$billion$$$ settlement and build a state of the art manufacturing company (in the U.S.) that is Apples completely. Yes, it make take a few months to do but in the long run, Apple is free from the parasites. By the way, I for one have quit buying Samsung products because it was quite evident that they were merely riding on the backs of Apple ideas. Why reward them.
Take that $$$billion$$$ settlement and build a state of the art manufacturing company (in the U.S.) that is Apples completely. Yes, it make take a few months to do but in the long run, Apple is free from the parasites. By the way, I for one have quit buying Samsung products because it was quite evident that they were merely riding on the backs of Apple ideas. Why reward them.
What billion? Apple not only hasn't and might not see a dime of that - but most recently is footing Samsung's legal bills in the UK for that lawsuit.
p.s. So have you stopped buying any product that has Samsung parts in it? Are you returning your iPhones/iPads/etc?
Yes and how many different products does Samsung make vs Apple!!!
Now check out how many patents they have in the mobile phone division and the software and computer division compared to Apple!!
Also are the number of patents = quality innovation? Please help bring some light
to some of those killer ideas Samsung has brought to the market?
Maybe this is Samsung's way of accelerating Apple to look for alternative suppliers, instead of telling Apple outright to go find chips elsewhere.
This is what happens when you play with fire and start burning bridges.
Apple shouldn't be surprised by such a move and should actually be thankful that the price increase was only 20%. Samsung could have easily asked for a 50% or 100% increase given that its aware that Apple has no other alternatives.
If Apple refused, they would have had to immediately find another supplier that wouldn't have the technology required to manufacture these chips on spec and couldn't handled the load needed by Apple.
If Apple could have changed suppliers it would have done so already, even if it meant a premium in cost as long as it allowed Apple to be free from its reliance on Samsung.
Apple shouldn't be surprised by such a move and should actually be thankful that the price increase was only 20%. Samsung could have easily asked for a 50% or 100% increase given that its aware that Apple has no other alternatives.
If Apple refused, they would have had to immediately find another supplier that wouldn't have the technology required to manufacture these chips on spec and couldn't handled the load needed by Apple.
If Apple could have changed suppliers it would have done so already, even if it meant a premium in cost as long as it allowed Apple to be free from its reliance on Samsung.
Wow. The new ($19) lightning cables cost twice what the old ($19) dock cables cost? So $19x2 = $19?!
Looks like someone needs to go back to school to learn basic math. (It's not me.)
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Your point being, what? Only one person is ever 'allowed' to correct you when you're wrong about something?