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I don't get why Apple relies on others to keep them going when they got all this money sitting in the bank that they can use to build their own manufacturing plants. Talk about being a cheapskate.

Because it allows Apple to maintain control over it's well known 5-7 week Inventory Channel. Why own a truck you can use for a fee as necessary as opposed to it being parked in paid storage when the crops don't receive enough rain? :apple:

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Apple: We'd like some 2GB chips for our new iPhones please.

Samsung: Sorry, we can only do 512Mb and 1GB at the moment.

Apple: Ok that'll have to do.....

;)

2g in the 7. :apple:
 
I don't get why Apple relies on others to keep them going when they got all this money sitting in the bank that they can use to build their own manufacturing plants. Talk about being a cheapskate.


The only thing i can see here, Apple would have control.... Much like how Intel makes both motherboards AND chips now..

Up shot of Apple doing this themselves :

- There would be zero/much less delays (which keeps happening due to relying on other supplies)

- much more tight control... (sorry MR) if Apple did it all themselves.

I'm sure Apple could easily do this....if they wanted...
 
Of course apple is talking to samsung.they have a 1 year lead on ever other fab and are mass producing 14 nm fin fet chips.

The gs6 is using 14nm while snapdragon and everyone else is at 20nm
 
I'd love to know how these deals are really done. Over email? A few execs fly over to Samsung and get wined and dined? Dark board rooms? Closed bidding?

Dark Rooms. Apple has goofy names for conference rooms. The developer relations team names their rooms after evangelists like Tammy Faye and Pat Robertson. The iPhone software team has a room named "Between" which is between the "Rock" and "Hard Place" meeting rooms. :apple:
 
In this case, Samsung is the seller, Apple being the buyer. Since Apple is shopping around to buy chips, I'd imagine Samsung sales team would be pitching to the Apple engineering and operations execs (highly doubt Tim Cook would be involved in this, but possible).

As for wining and dining aka T&E (travel and entertainment) while that's common and expected in other industries such as finance, I'd imagine it's less prevelant in the tech industry.

Judging by the amount of "imagining" you're doing, it seems you'd really like to know what goes on, too.
 
You should perhaps bone up a little on the history of Apple. One of the great accomplishments of Tim Cook as COO of Apple was to get rid of expensive, unprofitable, and limiting Apple owned manufacturing facilities, and replace them with nimble, just in time agreements with specialized vendors who spend all of their time perfecting this stuff. That was just as big a part of Apple's return to profitability in the late 90's and early 00's as the Jobs renaissance.

Why would Apple want to go back to the bad old days, when their profit has never been higher?

Translation: they found the joys of cheap, slave labor. ;)

Sahweeeeeet!
 
Judging by the amount of "imagining" you're doing, it seems you'd really like to know what goes on, too.

It's a guess for everyone else unless you've been directly involved in this particular deal.

My post was based on what experience I've had with sales teams and senior management of the target client, albeit in a different industry.
 
As for wining and dining aka T&E (travel and entertainment) while that's common and expected in other industries such as finance, I'd imagine it's less prevelant in the tech industry.

My last experience with this was about a decade ago, but Caribbean trips to "build friendship", many nice meals, and complimentary "sample" equipment were all a part of being wooed by manufacturers and parts suppliers who wanted our tech business.

Even better is if you do it for a living. One of my friends was a US parts buyer for a major electronics supply chain, and he and his wife were constantly being treated to trips to Paris, etc. by parts manufacturers in order to "attend" supply exhibitions.
 
When you think about it Apple is no different than, say, a Dell considering they both buy core components from others to assemble a full product but instead of the supplier being Intel it's Samsung for the SoC, DRAM, flash memory and probably soon display.
 
When you think about it Apple is no different than, say, a Dell considering they both buy core components from others to assemble a full product but instead of the supplier being Intel it's Samsung for the SoC, DRAM, flash memory and probably soon display.

Apple hasn't been different than Dell or HP since 2006.
 
Apple: We'd like some 2GB chips for our new iPhones please.

Samsung: Sorry, we can only do 512Mb and 1GB at the moment.

Apple: Ok that'll have to do.....

;)

More like....

Samsung: We got 1GB chips for $5 and a deal on the 2GB chips for $7.

Apple: That's a no brainer. We'll take the 1GB chips.

Samsung: But, for $2 more, you can get 2GB...

Apple: Yeah that's $2 more I'll have to spend. No thank you.

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2GB please.

One can hope. I've been hoping for the past 3 years...
 
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