Samsung Working to Keep Design Dispute Separate from Component Contracts

[Macboy74]

Huh

Apple pays Samsung to design their chips and slap the Apple logo on the processor. Samsung is now paying one [carl sagan] billion for back royalties

Wrong. Apple designs the chips and Samsung makes them. This has been going on for years now.

 

[lukarak]

Ah they, ohhh do tell.

I thought they used Intel CPU's, Nvidea or AMD Graphics, Samsung Memory, Samsung or LG etc screens, Sony camera units?

I think Apple make the case top put it all in. and Customise Linux to run on it.

Yea right. In the mind of a fifthgrader.

They don't make the case either. That's why they are able to have such high margins, as they can make the best deals with whoever gives them the best price for the desired quality.

They also use their enormous cash pile to fund their suppliers' purchase of machines and other things needed to expand production, and in return, get even better pricing.

Maybe they don't own the factories, but they do fund their construction. That is especially true for displays, like the new Mac Retinas for example, and a little less true for things that are readily available on the market, such as CPUs, GPUs, RAM, SSDs or hard drives.

And OS X is not based on Linux.

 

[MrNomNoms]

At this point, I wouldn't be surprised if Apple just bought Samsung's manufacturing division and ran it themselves.

Why do that when they could easily use Global Foundries (which fabs for AMD/ATI), TSMC, UMC or even at the real off chance there is Intel which is leasing capacity to those who want to use Intel's fab facilities - it isn't as though Apple only has one company to choose from to fab their chips.

 

[nexusrule]

Apple designs the chips themselves, Samsung only manufactures them for Apple.

Actually what apple does is little modifications to standard ARMs mostly about power saving and. Not to diminish Apple role but i'ts what they does.

 

[Battlefield Fan]

Suppliers only need to be innovative and creative enough to provide the best quality, price, and delivery. If any other supplier could beat what Samsung provides, I'm sure Apple would switch.

Lol the only thing apple cares about is price. Anyone can make an A5 chip but who can make it the cheapest? That person gets the contract.

 

[VanZan]

Why do that when they could easily use Global Foundries (which fabs for AMD/ATI), TSMC, UMC or even at the real off chance there is Intel which is leasing capacity to those who want to use Intel's fab facilities - it isn't as though Apple only has one company to choose from to fab their chips.

Agreed.
Apple becoming a chip manufacturer? What sense would that make? It's like no reasonable architect has his own construction company. Or pre-fab concrete plant. But all of them construct buildings. Yet everyone does what he's best in. The important thing is the end result, and that is the architect's job. Let Apple do what they are best in.

 

[MrNomNoms]

Agreed.
Apple becoming a chip manufacturer? What sense would that make? It's like no reasonable architect has his own construction company. Or pre-fab concrete plant. But all of them construct buildings. Yet everyone does what he's best in. The important thing is the end result, and that is the architect's job. Let Apple do what they are best in.

Even if they could setup a fab it wouldn't make any economic sense - you really only get the sorts of economies of scale once you not only use the foundry to produce your own but also get enough third parties to lease out capacity. The ideal situation is to have the facility working 24/7 to really utilise the huge amount of capital tied up which is why AMD sold off its foundries to form Global Foundries and Intel is leasing its own capacity along with IBM's own Fishkill fab in New York doing the same to any people who want things fabricated.

 

[thewitt]

Lol the only thing apple cares about is price. Anyone can make an A5 chip but who can make it the cheapest? That person gets the contract.

This is not true.

Though Apple is a very demanding customer, they do not go with the lowest bidder. They have extremely high standards for their suppliers on not only quality and delivery performance, but on HR issues and environmental issues as well.

They understand it costs money to be the best supplier, and they are not afraid to pay for parts.

 

[Joe-Diver]

Apple would just move to another supplier.

Guys, it was a joke.

 

[chrisbru]

The entire design language Apple uses was created by Braun design more specifically Dieter Rams in the 1960.

On the left is a detail of a 1960s Braun T1000 radio on the right a G5 tower.

Image

http://vimeo.com/1874819

There is nothing wrong with that though.
They practice Dieter Rams 10 principles of good design:

Good Design Is Innovative
Good Design Makes a Product Useful
Good Design Is Aesthetic
Good Design Makes A Product Understandable
Good Design Is Unobtrusive
Good Design Is Honest
Good Design Is Long-lasting
Good Design Is Thorough Down to the Last Detail
Good Design Is Environmentally Friendly
Good Design Is as Little Design as Possible


http://mcculleydesign.posterous.com/dieter-rams-braun-and-apples-jonathan-ives-ap

I love apple products but i also know design history.

I'm aware of all of this - how is it relevant?

 

[JHankwitz]

Lol the only thing apple cares about is price. Anyone can make an A5 chip but who can make it the cheapest? That person gets the contract.

If that wer even the slightest bit true, Apple would have no products that worked because of the hundreds of components, and wouldn't be able to deliver the quantities they need on time. Every manufacture needs price, quality, and delivery to grow and prosper.