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Apple offering upfront cash payments to secure components, block out competitors - Page 2

post #41 of 60
Quote:
Originally Posted by Wil View Post

Considering that some of the parts are being made by their competitors vying the same markets, the phrase " blocking out competitors" makes no sense. Will Samsung say they are being harmed considering that Apple is buying the same parts they are making for their own products at cost??

Exactly. And if a component supplier is finding more demand than supply, the usual response would be to increase capacity if they believe it's worth it, so under the amazing 'laws' of capitalism, there's exactly nothing here that's wrong. Welcome to the world of the big company with lots of money.
post #42 of 60
Quote:
Originally Posted by Patranus View Post

What perception?

Its supply and demand.

Supply is low and demand is high.

Apple decided to secure its components at a higher price.

Nothing is stopping RIM from securing components at an even higher price.

It is the free market in action.


Another economic consideration:

Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.
post #43 of 60
Quote:
Originally Posted by plokoonpma View Post

Now more than ever we can see how smart and complex is Apple business.

We all know that Apple is Steve Jobs ... but I think this winning strategy has the fingerprints of Tim Cook & others all over it. Bodes well for the future. Ya gotta luv it!
Apple is not Appl ...... Please learn the difference!    
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post #44 of 60
[redacted]
If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
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post #45 of 60
Quote:
Originally Posted by kerryb View Post

I can hear the droids complaining that Apple is too aggressive protecting a giant lead in a product category they literally created. The 'me too" pads will just have to wait to get the components they will need to compete.

Or better yet, that the cash payments amount to bribing manufacturers not hold off on making parts available to competitors.
post #46 of 60
Quote:
Originally Posted by newbee View Post

We all know that Apple is Steve Jobs ... but I think this winning strategy has the fingerprints of Tim Cook & others all over it. Bodes well for the future. Ya gotta luv it!

Hell yeah I do love it!! I really love this company, it is not only for the products they made but the whole and how they do business. They will be the center and root of thousands of classes about economy and business management.

At this point I think some companies must be considering axe their tablet plans. For some.. there is no future at all.
post #47 of 60
Quote:
Originally Posted by Hellacool View Post

Apple : Hey Japan, we know your country is in a shambles right now but here is some cash to make sure we keep receiving our stuff.

Japan : But we need food and water not money!

Apple : So? Make my stuff, this Apple isnt meant for eatin!!!

...maybe it didn't fit a snide commentary, but Apple is sending over a lot of money for relief efforts as well, and set aside a bunch of HR policies to allow Apple employees there to deal with the impact. Apple employees from all over the world are themselves contributing directly to supporting the relief effort as well. Feel kinda foolish now? Thought you might.
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post #48 of 60
Quote:
Originally Posted by plokoonpma View Post

I think share holders should be happy on how Apple invest the money securing parts. Now more than ever we can see how smart and complex is Apple business. There is nothing wrong to buy in advance, more so if you have a product like the ipad2 that doesn't warm the shelves.
Competitors are really in a big problem. Not only cause their products lack the appeal of the iPad but they can't build them in quantities.
Sweet!

Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.
post #49 of 60
Quote:
Originally Posted by Wovel View Post

The RIM bus shows up with it's 47 CEOS and 32 COOs that then proceed to stand in the corner bickering with each other and miss the fact that a deal is being made.

An iPhone, a Leatherman and thou...  ...life is complete.

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post #50 of 60
Quote:
Originally Posted by peter02l View Post

Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.

But they will still have to get Andy Rubin's approval before they can ship anything.

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post #51 of 60
Quote:
Originally Posted by nagromme View Post

Apples crime isnt securing parts: clearly the demand is there and their users need those components.

The crime is that they unfairly invented a touchscreen smartphone, touchscreen pocket tablet, touchscreen full tablet, touchscreen OS and touchscreen app platformand made them greatbefore anyone else. Starting with porting OS X to ARM as the basis for iOS. What other company could do that, years ago? If Apple had any decency, they would have waited so that the other players could all begin at the same time, with no head starts for anyone. Now, were stuck with a situation where some people want a tablet, badly, and all they can get is an iPad, when what they really want is a bulkier copycat with worse battery life and less choice of apps (ironically, in the name of "choice").

You make an interesting point. France should look into this, as this is clearly anticompetitive by some standards.
post #52 of 60
Quote:
Originally Posted by peter02l View Post

Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.

It is already open and even now they told HTC and others over what hardware they can built devices to avoid fragmentation.
post #53 of 60
Quote:
Originally Posted by ThePixelDoc View Post

Come on...don't stop there... it's getting interesting!!!

The ground starts to shake a blinding light comes through the windows. A massive spaceship lands in the parking lot and out pours and endless stream of little green robots. They come in all different shapes and sizes, each claiming to be Android. Everyone looks up as they hear the distant thump of Andy Rubin's approaching helicopter.
...
I would continue but everything gets confusing when you bring Android into the picture...
post #54 of 60
Well this is more about making sure that they have enough components than trying to close out competitors. They have enormous amount of demand for the iPad, and are paying up front to make sure they can secure the components they need. If they don't do this, there will continue to be shortages for the iPad 2.
post #55 of 60
Quote:
Originally Posted by KenC View Post

So, Tim Cook knew there was going to be an earthquake and tsunami before it happened?!?

Steve Jobs.....being god..... had it all arranged......
post #56 of 60
Quote:
Originally Posted by gwilson811 View Post

Another economic consideration:

Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.

The government would never do that!
/automobilesagricultureoilgasaerospace

Well, only if it protects American-based companies!
/sematechwaterelectricitycorporatetaxrates

post #57 of 60
Quote:
Originally Posted by gwilson811 View Post

Another economic consideration:

Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.

There are no touch panels made in the US. Except for that tiny little problem, sure, the US Govt could step in and regulate supply.

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post #58 of 60
Quote:
Originally Posted by Wovel View Post

The ground starts to shake a blinding light comes through the windows. A massive spaceship lands in the parking lot and out pours and endless stream of little green robots. They come in all different shapes and sizes, each claiming to be Android. Everyone looks up as they hear the distant thump of Andy Rubin's approaching helicopter.
...
I would continue but everything gets confusing when you bring Android into the picture...

Nicely wrapped....

An iPhone, a Leatherman and thou...  ...life is complete.

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post #59 of 60
If Apple supposedly bought up all the component supplies just to block out competitors, they're idiots. What if the iPad and other products had not been as successful as Apple thought it would be? Apple would be sitting on mountains of components

While creating shortages for competitors and squeezing their margins is a welcome side effect, the logical reason for Apple offering upfront cash payments is so that Apple can get the best possible price deals and ensure as much supply as possible.

What's stopping competitors from doing the same, other than the fact that they do not have Apple's cash reserves, something that Apple legitimately built up. I understand that bloggers and online journalists want hits, so they're probably going to spin this move as anti-competitive.

Another thing that this teaches us is that being a successful tech company is not just about making good products. Things like effective supply chain management actually matter.
post #60 of 60
Quote:
Originally Posted by vvswarup View Post

Another thing that this teaches us is that being a successful tech company is not just about making good products. Things like effective supply chain management actually matter.

Which is Tim Cook's forté.

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