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Samsung reportedly hits Apple with 20% price increase for iPhone, iPad chips - Page 3

post #81 of 107
Quote:
Originally Posted by tooltalk View Post

 

From what I recently read, all of 200+K Samsung employees will receive cash bonus as Samsung expects $25B profit this year. 

 

http://www.inquisitr.com/354318/samsung-reports-7-3-billion-quarterly-profit/

http://nwww.koreaherald.com/view.php?ud=20100126000040

 

Not sure if there is such cash incentive at Apple. 

 

Yup, there is. That was part of the reason behind the massive share buyback that Cook announced last year.

 

http://www.asymco.com/2012/03/20/tim-cooks-latest-promise-to-apples-employees/

 

That's cash AND stock.

post #82 of 107

reportedly 20% price increase...

 

Yes “reportedly” with no authoritative source. It appears to be FUD. It may be to drive the share price down to benefit the short seller of Apple stock. Apple has long employed FUD for its own purposes. So I don't see why so much debate is needed for the obvious.


 

post #83 of 107

According to Isuppy, Apple pays $17 for this processor. A 20% increase would raise the price $3.50

per phone..hardly worth writing an article about.

post #84 of 107
I think this os pure bogus
post #85 of 107

deleted


Edited by MacRulez - 1/23/13 at 6:06am
post #86 of 107
Quote:
Originally Posted by tooltalk View Post
 

The saw it coming -- that's why they are going to use another company in the interim and eventually make their own CPU.

 

This was STARTED by the manufacturer cloning Apples device and then making a product just like it.

 

I think other companies are going to steer clear of Samsung, unless they are confident they can compete with their own device being made by one of the largest electronics manufacturers in the world.

post #87 of 107
Quote:
Originally Posted by tribalogical View Post

 

You think you understand "how business works…"?

 

Here's what I would do first: I would try like hell to win back their business. Not gouge them out of spite…… 

 

What a bunch of complete nonsense. Did you even consider that Apple is known for locking in long term contracts? This could be an issue of contingency. How do you even know it's gouging? Is it higher than they charge others for similar work? It amazes me to see some of you read so far into things you can't possibly know. You read a few lines of an article. You don't sit on their board. If you did, you wouldn't post on here that it was a move out of spite.

post #88 of 107
Quote:
Originally Posted by GregInPrague View Post

This doesn't make sense for Samsung from a business perspective.  They need Apple's money.  Apple's already mad at them over the patent infringement and counter lawsuits.  Driving up the prices for them alone will just make Apple more likely to find/create competing chip-makers to take over production for them at the earliest possible moment.  

In what way could Samsung benefit from this decision in the long term?

There is no long term, it is obvious that Apple is trying to drop Samsung as supplier regardless of pricing.

But some prices are based on volumes, and it is my understanding that Apple has already reduced their orders from Samsung. Lower orders, higher price per unit.

Of course, it is also possible that Samsung is playing hard simply because they might end up paying Apple $1B and are not too happy with that.
post #89 of 107
So is TSMC ready for the major leagues yet?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #90 of 107

Time for the judge to triple the award amount.

post #91 of 107

deleted


Edited by MacRulez - 1/23/13 at 6:06am
post #92 of 107
I guess that's one way to try and make back 1 billion dollars.
post #93 of 107
Quote:
Originally Posted by ascii View Post

Maybe they could use Intel. They already buy lots of chips off them anyway, and Intel has the 22nm technology which I don't think anyone else has.


Yeah, no way those rumours I saw of Samsung being able to make stuff at 20nm could be true - no way!

 

 

Quote:

Samsung Foundry tapes out 20-nm ARM chip

Peter Clarke

7/12/2011 8:46 AM EDT


LONDON – Samsung Electronics Co. Ltd. has said that is foundry chip making business has taped out an ARM processor test-chip intended for manufacture in a 20-nm process with high-K metal-gate technology.

http://www.eetimes.com/electronics-news/4217768/Samsung-Foundry-ARM-test-chip

post #94 of 107

deleted


Edited by MacRulez - 1/23/13 at 6:05am
post #95 of 107
Here it comes, My guess is that Apple is going to sever all ties with Samsung as a supplier and chip fab contractor ASAP. I don't know how long it'll take, 9 months or 3 years or what, but Samsung is 2nd to only Google at this point in terms of being Apple's least favorite business partner. Unless something drastic changes in the next year or so, I don't see it going any other way than complete splitsville.
post #96 of 107

I am all for Apple dropping Samsung, but I hope Apple is making secret plans with someone and ramping up production instead of getting terms dictate by Samsung.  

 

Would be nice to get some kind of good news now because the sentiment is pretty horrible regarding Apple stock.  Maybe Tim Took should return to managing the supply chain and find another CEO. 

post #97 of 107
I will not be buying any Samsung branded products, ever.
post #98 of 107

Love this idea.  I would be willing to pay more for a "Made in America" Apple device.

post #99 of 107
Quote:
Originally Posted by Ub52209 View Post

According to Isuppy, Apple pays $17 for this processor. A 20% increase would raise the price $3.50

per phone..hardly worth writing an article about.

 

Apple pays $17 for A6 (iPhone 5) and $23 for A6x.  Apple purchased 130+M Ax processors, and 200M this year.   That's about $800M more per year.  

post #100 of 107
Quote:
Originally Posted by dcolley View Post

I will not be buying any Samsung branded products, ever.

 

I'm way ahead of you. I will not be buying any Samsung branded products, ever + infinity.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #101 of 107
Originally Posted by wallop View Post
reportedly 20% price increase...

 

Yes “reportedly” with no authoritative source. It appears to be FUD. It may be to drive the share price down to benefit the short seller of Apple stock. Apple has long employed FUD for its own purposes. So I don't see why so much debate is needed for the obvious.

 

Hey, wallop? You can pack one without massive font.


Originally Posted by dcolley View Post
I will not be buying any Samsung branded products, ever.

 

Make back a billion, lose 30 billion.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #102 of 107
Quote:
Originally Posted by Fake_William_Shatner View Post

The saw it coming -- that's why they are going to use another company in the interim and eventually make their own CPU.

 

This was STARTED by the manufacturer cloning Apples device and then making a product just like it.

 

I think other companies are going to steer clear of Samsung, unless they are confident they can compete with their own device being made by one of the largest electronics manufacturers in the world.

 

 

Well, Apple should have signed a non-compete agreement before contracting Samsung as their main supplier, as Dell did a decade ago (Samsung manufactured all Dell's h/w and in turn agreed not to market Samsung branded PC/laptops in the US until recently).

 

You also need to keep in your mind that Samsung has been making mobile phones at least a full decade longer than Apple, or at least going back to early 1990's, (though it wasn't as successful back then), so it's somewhat nonsensical to claim that Samsung was cloning Apple devices. 

 

Samsung's biggest customers are AT&T, Verizon, HP's and they have little or no business that overlaps with Samsung's component or IT/Mobile business.  Even Samsung's largest competitors like SONY relied on Samsung for LCDs and other components for several years, knowing fully that Samsung was one of their main competitors, so I don't think much of this is going to change now.

 

Then you also have to consider the fact that Samsung's share of commodified h/w is just simply too big.  Take for instance, AMOLED - Samsung has 97% of the AMOLED worldwide marketshare - Moto, HTC (until very recently), Nokia, etc all have no choice, but to purchase Samsung made AMOLED. That's simply math. 

post #103 of 107
Quote:
Originally Posted by Suddenly Newton View Post

So is TSMC ready for the major leagues yet?

 

Probably not.   Didn't Qualcomm just contract Samsung for S* chips manufacturing, because of the supply shortage at TSMC?

 

http://www.eetimes.com/electronics-news/4376633/Qualcomm-signs-UMC-Samsung-for-28-nm-says-report

post #104 of 107
Quote:
Originally Posted by Suddenly Newton View Post

 

I'm way ahead of you. I will not be buying any Samsung branded products, ever + infinity.


Why don't you just go all the way and stop buying all devices that contain Samsung components?    Now, let's start with Apple's iDevices with allegedly contains at least 25+% Samsung components (based on BOM). 

post #105 of 107
Quote:
Originally Posted by ShAdOwXPR View Post

Well this is the last nail in the coffin, Samsung better win big on mobile because in a few years the biggest component buyer wont buy anything from them. A huge risk if they loss on mobile in the end IMHO...

 

Dont need to. That is the beauty of a vertically integrated company. The extra supply will go into Samsung's increasing sales of their Galaxy phones.

"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

Reply

"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

Reply
post #106 of 107
Quote:
Originally Posted by drblank View Post

Sounds like Samsung wants to charge Apple money extra to pay the fines they owe them..  Sleazy if you ask me.

 

Not sleazy. That is just plain smart.

 

Samsung raised the price of components because they know that they have Apple on lockdown.

 

Apple had no choice but to accept the terms because they had no alternative.

 

There is a news articles that states this. Apple first balked at the increase in price, but finally had to give in due to lack of an alternative.

 

Samsung knew this and squeezed. That is business smart, not sleazy.

 

 

 

While I'm at it, it's rumored that TSMC will devote a majority of their facilities to produce Apple's chips. Guess where their other customers will be going? Samsung.

 

 

Also, since Apple is rumored to move its production of its own chips to another fab, the fab that is accepting the move should also be worried. Why? Because now there is a risk that the customer will be moving to yet another fab, making the justification for plant improvement less than appealing from the supplier point of view.

 

Not only that, since Apple will have a lockdown on the supplier, they will ask for ever cheaper prices to supply their chips, shrinking the profit margins of the fab. (This is what is happening with Apple's current suppliers).

 

Rather than Apple having good relations with its suppliers, I see them having an increasingly difficult time. Their profit margins will decrease and so do their share prices, suppliers wont be jumping on the chance of supplying Apple with their components because of their high demands for low prices, which eats into the supplier's margins.

 

Ultimately, I see the day when Apple will have to force themselves to invest in hard capital intensive facilities like what Samsung is doing and become a fully vertically integrated company in order to survive. By then, it will already be too late.


Edited by Galbi - 11/13/12 at 7:42pm

"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

Reply

"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

Reply
post #107 of 107
Originally Posted by Galbi View Post
By then, it will already be too late.

 

Right. By then Samsung will have been long since out of the industry, bereft of profit and mocked worldwide.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
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