Originally Posted by JoshKar426
I'm sure that almost everyone who doesn't believe what I'm saying has never had a tech job or a business job that deals with the tech industry. The manufacturers play a crucial part in the design of the final product. That's essential and one of the reasons why Apple can't move to TSMC for its processors yet.
Most times, companies like AMD and NVIDIA do half of the designing while TSMC does the rest.
In the case of Apple and Samsung, Samsung does most of the designing and Apple takes all the credit. What a despicable corporation.
It's easy to get another supplier for LCD panels. LG might not have their LCD tech on par with Samsung, but the average user won't give a damn and the user experience won't change.
However, if you outsource processors to different manufacturers, you risk huge performance gaps.
In industry, companies can be integrators (this is the case of aeroplane or car manufacturers (Airbus, Boeing ...)) or components suppliers (they design, manufacture and sell their components to the first category for integration into a final original product).
Samsung is both, which some people (like you, if I understand well) see as a competitive advantage.
Like others, I disagree, because when you develop internally your own technology, it not only cost you a lot of money, but it obliges you to be always the best in ALL technologies you use, which is known to be impossible (you always have unexpected breakthroughs coming from unknown outsiders).
Having said this, the "make or buy" decision may not be always the same , depending on the components (an integrator may decide to develop its own technology, just keep it for himself, if he sees it as a competitive advantage). Could be the case for batteries in the case of electric cars, for instance. And since Apple now can financially afford to enter the chips business, we may see moves in this direction. But the "make or buy" situation may not be stable over time.
I am an Apple fan, I do not like Samsung. But the strange thing is that these two companies have a lot in common (capacity for elaborating long term strategy, vertical integration, some form of secrecy, disregard for stock exchange opinion, and desire for worldwide domination for example).
Edited by umrk_lab - 6/5/13 at 7:07am