It's simple. Samsung has decided to become a competitor instead of a supplier. And that might work out best for them. However, Apple is not going to let Samsung profit from them anymore.
Hm, Samsung Electronics is 22nd biggest World Corpo. That is an above average medium sized fish Outside of Korea? Ok.
You are absolutely right. Samsung is a large company by any standard.
However, I wonder if this is going to be a data point which might affect the monster conglomeration trend that has been going on.
Let's take GE, for example. Or Berkshire Hathaway. Massive company with enormous resources - but they own hundreds of smaller companies. The smaller companies are typically operated as independent entities and operate within their own markets using their own resources. A $20 M Berkshire Hathaway company operates as a $20 M company - not as a $20 B company.
For the past couple of decades, these giant conglomerates have grown dramatically and have built on the name. GE companies have clearly benefited from the GE name. Most (if not all) Berkshire Hathaway companies proudly use the name in advertising. But I wonder if the case of Samsung might give them pause. Here you have one division that has cost a different division billions of dollars. Would the Samsung chip-making division be better off today WITHOUT the Samsung ties? Very likely.
I can't guarantee that this situation will cause a re-evaluation of business ownership, but it very well might. Even if that happens, it's also possible that the benefits will be seen to outweigh the disadvantages of separate ownership. At the very least, I will predict some changes over the next couple of decades. Either:
1. A change in ownership structure where large conglomerates spin off unrelated businesses and /or evolve to long term partnerships (like the Japanese keiretsu)
or
2. Continued ownership as conglomerates but with the advertising of the corporate parent taking a back seat to promoting the company itself. Conglomerates may also do a better job of building (and publicizing) the walls between subsidiaries so that any sharing of data between subs is not possible.
If this increases hardware costs which the consumers (all of us here) have to incur, how is this a good thing? Why would you want Apple's biggest competitor, Samsung, to die? Are you all that brainwashed?
On Apple's part, their attitude towards Samsung amounts to biting their nose to spite their face.
I think it is reasonable to presume that Apple originally sourced products from Samsung because they were the 'best' at making those components. Now, unless Apple got it's original homework wrong, they are going to have to settle for second best suppliers for those components. Meanwhile, other manufacturers of devices that might compete with Apple products will have access to a better supplier than those Apple will be using due to the freeing up of capacity that Apple's departure will mean for Samsung.
The signs are very bad for Samsung. Their iPad clone is already being banned in Germany, but that's just the first shot in a long war that Samsung can't win.
And things will continue to get worse for them in many other areas thanks to their irrational and self-destructive hostility toward Apple.
The real damage is yet to come. Here are a few facts to ponder:
1. Samsung is planning to cut back 80% of their LCD TV production to spend more on "mobile devices."
This January at CES, Samsung said that "Smart TVs" were the center of their "digital hub."
Evidently that didn't work out for them. Neither did that "3D" TV gimmick.
2. Samsung was one of Google's leading Android handset manufacturers. Until the Motorola Mobility acquisition.
Samsung and all other Android hardware partners will be competing in the 2nd-tier ghetto in both the Android and Windows Phone worlds.
They are now forced to hedge their bets by ramping up Windows Phone 7 handset development.
But as we've all seen, WP7 sales have been about as "smooth" as Galaxy Tab sales. (Evidently the terms for "smooth" and "flat" are the same in the Korean language.)
Palm also tried hedging their bets with devices that ran Palm OS and Windows Mobile. Didn't help.
3. Apple is already moving to replace Samsung as an LCD display panel supplier.
Apple has tested high-resolution LCD panels from LG as well as Samsung for iPad 3.
Samsung had quality issues with the current iPad 2 screen and couldn't (or wouldn't) meet Apple's quotas. Apple has apparently invested $1 billion in an LCD factory.
In Japan, owned by Sharp.
4. Samsung is already warning investors that they will be losing processor and LCD panel business as Apple contracts with other suppliers.
Apple will use them to set an example of what *not* to do when you're an Apple supplier.
Earlier this year, Samsung predicted a quadrupling of chip orders from Apple. To more than Samsung used itself in its own products:
On Apple's part, their attitude towards Samsung amounts to biting their nose to spite their face.
I think it is reasonable to presume that Apple originally sourced products from Samsung because they were the 'best' at making those components. [...]
Apple buys commodity products from Samsung. Products that many manufacturers around the world can build with equal quality.
Apple chose Samsung because of their combination of quality and low cost. I'm sure Apple can afford to pay a fraction more for the same quality components. It would be worth it just to keep Samsung out of the loop. They won't be able to leak secret information on upcoming Apple products any more:
Amen - and how about buying that Intel / Micron flash (IM Flash) that goes in them - cutting edge process technology, made next to Salt Lake City in the good 'ol USA.
I love Apple, but they obviously don't give a crap about buying from domestic suppliers - in fact it seems they go out of their way to favor Asian suppliers.
When out unemployment rate is ever increasing and the average American spends hundreds on Apple's products - Apple should not bite the hand that feeds it...
This is wishful thinking. It's actually a more expensive country for manufacturing as a whole, but it is home to some excellent engineering.
Quote:
Originally Posted by iCupertinoMDN
Someone should really bump a bullet to the back of each Samsung executives' head. Samsung executives are so fu*king stupid that they don't deserve to live.
You know that's just unnecessary.
Quote:
Originally Posted by cnocbui
On Apple's part, their attitude towards Samsung amounts to biting their nose to spite their face.
I think it is reasonable to presume that Apple originally sourced products from Samsung because they were the 'best' at making those components.
Cost is a big part of this here. Most quality displays on the market use OEM panels. This doesn't make them all the same display as a lot goes into the engineering after this point, but in terms of competitive pricing for such a machine and the ability to keep up with demand they're basically stuck between Samsung and LG. Both have had inherent strengths and weaknesses in the past with Samsung's pva favored more in gaming with LG panels were favored in displays used in areas like prepress/video editing because of generally wider viewing angles/lack of gamma shift. This is a bit generalized and the two technologies have homogenized in quality to a large degree. It's just that if things break down with LG, who will they go to after that? If Samsung is completely off the table, price negotiations could become more difficult there (ips has historically been more expensive to implement at similar sizes). You can fact check me on this if you like. Apple, NEC, Lacie, Eizo, Dell, etc. have all used panels from LG and Samsung in their higher quality displays.
Quote:
Originally Posted by SockRolid
Apple has tested high-resolution LCD panels from LG as well as Samsung for iPad 3.
Samsung had quality issues with the current iPad 2 screen and couldn't (or wouldn't) meet Apple's quotas. Apple has apparently invested $1 billion in an LCD factory.
In Japan, owned by Sharp.
I don't think I've seen any desktop display panels made by Sharp in a long time. I haven't seen Hitachi or Mitsubishi ones either. It seems like outside of medical grade panels everyone just OEMs theirs from LG or Samsung (not counting TN panels). Then again I don't know that much about Sharp in general. They're probably involved in a lot of things where I don't see their name.
Quote:
Originally Posted by 21yr_mac_user
Amen - and how about buying that Intel / Micron flash (IM Flash) that goes in them - cutting edge process technology, made next to Salt Lake City in the good 'ol USA.
I love Apple, but they obviously don't give a crap about buying from domestic suppliers - in fact it seems they go out of their way to favor Asian suppliers.
When out unemployment rate is ever increasing and the average American spends hundreds on Apple's products - Apple should not bite the hand that feeds it...
This is a pretty common argument on the forum. I haven't seen the price/performance on intel's line personally so I can't comment there. On the topic of Micron, haven't they've purchased Micron ram before. I agree with you on Apple caring very little outside of their bottom line but going into detail would derail the thread.
Whatever... so Apple is the current king of the hill. Lots of enterprises have come before them and undoubtedly many will rise into prominence after them. I remember reading about the Egyptians, the Roman Empire, the Persians, the Ottomans, the British Empire, General Motors, IBM, AOL, Yahoo, Microsoft, the United States of America, etc, all great at one time and all have failed to retain their number 1 status. I expect no less from Apple. Enjoy it while it lasts. The way they are bullying everyone and forcing consumers and professionals alike to take it or leave it, I don't give them long at the top.
Comments
In Korea samsung is a very big fish in a small pond. Outside of Korea, samsung is an above average medium sized fish.
Hm, Samsung Electronics is 22nd biggest World Corpo. That is an above average medium sized fish Outside of Korea? Ok.
Hm, Samsung Electronics is 22nd biggest World Corpo. That is an above average medium sized fish Outside of Korea? Ok.
You are absolutely right. Samsung is a large company by any standard.
However, I wonder if this is going to be a data point which might affect the monster conglomeration trend that has been going on.
Let's take GE, for example. Or Berkshire Hathaway. Massive company with enormous resources - but they own hundreds of smaller companies. The smaller companies are typically operated as independent entities and operate within their own markets using their own resources. A $20 M Berkshire Hathaway company operates as a $20 M company - not as a $20 B company.
For the past couple of decades, these giant conglomerates have grown dramatically and have built on the name. GE companies have clearly benefited from the GE name. Most (if not all) Berkshire Hathaway companies proudly use the name in advertising. But I wonder if the case of Samsung might give them pause. Here you have one division that has cost a different division billions of dollars. Would the Samsung chip-making division be better off today WITHOUT the Samsung ties? Very likely.
I can't guarantee that this situation will cause a re-evaluation of business ownership, but it very well might. Even if that happens, it's also possible that the benefits will be seen to outweigh the disadvantages of separate ownership. At the very least, I will predict some changes over the next couple of decades. Either:
1. A change in ownership structure where large conglomerates spin off unrelated businesses and /or evolve to long term partnerships (like the Japanese keiretsu)
or
2. Continued ownership as conglomerates but with the advertising of the corporate parent taking a back seat to promoting the company itself. Conglomerates may also do a better job of building (and publicizing) the walls between subsidiaries so that any sharing of data between subs is not possible.
I would think that the latter is more likely.
I think it is reasonable to presume that Apple originally sourced products from Samsung because they were the 'best' at making those components. Now, unless Apple got it's original homework wrong, they are going to have to settle for second best suppliers for those components. Meanwhile, other manufacturers of devices that might compete with Apple products will have access to a better supplier than those Apple will be using due to the freeing up of capacity that Apple's departure will mean for Samsung.
And things will continue to get worse for them in many other areas thanks to their irrational and self-destructive hostility toward Apple.
The real damage is yet to come. Here are a few facts to ponder:
1. Samsung is planning to cut back 80% of their LCD TV production to spend more on "mobile devices."
This January at CES, Samsung said that "Smart TVs" were the center of their "digital hub."
Evidently that didn't work out for them. Neither did that "3D" TV gimmick.
http://www.appleinsider.com/articles..._on_apple.html
And judging by how poorly Galaxy Tab sales have always been, spending more on "mobile devices" is not a wise move.
http://www.appleinsider.com/articles...ite_small.html
2. Samsung was one of Google's leading Android handset manufacturers. Until the Motorola Mobility acquisition.
Samsung and all other Android hardware partners will be competing in the 2nd-tier ghetto in both the Android and Windows Phone worlds.
They are now forced to hedge their bets by ramping up Windows Phone 7 handset development.
But as we've all seen, WP7 sales have been about as "smooth" as Galaxy Tab sales. (Evidently the terms for "smooth" and "flat" are the same in the Korean language.)
Palm also tried hedging their bets with devices that ran Palm OS and Windows Mobile. Didn't help.
3. Apple is already moving to replace Samsung as an LCD display panel supplier.
Apple has tested high-resolution LCD panels from LG as well as Samsung for iPad 3.
http://www.appleinsider.com/articles..._displays.html
Samsung had quality issues with the current iPad 2 screen and couldn't (or wouldn't) meet Apple's quotas. Apple has apparently invested $1 billion in an LCD factory.
In Japan, owned by Sharp.
4. Samsung is already warning investors that they will be losing processor and LCD panel business as Apple contracts with other suppliers.
Apple will use them to set an example of what *not* to do when you're an Apple supplier.
Earlier this year, Samsung predicted a quadrupling of chip orders from Apple. To more than Samsung used itself in its own products:
http://www.appleinsider.com/articles...e_in_2011.html
Not any more. Now they predict weak demand for chips and displays as Apple starts to cut Samsung out of their supply chain:
http://www.appleinsider.com/articles...f_of_2011.html
It's amazing. Who's board of directors is worse? HP's or Samsung's? It's a toss-up.
On Apple's part, their attitude towards Samsung amounts to biting their nose to spite their face.
I think it is reasonable to presume that Apple originally sourced products from Samsung because they were the 'best' at making those components. [...]
Apple buys commodity products from Samsung. Products that many manufacturers around the world can build with equal quality.
Apple chose Samsung because of their combination of quality and low cost. I'm sure Apple can afford to pay a fraction more for the same quality components. It would be worth it just to keep Samsung out of the loop. They won't be able to leak secret information on upcoming Apple products any more:
http://www.appleinsider.com/articles...edge_fund.html
How about some Intel SSDs while at it?
Amen - and how about buying that Intel / Micron flash (IM Flash) that goes in them - cutting edge process technology, made next to Salt Lake City in the good 'ol USA.
I love Apple, but they obviously don't give a crap about buying from domestic suppliers - in fact it seems they go out of their way to favor Asian suppliers.
When out unemployment rate is ever increasing and the average American spends hundreds on Apple's products - Apple should not bite the hand that feeds it...
Please let this somehow lower the cost of SSDs.
This is wishful thinking. It's actually a more expensive country for manufacturing as a whole, but it is home to some excellent engineering.
Someone should really bump a bullet to the back of each Samsung executives' head. Samsung executives are so fu*king stupid that they don't deserve to live.
You know that's just unnecessary.
On Apple's part, their attitude towards Samsung amounts to biting their nose to spite their face.
I think it is reasonable to presume that Apple originally sourced products from Samsung because they were the 'best' at making those components.
Cost is a big part of this here. Most quality displays on the market use OEM panels. This doesn't make them all the same display as a lot goes into the engineering after this point, but in terms of competitive pricing for such a machine and the ability to keep up with demand they're basically stuck between Samsung and LG. Both have had inherent strengths and weaknesses in the past with Samsung's pva favored more in gaming with LG panels were favored in displays used in areas like prepress/video editing because of generally wider viewing angles/lack of gamma shift. This is a bit generalized and the two technologies have homogenized in quality to a large degree. It's just that if things break down with LG, who will they go to after that? If Samsung is completely off the table, price negotiations could become more difficult there (ips has historically been more expensive to implement at similar sizes). You can fact check me on this if you like. Apple, NEC, Lacie, Eizo, Dell, etc. have all used panels from LG and Samsung in their higher quality displays.
Apple has tested high-resolution LCD panels from LG as well as Samsung for iPad 3.
http://www.appleinsider.com/articles..._displays.html
Samsung had quality issues with the current iPad 2 screen and couldn't (or wouldn't) meet Apple's quotas. Apple has apparently invested $1 billion in an LCD factory.
In Japan, owned by Sharp.
I don't think I've seen any desktop display panels made by Sharp in a long time. I haven't seen Hitachi or Mitsubishi ones either. It seems like outside of medical grade panels everyone just OEMs theirs from LG or Samsung (not counting TN panels). Then again I don't know that much about Sharp in general. They're probably involved in a lot of things where I don't see their name.
Amen - and how about buying that Intel / Micron flash (IM Flash) that goes in them - cutting edge process technology, made next to Salt Lake City in the good 'ol USA.
I love Apple, but they obviously don't give a crap about buying from domestic suppliers - in fact it seems they go out of their way to favor Asian suppliers.
When out unemployment rate is ever increasing and the average American spends hundreds on Apple's products - Apple should not bite the hand that feeds it...
This is a pretty common argument on the forum. I haven't seen the price/performance on intel's line personally so I can't comment there. On the topic of Micron, haven't they've purchased Micron ram before. I agree with you on Apple caring very little outside of their bottom line but going into detail would derail the thread.
6% is nothing, 94% of the company is untouched and even complete Samsung division, has nothing to deal with apple.
Samsung will cut the investment in LCD technology for AMOLED and LED panels.
men you should know the technology market is beyond apple... This is really stupid and crazy...