If Apple shifts away from Samsung as a supplier, the danger is not just about the upfront dollars.
The larger danger is Apple empowering Samsung's competitors, which makes them larger, more wealthy, and capable of bidding on contracts that they might not even consider now due to less resources.
If Sony puts out an RFQ, you think Samsung wants 5 new suppliers responding because they got in bed with Apple.
So try enlightening me if I'm wrong. You're saying there aren't penalties for breaking a contract midway? Then why do we have to pay an ETF to our telecoms if we quit our two year crap early? That's patent nonsense.
That would depend on the contract. You pay an ETF to your carrier for early termination because you agreed to it.
While most multimillion dollar contracts will address early termination and probably assess penalties, there's no requirement that they do so.
Exactly. That's why I want Apple and Samsung to settle this patent business or at least get it resolved.
Amen. they should just get along.. and agree on something. many people in the law industry are laughing at how this became a trial, when it should have been settled outside the court.
Apple is at the point size wise where relying on one partner is stupid. Plain and simple. In fact Apples demands for SoC is growing so fast they likely will need other fab partners beyond Samsung anyways. Apple a year or two ago was already using 80% of Samsungs capacity. While it is not clear what the capacity of Apples and Samsungs 32/28 nm plant in Texas is they very well could be finding themselves in a crunch for parts even if that plant is humming right along.
Honestly they need another SoC supplier even if nothing had ever happened with Samsung.
So you fund two. It is only a problem if you don't use the capacity. Beyond that you have foundries like Global Foundries that you don't need to fund with similar processes to Samsungs so it isn't a big deal to consider them as a continepgency plan.
There is also the concept of not putting all your eggs in one basket.
There aren't very many suppliers that can service Apple. Samsung may have a combination of price and reliability that is difficult to find wiht some of the others. I'd imagine there's a reason Apple is so dependent on them. They could have diversified a long time ago if it was a simple matter.
Comments
The larger danger is Apple empowering Samsung's competitors, which makes them larger, more wealthy, and capable of bidding on contracts that they might not even consider now due to less resources.
If Sony puts out an RFQ, you think Samsung wants 5 new suppliers responding because they got in bed with Apple.
That would depend on the contract. You pay an ETF to your carrier for early termination because you agreed to it.
While most multimillion dollar contracts will address early termination and probably assess penalties, there's no requirement that they do so.
Quote:
Originally Posted by Tallest Skil
Would someone please let me know when this thing gets back to something even remotely resembling a coherent, intelligent argument?
You're not helping.
Originally Posted by muffinman
You're not helping.
Nor you. It evens out.
Originally Posted by jragosta
While most multimillion dollar contracts will address early termination and probably assess penalties, there's no requirement that they do so.
That seems really strange to me, but you probably know your stuff. Thanks.
Quote:
Originally Posted by AdonisSMU
Exactly. That's why I want Apple and Samsung to settle this patent business or at least get it resolved.
Amen. they should just get along.. and agree on something. many people in the law industry are laughing at how this became a trial, when it should have been settled outside the court.
Quote:
Originally Posted by wizard69
Apple is at the point size wise where relying on one partner is stupid. Plain and simple. In fact Apples demands for SoC is growing so fast they likely will need other fab partners beyond Samsung anyways. Apple a year or two ago was already using 80% of Samsungs capacity. While it is not clear what the capacity of Apples and Samsungs 32/28 nm plant in Texas is they very well could be finding themselves in a crunch for parts even if that plant is humming right along.
Honestly they need another SoC supplier even if nothing had ever happened with Samsung.
So you fund two. It is only a problem if you don't use the capacity. Beyond that you have foundries like Global Foundries that you don't need to fund with similar processes to Samsungs so it isn't a big deal to consider them as a continepgency plan.
There is also the concept of not putting all your eggs in one basket.
There aren't very many suppliers that can service Apple. Samsung may have a combination of price and reliability that is difficult to find wiht some of the others. I'd imagine there's a reason Apple is so dependent on them. They could have diversified a long time ago if it was a simple matter.