They're already made in Austin, Texas, and nobody seems to care or give them credit for it. Their products are already "Designed in California", and nobody cares about that either. :P
All people focus on is final assembly.
And they have roughly 70,000 employees, the vast majority of those in the USA. Yep. So most of the core of their hands-on business happens in the U.S. Apple already designs 'premium' products. If they tried to build those end to end in the USA now while their competitors continued to assemble their products in $1.50/hr China, they couldn't compete at all.
And I wonder… How many American workers do you suppose it would take to assemble 20 million iDevices a month, while maintaining the same quality controls and reliability, and not costing 20 times more to assemble? How long would it take them to find and train enough Americans willing to do that assembly-line factory work? People who would stay with it long-term and be loyal, reliable workers?
And I suppose they could charge $1,000 for a top of the line iPhone, or $1,500 for an iPad… but then, who would buy those instead of a Galaxy S3 or Kindle Fire at less than half the price?
Real-world reality dictates many of the terms…. I think Apple has struck a pretty good balance between domestic management and overseas manufacture...
Anyway Apple is not going to do any business with SamScum in near future. So, SamSung - sorry - SamScum want to milk now. So, it increased the price. Apple really really really has to buy Yahoo! and a super semiconductor company. These two are the ones Apple is not having on its own.
1. A search engine
2. Chip maker
Says who? You dont work for Apple nor do you know anyone who do (the same goes for myself).
You are only saying those things just to heal your downed ego. Admit it.
In the world of business, no one can go at it alone. You need cooperation. There is not feelings in business, only the bottom line is what counts. No amount of harking and barking will change that fact.
P.S. You see that share price indicator on the top right corner of this page? Expect to see that int he $400's with a lot of red figures in the near future.
In what way could Samsung benefit from this decision in the long term?
um maybe they start build their own product with those chips and or sell the production capacity to another company under terms that are far more profitable per unit to Samsung perhaps?
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?
Samsung is not in it to make any sense.. they're out to make agony for Apple. Because Apple dare to challenge their business model of copying successful products.. Ask Sony & others what happened to them when they did not challenge Samsung.
That is good news for the Americans working in that Austin fab, no? That is good for the US economy, no? Personally I don't care if Apple increases the price. We probably have less whiners if they do because less people can afford it.
not sure how that works. How does that benefit American workers at Samsung in Austin, TX? The price hikes doesn't mean more jobs or higher wages for those workers.
Uh... no. It will just increase Apple's incentive to move more business to other suppliers and AWAY from the plant in Texas. Unless you think Samsung is passing the result of the price increases to the workers. Yeah right.
From what I recently read, all of 200+K Samsung employees will receive cash bonus as Samsung expects $25B profit this year.
Here's what I would do first: I would try like hell to win back their business. Not gouge them out of spite……
Aside from a few stray rumors, can you demonstrate where Apple has "decided to stop buying" from Samsung? No, you cannot. So if this rumor is true, it speaks quite poorly of Samsung.
That aside, Samsung has a pretty long and storied history as a "gangster" company… this is just more of the same from them. Now that they've gotten a ton of extra cash from riding Apple's coattails, they will tug at strings to exert a sense of power. If they sense weakness in Apple, they'll exploit that any way they can. It will be short lived, however. I think that within 24 months, Apple will be shifting production away from Samsung on multiple fronts; CPU fab, flash RAM and displays.
Apple may not cut them out completely, they are in fact a reliable and capable supplier, but they will no longer enjoy first-tier status. Not after putting the screws to Apple like they have.
So to reverse the question: If you were a supplier's top-tier client, buying more from them than any other company, and they ran roughshod on you like this, what would YOU do?
Says who? You dont work for Apple nor do you know anyone who do (the same goes for myself).
You are only saying those things just to heal your downed ego. Admit it.
In the world of business, no one can go at it alone. You need cooperation. There is not feelings in business, only the bottom line is what counts. No amount of harking and barking will change that fact.
P.S. You see that share price indicator on the top right corner of this page? Expect to see that int he $400's with a lot of red figures in the near future.
Oh Yes! I agree. You can never run a company being in an island. Yes. I agree also that business needs other collaborations or what so ever. But, the Apple philosophy to own the core technology also has many many many valid points.
Citing those valid points... I am telling they should own a search engine and a chip making business.
I cant deny your below statement
Quote:
You are only saying those things just to heal your downed ego. Admit it.
They're already made in Austin, Texas, and nobody seems to care or give them credit for it. Their products are already "Designed in California", and nobody cares about that either. :P
All people focus on is final assembly.
well, because they are not made by Apple? It's Samsung's made-in-USA chips. In fact, Samsung's maintained a multi-billion dollar chip manufacturing complex in Austin, Texas for at least two decades now. It's funny, nobody here thinks Apple should take the blame for Foxconn's labor abuses, yet when it comes to taking credit for employing American workers, or anything made in USA ...
So, now you have find out why the AAPL is falling like a rock for the last weeks. There is always a reason even if you don't know it in real time. The people from Samsung who knew this probably were shorting like hell even before they informed Apple of their decision.
What difference does it make? If Apple experiences a 20% cost increase, its an increase. If they don't raise retails to cover the cost, whatever that cost actually is, then it is absorbed into their profit margin, hence making earnings more difficult to achieve and the stock takes a hit, which seems to be the pattern these days. Apple is already getting pounced upon for their 'inflated' iPad mini retail, so it's unlikely that you would see any significant retail increase, if any. The market won't allow it.
Like I said, no one here has enough information to know if this makes any difference. give you a simple example, say apple pays $10 for the previous chip and pays another $5 for other chips and functional components. Now today they new chip includes the other $5 of chips and functional components and it 20% higher than the old chip so they now are paying $12 not $10 + $5 = $15 the cost of the phone to them is now $3 less, This happens all the time in the SOC market place, the next generation is actually more than the previous but overall cost are less.
So without having the reference a $20% increase is meaningless and the cost increase on one part may be insignificant is the increase allow them to save money elsewhere.
So Apple now designs their own chips and no longer works with Samsung for design. Now Samsung only manufactures the chips. Well no matter if Apple takes their business elsewhere, somebody still has to manufacture the chips and Apple has to pay them. Unless Apple opens a plant to make the chips themselves.
And they have roughly 70,000 employees, the vast majority of those in the USA. Yep. So most of the core of their hands-on business happens in the U.S. Apple already designs 'premium' products. If they tried to build those end to end in the USA now while their competitors continued to assemble their products in $1.50/hr China, they couldn't compete at all.
And I wonder… How many American workers do you suppose it would take to assemble 20 million iDevices a month, while maintaining the same quality controls and reliability, and not costing 20 times more to assemble? How long would it take them to find and train enough Americans willing to do that assembly-line factory work? People who would stay with it long-term and be loyal, reliable workers?
And I suppose they could charge $1,000 for a top of the line iPhone, or $1,500 for an iPad… but then, who would buy those instead of a Galaxy S3 or Kindle Fire at less than half the price?
Real-world reality dictates many of the terms…. I think Apple has struck a pretty good balance between domestic management and overseas manufacture...
Well, the vast majority you speak of work at Apple retail stores making pittance in wages. Apple's engineering teams don't employee tens of thousands of engineers; Jon Ive's own design group employs only a handful of designers (fewer than a dozen, I believe).
Nope, that's a complete red herring. I don't think too many people here think Apple should bring back low-wage, low-skilled menial jobs back to the US (assembly - well, unless you are one of those pro-union raging liberals), but some AI'ers argue that perhaps some of the high tech manufacturing should be done in the US. That's what developed economies often do - they make advanced machineries and high-tech manufactured goods. Samsung is obviously demonstrating it in Austin, TX.
Comments
Originally Posted by timetech
Can apple just have an american made processor where it can create jobs here and have a discount on them
Yes. In fact, they already do. iPhone processors are made here, in Texas, and shipped to China, where they're assembled.
I forget when that started. Maybe with the A4 chip? All subsequent chips have been made here.
Quote:
Originally Posted by acslater017
They're already made in Austin, Texas, and nobody seems to care or give them credit for it. Their products are already "Designed in California", and nobody cares about that either. :P
All people focus on is final assembly.
And they have roughly 70,000 employees, the vast majority of those in the USA. Yep. So most of the core of their hands-on business happens in the U.S. Apple already designs 'premium' products. If they tried to build those end to end in the USA now while their competitors continued to assemble their products in $1.50/hr China, they couldn't compete at all.
And I wonder… How many American workers do you suppose it would take to assemble 20 million iDevices a month, while maintaining the same quality controls and reliability, and not costing 20 times more to assemble? How long would it take them to find and train enough Americans willing to do that assembly-line factory work? People who would stay with it long-term and be loyal, reliable workers?
And I suppose they could charge $1,000 for a top of the line iPhone, or $1,500 for an iPad… but then, who would buy those instead of a Galaxy S3 or Kindle Fire at less than half the price?
Real-world reality dictates many of the terms…. I think Apple has struck a pretty good balance between domestic management and overseas manufacture...
Quote:
Originally Posted by Chandra69
Anyway Apple is not going to do any business with SamScum in near future. So, SamSung - sorry - SamScum want to milk now. So, it increased the price. Apple really really really has to buy Yahoo! and a super semiconductor company. These two are the ones Apple is not having on its own.
1. A search engine
2. Chip maker
Says who? You dont work for Apple nor do you know anyone who do (the same goes for myself).
You are only saying those things just to heal your downed ego. Admit it.
In the world of business, no one can go at it alone. You need cooperation. There is not feelings in business, only the bottom line is what counts. No amount of harking and barking will change that fact.
P.S. You see that share price indicator on the top right corner of this page? Expect to see that int he $400's with a lot of red figures in the near future.
Texas Instruments will gladly help.
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.
Quote:
Originally Posted by GregInPrague
In what way could Samsung benefit from this decision in the long term?
um maybe they start build their own product with those chips and or sell the production capacity to another company under terms that are far more profitable per unit to Samsung perhaps?
Originally Posted by ascii
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.
The PPW there is horrible, isn't it? Never mind the dozens of other problems that would cause.
If you were Samsung, wouldn't you raise your prices 20% after Apple sued them for violating patents - some of them a little egregious
And Apple is looking at moving production to TSMC.
I would do this if I were Samsung
Quote:
Originally Posted by PhilBoogie
That is good news for the Americans working in that Austin fab, no? That is good for the US economy, no? Personally I don't care if Apple increases the price. We probably have less whiners if they do because less people can afford it.
not sure how that works. How does that benefit American workers at Samsung in Austin, TX? The price hikes doesn't mean more jobs or higher wages for those workers.
Quote:
Originally Posted by malax
(Assuming this is even true)
Uh... no. It will just increase Apple's incentive to move more business to other suppliers and AWAY from the plant in Texas. Unless you think Samsung is passing the result of the price increases to the workers. Yeah right.
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.
Quote:
Originally Posted by tribalogical
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……
Aside from a few stray rumors, can you demonstrate where Apple has "decided to stop buying" from Samsung? No, you cannot. So if this rumor is true, it speaks quite poorly of Samsung.
That aside, Samsung has a pretty long and storied history as a "gangster" company… this is just more of the same from them. Now that they've gotten a ton of extra cash from riding Apple's coattails, they will tug at strings to exert a sense of power. If they sense weakness in Apple, they'll exploit that any way they can. It will be short lived, however. I think that within 24 months, Apple will be shifting production away from Samsung on multiple fronts; CPU fab, flash RAM and displays.
Apple may not cut them out completely, they are in fact a reliable and capable supplier, but they will no longer enjoy first-tier status. Not after putting the screws to Apple like they have.
So to reverse the question: If you were a supplier's top-tier client, buying more from them than any other company, and they ran roughshod on you like this, what would YOU do?
time for a tin-foil hat?
Quote:
Originally Posted by Galbi
Says who? You dont work for Apple nor do you know anyone who do (the same goes for myself).
You are only saying those things just to heal your downed ego. Admit it.
In the world of business, no one can go at it alone. You need cooperation. There is not feelings in business, only the bottom line is what counts. No amount of harking and barking will change that fact.
P.S. You see that share price indicator on the top right corner of this page? Expect to see that int he $400's with a lot of red figures in the near future.
Oh Yes! I agree. You can never run a company being in an island. Yes. I agree also that business needs other collaborations or what so ever. But, the Apple philosophy to own the core technology also has many many many valid points.
Citing those valid points... I am telling they should own a search engine and a chip making business.
I cant deny your below statement
Quote:
You are only saying those things just to heal your downed ego. Admit it.
Quote:
Originally Posted by acslater017
They're already made in Austin, Texas, and nobody seems to care or give them credit for it. Their products are already "Designed in California", and nobody cares about that either. :P
All people focus on is final assembly.
well, because they are not made by Apple? It's Samsung's made-in-USA chips. In fact, Samsung's maintained a multi-billion dollar chip manufacturing complex in Austin, Texas for at least two decades now. It's funny, nobody here thinks Apple should take the blame for Foxconn's labor abuses, yet when it comes to taking credit for employing American workers, or anything made in USA ...
If apple haven't started this BS patient crap REGARDLESS whose right, biting others' heads is the cause to this messy situation. Why not be humble?
Quote:
Originally Posted by cmvsm
What difference does it make? If Apple experiences a 20% cost increase, its an increase. If they don't raise retails to cover the cost, whatever that cost actually is, then it is absorbed into their profit margin, hence making earnings more difficult to achieve and the stock takes a hit, which seems to be the pattern these days. Apple is already getting pounced upon for their 'inflated' iPad mini retail, so it's unlikely that you would see any significant retail increase, if any. The market won't allow it.
Like I said, no one here has enough information to know if this makes any difference. give you a simple example, say apple pays $10 for the previous chip and pays another $5 for other chips and functional components. Now today they new chip includes the other $5 of chips and functional components and it 20% higher than the old chip so they now are paying $12 not $10 + $5 = $15 the cost of the phone to them is now $3 less, This happens all the time in the SOC market place, the next generation is actually more than the previous but overall cost are less.
So without having the reference a $20% increase is meaningless and the cost increase on one part may be insignificant is the increase allow them to save money elsewhere.
So Apple now designs their own chips and no longer works with Samsung for design. Now Samsung only manufactures the chips. Well no matter if Apple takes their business elsewhere, somebody still has to manufacture the chips and Apple has to pay them. Unless Apple opens a plant to make the chips themselves.
Quote:
Originally Posted by tribalogical
And they have roughly 70,000 employees, the vast majority of those in the USA. Yep. So most of the core of their hands-on business happens in the U.S. Apple already designs 'premium' products. If they tried to build those end to end in the USA now while their competitors continued to assemble their products in $1.50/hr China, they couldn't compete at all.
And I wonder… How many American workers do you suppose it would take to assemble 20 million iDevices a month, while maintaining the same quality controls and reliability, and not costing 20 times more to assemble? How long would it take them to find and train enough Americans willing to do that assembly-line factory work? People who would stay with it long-term and be loyal, reliable workers?
And I suppose they could charge $1,000 for a top of the line iPhone, or $1,500 for an iPad… but then, who would buy those instead of a Galaxy S3 or Kindle Fire at less than half the price?
Real-world reality dictates many of the terms…. I think Apple has struck a pretty good balance between domestic management and overseas manufacture...
Well, the vast majority you speak of work at Apple retail stores making pittance in wages. Apple's engineering teams don't employee tens of thousands of engineers; Jon Ive's own design group employs only a handful of designers (fewer than a dozen, I believe).
Nope, that's a complete red herring. I don't think too many people here think Apple should bring back low-wage, low-skilled menial jobs back to the US (assembly - well, unless you are one of those pro-union raging liberals), but some AI'ers argue that perhaps some of the high tech manufacturing should be done in the US. That's what developed economies often do - they make advanced machineries and high-tech manufactured goods. Samsung is obviously demonstrating it in Austin, TX.