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
I will not be buying any Samsung branded products, ever.
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.
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).
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.
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.
Comments
Quote:
Originally Posted by Ub52209
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.
Quote:
Originally Posted by dcolley
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.
Originally Posted by wallop
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
I will not be buying any Samsung branded products, ever.
Make back a billion, lose 30 billion.
Quote:
Originally Posted by Fake_William_Shatner
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.
Quote:
Originally Posted by Suddenly Newton
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
Quote:
Originally Posted by Suddenly Newton
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).
Quote:
Originally Posted by ShAdOwXPR
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.
Quote:
Originally Posted by drblank
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.
Originally Posted by Galbi
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.