Samsung chip price hike would affect Apple's margins by 1-2% points

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Comments

  • Reply 21 of 36

    Quote:

    Originally Posted by mstone View Post


    What? ARM cores don't come in a box. Apple licenses the technology but the chip architecture is uniquely theirs and it is patented. Samsung can't use it.



    And that's not what he meant.


     


    What he said is that Samsung can even use the same plants that build the a6 to build exynos, since the basics are the same.


     


    In fact, Samsung only copies the basics of ARM and adds nothing to then, that's why the A6, despite not being totally A-15, absolutely destroy the exynos 5 dual at pretty much any meaningful, even by a factor of 2, so the exynos is easy to produce. Will the exynos quad keep up? I guess not.


     


    Apple, with the a6, got so much advantage... and when you think of it and look ahead... god save the tegra, snapdragon and exynos. They should thank Apple for only making iPhones instead of licensing their tech.

  • Reply 22 of 36
    sensisensi Posts: 346member
    Come on TSCM step up and take the business from away Samsung already.

    Time will tell.
    TSMC is in the foundry business: it manufactures but doesn't engineer anything, you would still need other people to engineer and evolve processors.
  • Reply 23 of 36

    Quote:

    Originally Posted by Sensi View Post



    TSMC is in the foundry business: it manufactures but doesn't engineer anything, you would still need other people to engineer and evolve processors.


    So what?


     


    It's 100% Apple and ARM now, samsung has nothing to do with it, they engineer 0 for Apple processors, they are the cheaper and probably the better (at such quantities) at manufacturing and that's it.

  • Reply 24 of 36
    http://www.theverge.com/2012/11/14/3644716/samsung-iphone-ipad-processor-price-rise-denial-hankyoreh

    [B][COLOR=red]Samsung reportedly denies iPhone and iPad processor price hikeShare[/COLOR][/B]

    A Samsung official has reportedly denied claims that the company has raised the price it charges Apple for its iPhone and iPad processors by almost 20 percent. Speaking with Korean newspaper The Hankyoreh, the unnamed official added that prices were agreed upon at the beginning of each year and "aren't changed easily."

    Monday's report in rival paper Chosun claimed Apple and Samsung have a supply agreement that runs through to 2014, and unless "special cost factors" were involved, unit prices have traditionally stayed level.
  • Reply 25 of 36
    galbigalbi Posts: 968member

    Quote:

    Originally Posted by mstone View Post


    What? ARM cores don't come in a box. Apple licenses the technology but the chip architecture is uniquely theirs and it is patented. Samsung can't use it.



    I guess you've missed my point. 


     


    Swtiching from the A6 to the Exynos is a heck of a lot easier than switching from an x86 processor to an ARM. 


     


    THAT was my point. 


     


     




    Quote:

    Originally Posted by pedromartins View Post


    So what?


     


    It's 100% Apple and ARM now, samsung has nothing to do with it, they engineer 0 for Apple processors, they are the cheaper and probably the better (at such quantities) at manufacturing and that's it.




     


     


    Key word "Now"


     


    Because before, Samsung engineered a lot of Apple's processor for them. Wanna know why a lot of recent Samsung chip engineers were hired by Apple? Because they were working on their A series chips for them in the prior years. Matter of fact, I know one member in the church that I attend who used to work for Samsung but is now at Apple working on the same type of SOC chips. His wife is still in Texas while he is in California. 


     


     


    Quote:

    Originally Posted by pedromartins View Post


    And that's not what he meant.


     


    What he said is that Samsung can even use the same plants that build the a6 to build exynos, since the basics are the same.


     


    In fact, Samsung only copies the basics of ARM and adds nothing to then, that's why the A6, despite not being totally A-15, absolutely destroy the exynos 5 dual at pretty much any meaningful, even by a factor of 2, so the exynos is easy to produce. Will the exynos quad keep up? I guess not.


     


    Apple, with the a6, got so much advantage... and when you think of it and look ahead... god save the tegra, snapdragon and exynos. They should thank Apple for only making iPhones instead of licensing their tech.


     



     


    Unless you are an expert in chip manufacturing or design, you have no idea if that is true (nor do I ). The only reason why you say that Apple designed their ARM core in custom configuration was because they put those words in your mouth through their marketing machine. 


     


    No one, besides, Samsung and Apple, themselves know the true story behind this. 


     


    Plus, I'd like to see equivalent benchmarks for the legitimacy of your statements. The only fact that I've encountered so far was that the A6 only has an advantage in the graphics department. 

  • Reply 26 of 36
    sensisensi Posts: 346member
    It's 100% Apple and ARM now, samsung has nothing to do with it, they engineer 0 for Apple processors
    Are you so sure of that? Any source to back it up?
  • Reply 27 of 36
    gatorguygatorguy Posts: 20,281member


    Per clarification from Samsung the original report is bogus. They're not raising the cost of A-series processors to Apple.


     


    http://www.thestreet.com/story/11766909/1/apple-investors-can-relax-a-little-bit.html

  • Reply 28 of 36

    Quote:

    Originally Posted by Prima Kingu View Post



    http://www.theverge.com/2012/11/14/3644716/samsung-iphone-ipad-processor-price-rise-denial-hankyoreh

    Samsung reportedly denies iPhone and iPad processor price hikeShare

    A Samsung official has reportedly denied claims that the company has raised the price it charges Apple for its iPhone and iPad processors by almost 20 percent. Speaking with Korean newspaper The Hankyoreh, the unnamed official added that prices were agreed upon at the beginning of each year and "aren't changed easily."

    Monday's report in rival paper Chosun claimed Apple and Samsung have a supply agreement that runs through to 2014, and unless "special cost factors" were involved, unit prices have traditionally stayed level.


     


    I was wondering when someone would post this. So much arguing over a rumor and now we have another rumor that contradicts the first. Only this time what's being said makes more sense than the original and is far more likely to be true.


     


    My prediction? Haters everywhere will ignore the second rumor and give more weight to the first one, since it aligns with their belief system.

  • Reply 29 of 36
    Samsung has denied this rumor... Whats all the speculation about?
  • Reply 30 of 36

    Quote:

    Originally Posted by AppleInsider View Post



    If Samsung does in fact increase the price of building mobile processors for Apple, the change is expected to reduce the company's overall margins by as much as 2 percentage points.


     


    If the rumor is true, Apple will cut that deal with TSMC sooner.  Apple might even pay TSMC a little extra, since their bargaining position would be slightly weaker, but it would be worth it in the long run.  Better to eliminate any dependency on Samsung, especially for critical components like the AX SoCs.


     


    And if the rumor is false, this is just another of many successful AAPL price manipulation stunts.  Some shorter out there just minimized his/her losses.

  • Reply 31 of 36


    Samsung has denied raising the chip prices, AppleInsider is spreading rumours again.


     


    http://www.thestreet.com/story/11766909/1/apple-investors-can-relax-a-little-bit.html


     


    After reports earlier in the week that the South Korean technology giant was raising application processor (AP) prices on Apple by as much as 20%, a Samsung Electronics official denied the reports to The Hankyoreh, a Seoul-based newspaper. The unnamed official noted that prices are set at the beginning of the year and aren't changed easily.

  • Reply 32 of 36
    and all the reason to say goodbye to Samsung.. Apple is better off without them.. its a conflict of interest on Samsung's part..
  • Reply 33 of 36
    hmmhmm Posts: 3,405member

    Quote:

    Originally Posted by jecaron View Post



    and all the reason to say goodbye to Samsung.. Apple is better off without them.. its a conflict of interest on Samsung's part..




    You don't seem to understand your own words. Samsung always made all kinds of stuff, including phones. Apple knew this in advance, so there's really no argument there. Now if you argued that they should try to avoid funding their own competition, you might have a point. They'd still fund other competition, such as LG.

  • Reply 34 of 36
    drblankdrblank Posts: 3,383member

    Quote:

    Originally Posted by AppleSauce007 View Post


    Come on TSCM step up and take the business from away Samsung already.


     


    Time will tell.



    Chip fab plants tend to cost a couple of Billion dollars to build each plant and it takes a little while to build each plant and get the equipment to turned on the chip production.


     


    Apple should have worked with more than one supplier in the first place, but I guess they didn't have enough volume several years ago.


     


    I personally think Apple should pony up the money to build at least two plants so they can be prepared to pull the switch and just make all of their own chips.  But Apple's probably a little nervous since chip fabrication is outside their normal core competencies.

  • Reply 35 of 36
    drblankdrblank Posts: 3,383member

    Quote:

    Originally Posted by jecaron View Post



    and all the reason to say goodbye to Samsung.. Apple is better off without them.. its a conflict of interest on Samsung's part..


    TOTALLY.  Samsung is definitely a two faced company.  They are also going to court for yet another price fixing scandal they were involved in.

  • Reply 36 of 36


    Originally Posted by Yojimbo007 View Post

    Samsung has denied this rumor... Whats all the speculation about?




    Does anyone trust anything Samsung says at this point?

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