Samsungs biggest customer is...Apple

RockdaMan · 02-14-2011, 11:04 AM

Now that right there is a mind-bending relationship. Samsung is playing both sides of the field.

Just shows that Samsung doesn't care who wins the Android vs. iOS tablet/phone wars a$ long a$ it get$ it$ cut.

Quote:

Apple Inc. (AAPL) is expected to purchase components used for its handheld devices from Samsung Electronics Co. (005930.SE) worth about $7.8 billion this year

Quote:

If the contract pushes through, Apple will become Samsung's largest customer, the paper added.

I can't shake the feeling that if Samsung didn't allow Apple to pre-pay for production capacity and components and sent them elsewhere for them that the result would be higher priced Apple products and a more level competitive field.

murraypaul · 02-14-2011, 11:17 AM

Quote:

Originally Posted by RockdaMan

I can't shake the feeling that if Samsung didn't allow Apple to pre-pay for production capacity and components and sent them elsewhere for them that the result would be higher priced Apple products and a more level competitive field.

And $7.8bln less revenue for Samsung.

RockdaMan · 02-14-2011, 01:12 PM

Context: http://www.the-digital-reader.com/20...u-might-think/

queentess · 02-14-2011, 01:17 PM

Quote:

Originally Posted by RockdaMan

Just shows that Samsung doesn't care who wins the Android vs. iOS tablet/phone wars a$ long a$ it get$ it$ cut.

Should it care one way or the other?

Grimm · 02-14-2011, 01:42 PM

Quote:

Originally Posted by RockdaMan

Just shows that Samsung doesn't care who wins the Android vs. iOS tablet/phone wars a$ long a$ it get$ it$ cut.

As if this doesn't apply to Apple as well, or most companies for that matter.

elcreative · 02-14-2011, 01:45 PM

Can just see the shareholder meeting... "Yes we told Apple to stuff their $7.8 billion contract because it's unfair to possible Android customers... er, no we haven't got an alternative $7.8 billion of business yet... what do you mean, vote of no confidence in the board???

Quote:

Originally Posted by RockdaMan

...Just shows that Samsung doesn't care who wins the Android vs. iOS tablet/phone wars...
I can't shake the feeling that if Samsung didn't allow Apple to pre-pay for production capacity and components and sent them elsewhere for them that the result would be higher priced Apple products and a more level competitive field.

Namekuseijin · 02-14-2011, 02:22 PM

Samsung is today what Sony used to be...

Kali Yuga · 02-14-2011, 02:45 PM

The WSJ article is behind a paywall. CNet article here: http://news.cnet.com/8301-31021_3-20031814-260.html

What exactly is the problem here? Samsung is a huge company, and provide OEM products to lots of companies -- including ones they compete against.

This is perfectly normal for a business of their size. I really cannot see how this is an example of unconscionable greed.

RockdaMan · 02-14-2011, 04:15 PM

Quote:

Originally Posted by Kali Yuga

The WSJ article is behind a paywall.

No, it's not. You can use google to get to any WSJ article for free.

And see my post entitled 'Context'.

Penforhire · 02-14-2011, 05:47 PM

The playing field feels level enough to me. The lion gets the lion's share.

Don't forget it wasn't that many years ago that Apple's iPhone was a crass upstart in the business. I doubt they got such special treatment back then. They blew the competition away (not all about the hardware, app store did some heavy lifting) when the field was tilted away from them! Remember Steve Ballmer laughing about them entering the field?

It doesn't seem to me that their products are especially cheap and Apple's corporate margins prove it. Good for Samsung, grabbing this much semiconductor business. Good for us, getting fast and power efficient chips out of the deal.

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02-14-2011, 01:12 PM	#3
RockdaMan Banned Posts: 1,644 Karma: 213512 Join Date: Oct 2010 Location: On the other side of over there Device: Pandigital Novel, Kindle G1 (broken), iPod Touch	Context: http://www.the-digital-reader.com/20...u-might-think/

02-14-2011, 02:22 PM	#7
Namekuseijin affordable chipmunk Posts: 1,290 Karma: 9863855 Join Date: Feb 2011 Location: Brazil Device: Sony XPeria ZL, Kindle Paperwhite	Samsung is today what Sony used to be...

02-14-2011, 02:45 PM	#8
Kali Yuga Professional Contrarian Posts: 2,045 Karma: 3289631 Join Date: Mar 2009 Device: Kindle 4 No Touchie	The WSJ article is behind a paywall. CNet article here: http://news.cnet.com/8301-31021_3-20031814-260.html What exactly is the problem here? Samsung is a huge company, and provide OEM products to lots of companies -- including ones they compete against. This is perfectly normal for a business of their size. I really cannot see how this is an example of unconscionable greed.

02-14-2011, 05:47 PM	#10
Penforhire Wizard Posts: 2,230 Karma: 7145404 Join Date: Nov 2007 Location: Southern California Device: Kindle Voyage & iPhone 7+	The playing field feels level enough to me. The lion gets the lion's share. Don't forget it wasn't that many years ago that Apple's iPhone was a crass upstart in the business. I doubt they got such special treatment back then. They blew the competition away (not all about the hardware, app store did some heavy lifting) when the field was tilted away from them! Remember Steve Ballmer laughing about them entering the field? It doesn't seem to me that their products are especially cheap and Apple's corporate margins prove it. Good for Samsung, grabbing this much semiconductor business. Good for us, getting fast and power efficient chips out of the deal.

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