Apple, when the walls fell.

[Sam I Am]

Apple buys most of their displays and their processors from Samsung. Stupid is as stupid does.

Karam.

First, Samsung strikes back against Apple with their displays and now their processors.

This give new credence to, don't **** where you eat.

Could a company be more stupid?

====================================

Samsung hits Apple with 20% price hike

Samsung Electronics , the world's largest technology firm by revenue, raised the price of mobile processor supplied to Apple Inc. AAPL -0.58% by 20% recently, Chosun Ilbo reported Monday, citing a person familiar with negotiations between the two tech giants.

"Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor," the person was quoted as saying in the report. "Apple first disapproved it, but finding no replacement supplier, it accepted the (increase.)"

Complete Story

[ROUSH8692]

Crazy thing is they do stuff with Samsungs parts that Samsung can't even do LOL

[Sam I Am]

Originally Posted by ROUSH8692

Crazy thing is they do stuff with Samsungs parts that Samsung can't even do LOL

This statement doesn't make any sense. Explain what you mean? Make an iPhone?

[Reality]

First rule of business is to accept deals like that if you have no choice, but immediately put forth a plan to remove yourself from that deal as soon as possible. Ultimately, I believe Apple will make most of their own parts unless there are abundant manufacturers to choose from. Relying heavily on one company for any part puts your company at risk of price gouging and supply shortages and makes your success fully dependent on the success of another company where you have no control.

That said, I don't blame Samsung for doing it. It's not a "revenge" factor as so many will claim it to be. It is simple business logic. You just had a $1 billion expense added to the books and you need to offset that by raising your prices or cutting your work force. Raising prices is the easiest, especially when it comes to parts where you are a primary supplier to large clients.

#reality

[Future]

I wouldn't be surprised if Apple simply uses this to justify a price increase. It shouldn't be a major increase, andApple customers probably won't even notice the difference if it happen.s

[trickblue]

This reminds me of the Panasonic (Matsus hita) vs. Sony back in the 80's, 90's and 00's. Really fascinating if you ever look it up.

Panasonic hated Sony so much that they were willing to set technology back in order to win... and they did.

VHS vs BetaMax
DAT vs MiniDisc
VHSc Camcorder vs Super 8 Camcorder

Sony finally won with BluRay DVD vs HD DVD

Panasonic is a mega corporation and parts supplier and threatened to hold off parts to other electronics companies if they supported Sony formats...

[BrAinPaiNt]

Darmok and Jalad at Tanagra

Shaka, when the walls fell

[Phoenix]

Originally Posted by BrAinPaiNt

Darmok and Jalad at Tanagra

Shaka, when the walls fell

Ha ha, this is exactly what I was thinking but didn't post earlier

[a_minimalist]

Originally Posted by Reality

First rule of business is to accept deals like that if you have no choice, but immediately put forth a plan to remove yourself from that deal as soon as possible. Ultimately, I believe Apple will make most of their own parts unless there are abundant manufacturers to choose from. Relying heavily on one company for any part puts your company at risk of price gouging and supply shortages and makes your success fully dependent on the success of another company where you have no control.

That said, I don't blame Samsung for doing it. It's not a "revenge" factor as so many will claim it to be. It is simple business logic. You just had a $1 billion expense added to the books and you need to offset that by raising your prices or cutting your work force. Raising prices is the easiest, especially when it comes to parts where you are a primary supplier to large clients.

#reality

If Apple starts to manufacture its own parts I can't even imagine how many jobs that would create as well as how much larger their margins would be.

[AmarilloCowboyFan]

Originally Posted by BrAinPaiNt

Darmok and Jalad at Tanagra

Shaka, when the walls fell

haha, nice reference

[Sam I Am]

Originally Posted by BrAinPaiNt

Darmok and Jalad at Tanagra

Shaka, when the walls fell

I was wonder when someone was actually get the reference.

[theogt]

Don't mean to interrupt the circle-jerk, but there are many other manufacturers of Apple's screens.

[Reality]

Originally Posted by BrAinPaiNt

Darmok and Jalad at Tanagra

Shaka, when the walls fell

That episode was annoying .. I kept thinking, "Draw a freaking picture already because saying it over and over isn't helping!"

#reality

[Reality]

Originally Posted by theogt

Don't mean to interrupt the circle-jerk, but there are many other manufacturers of Apple's screens.

I believe Sharp is one of their screen suppliers, but I believe some device screens are exclusive to Samsung.

#reality

[TheCount]

Originally Posted by Future

I wouldn't be surprised if Apple simply uses this to justify a price increase. It shouldn't be a major increase, andApple customers probably won't even notice the difference if it happen.s

Apple's price scheme has never worked that way. They don't do sales and they don't hike prices. They charge enough of a premium already on their products to cover fluctuations like this.

As far as Samaung charging more, I doubt they are raising prices just for Apple. Pretty sure that's illegal.