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11-12-2012, 07:03 AM
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#1
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Moderator
SFF, Notebooks, Pre-Built/Barebones PCs
Join Date: Aug 2003
Posts: 24,567
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Samsung Hits Apple With A 20% Price Hike
http://www.marketwatch.com/story/sam...ort-2012-11-11
Quote:
Samsung Electronics , the world's largest technology firm by revenue, raised the price of mobile processor supplied to Apple Inc. AAPL +0.72% 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.)"
The two firms have started to reflect the new supply price recently, the report added, citing the same person.
According to the report, Apple buys all APs used for production of iPhone and iPad from Samsung Electronics with the volume estimated to be 130 million units last year and more than 200 million units this year.
Samsung Electronics has a long-term contract to supply APs to Apple until 2014, the report added.
Samsung Electronics and Apple's South Korea office declined to comment on the report.
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The two have been waging war in courtrooms worldwide, and I was beginning to wonder when the client/supplier relationship was going to hit a sour note.
This must be the "Lucy Koh Tax".
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Nate Silver Is God
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11-12-2012, 07:11 AM
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#2
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Diamond Member
Join Date: Jan 2007
Location: Salamandastron
Posts: 3,605
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Quote:
Originally Posted by jpeyton
The two have been waging war in courtrooms worldwide, and I was beginning to wonder when the client/supplier relationship was going to hit a sour note.
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Exactly, you can't be suing them and have them making major parts for your devices at the same time.
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“Defend the weak, protect both young and old, never desert your friends. Give justice to all, be fearless in battle and always ready to defend the right." - The law of Badger Lords
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11-12-2012, 07:19 AM
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#3
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Platinum Member
Join Date: Apr 2002
Location: Boston, Ma
Posts: 2,705
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Naw; it's not a sour relationship; samsung needs the money to cover court costs 
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11-12-2012, 07:37 AM
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#4
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Lifer
Join Date: Jan 2005
Location: UK
Posts: 11,414
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Quote:
Originally Posted by you2
Naw; it's not a sour relationship; samsung needs the money to cover court costs |
Its like Apple customers are paying for both sides in the court cases. :what:
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...and the more we drink, the more we sing Calon Lan.
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11-12-2012, 07:48 AM
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#5
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Diamond Member
Join Date: Sep 2007
Posts: 5,512
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I can see Apple buying a fab before it's all said and done with. They tried once and failed but I can see them looking for another.
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11-12-2012, 08:04 AM
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#6
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Lifer
Join Date: Feb 2002
Posts: 11,328
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Apple plans to switch to TSMC next so why not? Apple is only using Samsung because they have to, not because they want to. Samsung recently spent billions retooling their US plant for Apple.
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11-12-2012, 08:05 AM
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#7
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Junior Member
Join Date: Oct 2012
Posts: 5
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Quote:
Originally Posted by boomhower
I can see Apple buying a fab before it's all said and done with. They tried once and failed but I can see them looking for another.
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I agree with your statement wholeheartedly and I see Apple making a few changes to its business model in the near future to better compete against its rivals, This news helps Samsung in the short term but in the long term it could hurt them. If Apple moves to a different fab or buys its own thus giving them volume control of one of its most important parts watch out
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11-12-2012, 08:11 AM
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#8
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Lifer
Join Date: Oct 2002
Posts: 13,770
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The only reason I see Samsung doing this is if they know they are going to lose Apple as a customer...
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11-12-2012, 08:22 AM
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#9
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Lifer
Join Date: Jan 2005
Location: UK
Posts: 11,414
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Quote:
Originally Posted by Dari
The only reason I see Samsung doing this is if they know they are going to lose Apple as a customer...
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I don't really think either of them wants to do business with the other.
Samsung needs the volume production for its own products and Apple need to work with someone that prioritizes Apples needs.
Buying your own Fab is not a trivial thing though. It can be a money sink if you don't get it right quickly. Also I'm not sure I could handle a round of patent cases wrt Fabbing processes. That really could cause chaos.
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...and the more we drink, the more we sing Calon Lan.
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11-12-2012, 08:29 AM
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#10
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Lifer
Join Date: Oct 1999
Location: NYC
Posts: 14,988
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Good. Samsung doesnt need apple as much as it used to. Let apple create their own fab and charge their user base even more.
Or, apple could go back to IBM.
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11-12-2012, 08:32 AM
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#11
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Diamond Member
Join Date: Jan 2007
Location: Salamandastron
Posts: 3,605
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Quote:
Originally Posted by ponyo
Apple plans to switch to TSMC next so why not? Apple is only using Samsung because they have to, not because they want to. Samsung recently spent billions retooling their US plant for Apple.
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TSMC being a sole supplier for Apple might not be good for other companies that rely on them to produce their own chips.
__________________
“Defend the weak, protect both young and old, never desert your friends. Give justice to all, be fearless in battle and always ready to defend the right." - The law of Badger Lords
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11-12-2012, 08:35 AM
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#12
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Golden Member
Join Date: Oct 2000
Posts: 1,914
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Quote:
Originally Posted by Jodell88
TSMC being a sole supplier for Apple might not be good for other companies that rely on them to produce their own chips.
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Or Apple themselves. TSMC has practically tripped over themselves on nearly every die shrink so far.
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Nothing funny yet but keep reading maybe eventually.
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11-12-2012, 08:44 AM
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#13
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Diamond Member
Join Date: Nov 2003
Posts: 8,154
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Quote:
Originally Posted by Jodell88
TSMC being a sole supplier for Apple might not be good for other companies that rely on them to produce their own chips.
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I remember an article about how Apple (and Qualcomm) tried to get VIP access to TSMC and they got turned down. TSMC said they'd make Apple's chips, but no VIP access.
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11-12-2012, 08:46 AM
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#14
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Diamond Member
Join Date: Jul 2001
Location: Rock Hill, SC
Posts: 4,272
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Yeah, TSMC isn't the most reliable.
I don't see Apple buying anything, but I could see them make a significant investment in another company to help them ramp up their production capability. Similar to what they've done with Sharp.
This has been coming for years. Apple is the type of company that likes to be as much in control of their supply line as possible.
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11-12-2012, 08:48 AM
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#15
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Lifer
Join Date: Sep 2003
Posts: 14,961
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The issue about components has always been about volume. No one is as capable as Samsung at actually meeting Apple's demand. If Apple switches to someone like TSMC and if that company can't make enough chips then there will be iphone/ipad shortages, which means Apple will lose a lot of money.
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Quote:
Originally posted by: binister
i find preslove guilty of being awesome
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What is jesus's middle name?
Quote:
Originally Posted by Ns1
...I was in it for the mutton kebabs but found myself eating penis. It happens.
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11-12-2012, 08:55 AM
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#16
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Golden Member
Join Date: Oct 2002
Location: Minnesota
Posts: 1,566
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Wasn't their a story about the iPhone5 chip not being from Samsung or it was made by Samsung but the tech was Apple so Apple did not let Samsung see the tech in it. Anyone know what I am talking about?
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"this is Jim Kiler step away from the window" -Robert Culp as Jim Kiler in Outrage.
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11-12-2012, 09:07 AM
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#17
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Diamond Member
Join Date: Oct 2005
Posts: 4,041
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The SoC is designed by Apple, but manufactured by Samsung.
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11-12-2012, 09:11 AM
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#18
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Lifer
Join Date: Jan 2005
Location: UK
Posts: 11,414
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Quote:
Originally Posted by JimKiler
Wasn't their a story about the iPhone5 chip not being from Samsung or it was made by Samsung but the tech was Apple so Apple did not let Samsung see the tech in it. Anyone know what I am talking about?
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Fabbed by Samsung still. Not sure how Apple would stop Samsung knowing what's in it whilst still making it though.
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...and the more we drink, the more we sing Calon Lan.
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11-12-2012, 09:38 AM
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#19
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Diamond Member
Join Date: Aug 2000
Posts: 8,552
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If Apple wanted to get into the fab business, they should have bought AMD before they spun off the foundry business. I wonder what the asking price on Global Foundries is now?
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11-12-2012, 10:00 AM
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#20
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Diamond Member
Join Date: Oct 1999
Location: 92557
Posts: 4,414
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What's a 20% increase equate to? $4-5's? Would think the Apple tax would cover it.
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11-12-2012, 10:59 AM
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#21
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Diamond Member
Join Date: Feb 2010
Location: New York City
Posts: 3,464
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Samsung would only raise prices on their biggest customer if they knew they were about to lose them. Milk it while it lasts.
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Quote:
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Originally Posted by Neil deGrasse Tyson
God is an ever-receding pocket of scientific ignorance.
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11-12-2012, 11:03 AM
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#22
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Lifer
Join Date: Jan 2005
Location: UK
Posts: 11,414
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Quote:
Originally Posted by badb0y
Samsung would only raise prices on their biggest customer if they knew they were about to lose them. Milk it while it lasts.
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Plus they know Apple can't get anyone else to do it for them.
__________________
...and the more we drink, the more we sing Calon Lan.
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11-12-2012, 11:06 AM
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#23
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Lifer
Join Date: Feb 2002
Posts: 11,328
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Quote:
Originally Posted by badb0y
Samsung would only raise prices on their biggest customer if they knew they were about to lose them. Milk it while it lasts.
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It's no secret Apple is dropping Samsung for TSMC. I don't see what the big deal is on the 20% increase. Apple and others ask for price reduction from their suppliers all the time. And when the yield and supply is tight, it's also normal for the suppliers to raise prices. It's just business as usual mixed with Apple/Samsung drama.
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11-12-2012, 11:20 AM
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#24
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Golden Member
Join Date: Oct 2000
Posts: 1,914
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Quote:
Originally Posted by JimKiler
Wasn't their a story about the iPhone5 chip not being from Samsung or it was made by Samsung but the tech was Apple so Apple did not let Samsung see the tech in it. Anyone know what I am talking about?
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Yeah previous chips where designed by Samsung according to the specs of Apple (basically re-branded Samsung chips) but starting with the A4 Apple had been designing their own (pretty much stock cores with the GPU of their choice). The A6 and the hub bub behind that is the fact that for the first time Apple used its architecture license to actually design their own cores that worked with their instruction set.
As for Samsung. The FAB guys and the actual Engineering group is kept separate. When Google said they were placing walls to keep themselves out of Motorola's choices. Samsung actually has to do so. Sure they can get preferential treatment. But the Engineers aren't going to be allowed to look over the Apple designs. Apple will have some oversight rights in production and probably Samsung has several ISO and other Certifications for data and information security to alleviate any worries and of the other companies they are producing chips for.
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Nothing funny yet but keep reading maybe eventually.
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11-12-2012, 11:23 AM
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#25
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Diamond Member
Join Date: Jul 2001
Location: Rock Hill, SC
Posts: 4,272
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Quote:
Originally Posted by ponyo
It's no secret Apple is dropping Samsung for TSMC. I don't see what the big deal is on the 20% increase. Apple and others ask for price reduction from their suppliers all the time. And when the yield and supply is tight, it's also normal for the suppliers to raise prices. It's just business as usual mixed with Apple/Samsung drama.
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I'm with you. I don't think there's anything to see here.
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This post paid for by the committee to re-invade Vietnam.
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