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Apple Inc. Message Board

  • roy.tyrell roy.tyrell Aug 27, 2012 8:44 PM Flag

    Samsung SOLE Supplier of Critical iPhone and iPad Components



    "...Apart from being the sole supplier of micro processors for the iPhone and iPad, Samsung also supplies DRAM and NAND-type memory chips and flat screens used in popular Apple gadgets, Reuters stated..."

    "..."Apple needs Samsung to make the iPhone and iPad. Period. Samsung is the sole supplier of Apple's processing chips and without Samsung, they can't make these products," James Song, an analyst at KDB Daewoo Securities, told Reuters. "Samsung might be considering lots of options to leverage its components business' importance and pressure Apple, and Apple could be also well aware of this...."

    Apple is a distributor that just picked a very big fight with it's most important (and in some cases ONLY) supplier.

    Not a winning strategy. The fact that Samsung could actually hold a meeting to decide AAPL fate is not good.

    For now they've decided to let AAPL live, but it won't be long before they send in the hit-men a la "scarface" style to take out tony montana of the computer world (bye bye AAPL)

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    • If Apple really had no good alternatives to Samsung, as many here are saying, then Samsung would have been charging Apple much more for their components all along.

      One reason Apple's profit margins are so high is that they are able to negotiate very large component deals for very favorable prices. That is not consistent with there being limited supplier options.

      It is simple supply and demand. If potential component suppliers were limited, then they would be forcing Apple to pay a lot more for the components. Clearly, that is not the case.

      And as I said to begin with, how does it benefit Samsung to lose their single, largest customer?

      Sounds like a recipe for disaster for Samsung.

      Sentiment: Hold

    • Apple is Samsung's biggest customer.

      So, yeah, deciding not to supply Apple would be a real good idea.

      And, of course, there are no other suppliers who could not grab Apple's business.

      Hello, Intel?

      Sentiment: Hold

      • 1 Reply to gulc94
      • There are only 2 companies that can make the Plasma Display for Apple, Samsung and Sharp. Sharp is on its way to bankruptcy so what choice does Apple have. Samsung parts for Apple is about 30% of their business, a low profit margin business Samsung could live without.
        Intel could make that processor chip for Apple, Intel does not come cheap, 3 to 4 times the price that of Samsung's A5, in my opinion. Samsung should double the price of their Plasma Display to Apple and put the pressure on, companies that make their own phones should have a bigger profit margin than companies like Apple that depend on them for everything..

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