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Print 70 comment(s) - last by Xplorer4x4.. on Nov 17 at 3:34 PM

Samsung hikes up prices on Apple

The legal battles between Samsung and Apple have reached near legendary proportions. Apple won a major decision against Samsung in U.S. courts where the jury awarded Apple $1 billion in damages. Samsung is appealing that ruling and is even trying to get the case thrown out of court by alleging juror misconduct.

Apple lost a patent infringement suit against Samsung in Europe and was forced to run apology ads in major publications stating that Samsung did not copy the iPad.
 
Reports are now coming in that Samsung Electronics has recently raised the price it charges for mobile processors to Apple. Samsung supplies the processors for the popular Apple iPad and iPhone.

According to a source claiming to be familiar with negotiations between the companies, Samsung increased the price of processors it provides the Apple by 20%.

"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.)"

Apple was, understandably, was unhappy with the price hike and initially refused to pay it. However, it came back and agreed to pay the additional costs when no alternative provider could be found.
 
The source also says that Apple buys all of its application processors from Samsung and purchased an estimated 130 million units last year. The source also estimates that Apple will purchase over 200 million application processors from Samsung this year.
 
One last tidbit the source noted was that Samsung has a long-term contract to provide the application processors to Apple that runs through 2014. Neither Apple nor Samsung have officially commented.

Source: Market Watch



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RE: Ouch!!
By ritualm on 11/12/2012 3:55:13 PM , Rating: 3
quote:
Lets slip back into the real world and rational discourse shall we.

Former FRB chairman Alan Greenspan once warned about "Irrational exuberance" in the stock market. Every last one of your comments is proof of your wrongful misguided optimism of everything Apple.

Now let's dissect your foundation of lies.
quote:
The only way Apple will be beaten is if other companies can make products that are more attractive than Apple's and sell them in very large numbers across the global markets number and at a profit.

Except this is wrong. You do not need to sell your products at a profit to secure significant market share. Microsoft and Sony did exactly that with their Xboxes and PS3s, by selling those consoles initially at a hefty loss. In fact MS could throw money at its money-losing Xbox division for years simply because it could.

There is nothing stopping Apple from selling its iCrap at a loss for a year or two - the company has more immediate cash reserves than the Obama Administration.
quote:
The only way to slow down Apple's growth, let alone beat them, is in the market.

There is a surefire way to crash the Apple train: kill its supply lines. Stalin did that against Germany's eastern front in WWII and forced Hitler to go defensive. Considering Apple manufactures nothing in-house, there is more than one way to choke its assembly line.

A little snowball rolling down a hill at the top of Mount Everest becomes a landslide several miles below. A 20% cost increase in smartphone/tablet SoCs and severing the display contract are just the beginning.
quote:
Their last two products, the iPhone 5 and the iPad Mini, will be respectively the world's top selling handset and tablet in the next quarter and for most of next year.

Here is another aspect that you are not personally aware of: the iPhone 5 and the iPad Mini are the biggest causes of crime in the United States. Their high resale values are tantalizing money spinners for Knockout King participants and amateur scammers.
quote:
They are selling as fast as Apple can make them across the world markets, they are very profitable for Apple.

That's why any disruptions in the supply lines will ultimately hurt Apple.

Steve Jobs vowed nuclear holocaust with everyone on the Android camp. He was wrong. The correct term is nuclear winter. Losing and breaking supply contracts for Apple won't necessarily destroy Samsung, but the flip side is devastating for Apple. TSMC is not willing to suck the milk off Tim Cook's left tit in exchange of an exclusive supply contract, that's two major foundries out of Apple's radar.

Whose sane company will make chips for Apple, knowing that Cupertino is more delicate and fickle than the Northeastern US weather patterns of late and willing to "cut the hand that feeds them"?
quote:
On the legal front Apple's long legal war of attrition is moving ahead, the most recent victory over HTC was a step forward.

Mutually assured destruction. HTC is in a irrecoverable downward spiral, and Apple just kickstarted its own decline. One step forward, 99 steps back, good work mongoloid.
quote:
If anybody in trouble with the regulators it's not Apple

If anybody in trouble with CONTEMPT OF COURT it's not Android :)

Keep 'em comin, anti-heterosexual internet gangster. I'd love to use remote-iPhone-controlled B-stock OCZ power supplies as bomb material against the likes of you zombie hordes.


RE: Ouch!!
By Tony Swash on 11/12/12, Rating: -1
"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs














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