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eewiz
Apple has been around for last 3+ decades and has invented/reinvented 4 of the ...
abhayadev_s
good for samsung to shift focus from large single buyer.. after a couple of ...
Apple said to cut Samsung memory order
Peter Clarke
9/7/2012 4:57 AM EDT
LONDON – Apple Inc. has reduced its order with Samsung Electronics Co. Ltd. for memory ICs for its forthcoming model of iPhone, according to a Reuters report that referenced an unnamed source.
Samsung supplies a variety of components to Apple – including processors, LCDs, DRAM and NAND flash memory – but it is also a rival, selling Galaxy smartphones and tablet computers that compete with Apple's iPhone and iPad. And the two companies are entangled in a number of legal battles around the world alleging patent infringement and copying of the look and feel of mobile equipment.
It is not clear whether Apple is cutting back its memory order because of subdued general economic forecasts for the fourth quarter, or because it is trying to reduce its dependence on its rival, or a mixture of the two.
The Reuters report quoted a source saying Apple has been cutting back orders to Samsung as it seeks to diversify its sources of memory but that Samsung remains on the list of suppliers for the new iPhone.
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agk
9/7/2012 8:41 AM EDT
Every where many things are interpolated and the rumors rounds in and out.
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Stanley_
9/7/2012 11:47 AM EDT
this is also good for samsung to diversify customer base. relying on one big customer is no good. just look at what happened to freescale and TI when motorola and nokia failed.
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eewiz
9/7/2012 11:58 AM EDT
Unfortunately there are no other customers that can provide Apple's volumes. And remaining ones might have supplier agreements with other manufacturers. Ineffect, there is not much hope of "diversifying" and keeping the volumes(without which even the price might go up!)
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Stanley_
9/7/2012 7:53 PM EDT
Apple cannot pull 100% volume out of samsung. For nand flash, samsung has 40% market share. Only they can do is to reduce the volume, while other customer will be happy to use samsung chip. samsung SSD is in fact a factor for product choice, so samsung has nothing to lose in this game.
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Stanley_
9/7/2012 7:56 PM EDT
call this as a balloon effect, as if squeeze one side of balloon, the other side bulge, but total air in the balloon maintains.
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lonecowboy
9/7/2012 12:06 PM EDT
Truth behind the scene is.. Apple was ordering at a price lower than the manufacturing cost. Samsung said NO WAY! SK Hynix and Toshiba said NO WAY OUT! other than Apple. These two underdogs accepted Apple's offer very unwillingly. Still complaining..
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DCH
9/10/2012 12:59 PM EDT
Neither Samsung nor Apple is a single entity. Samsung has it's own set of profit overheads for memory vs. tablet. The guys supplying the components to Apple need Apple no matter how much the tablet team would like to cut them off at the knees.
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abhayadev_s
9/18/2012 12:30 AM EDT
good for samsung to shift focus from large single buyer.. after a couple of decade will see no iPhones or not even apple for sure....
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eewiz
9/18/2012 12:59 AM EDT
Apple has been around for last 3+ decades and has invented/reinvented 4 of the most popular industry today.
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