Apple's Supply Chain Diversification Hitting Samsung's Chip Business Hard

[AxoNeuron]

I'm sure Tim Cook is quietly smiling in his Cupertino office, so am I.

Keep in mind, Samsung is a "Chaebol", one of the enormous South Korean multinational conglomerates, and they have a business model that splits them in to many different divisions. The problems and failures of one division (chip fab) will not necessarily harm other divisions (mobile).

I think that Samsung is incredibly innovative in some areas, like SSD technology (3D NAND!) and display technology (AMOLED) but they have got to stop this copy-and-burn technique.

 

[Trapezoid]

I'm sure Tim Cook is quietly smiling in his Cupertino office, so am I.

Keep in mind, Samsung is a "Daimyo", one of the enormous South Korean multinational conglomerates, and they have a business model that splits them in to many different divisions. The problems and failures of one division (chip fab) will not necessarily harm other divisions (mobile).

I think that Samsung is incredibly innovative in some areas, like SSD technology (3D NAND!) and display technology (AMOLED) but they have got to stop this copy-and-burn technique.

Well for their sake we can hope they learned that they need to invest in r&d and not just marketing. You could only play the "our users don't stand in lines" bit a few times (and when your users begin to also stand in line its time to stop).

The s5 was a failure by Samsung standards, and they're at their lowest in two years. If that doesn't light a fire under them to stop copying, nothing will.

 

[anomie]

I'm sure their eventual plan is to not give Samsung one cent for anything and bring as much of their component needs in house as possible to maximise profit.

Wow you re really seeing through them, aren't you?

 

[pankajdoharey]

Samsung had a great run

Smsung had a great run , but the fierce competition on screwing them over eventually all these Manufacturers will die out evn Lg and HTC has ****** phones , Eventually Apple will iphone the market , but i believe Apple has to release entry level phones like they released entry level ipods.

 

[osofast240sx]

Samsung has bigger problems it's called China!!!

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Smsung had a great run , but the fierce competition on screwing them over eventually all these Manufacturers will die out evn Lg and HTC has ****** phones , Eventually Apple will iphone the market , but i believe Apple has to release entry level phones like they released entry level ipods.

As long as consumers can get interest free payments for iPhones it will never happen.

 

[luv2seaters]

Awwwwwww poor copy cat samsung

You are finally getting your just rewards.KARMA.

 

[gnasher729]

Surely since iPhone sales are ridiculously low compared to Android sales, Samsung must make a ton of money making processors for Android phones? Surely all these gazillions of Android phones use very powerful, very expensive processors that make lots of profit for Samsung, just like the iPhone processors?

Or could it be that there is something wrong with that argument? That all these many Android phones use the cheapest of cheap parts including processors, and nobody makes money from them? Or could it be that all the other phone manufacturers avoid Samsung like the plague?

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Whilst I know, and can understand at some level the hatred shown towards Samsung by people who are very fond of Apple.

Please do not forget 2 very VERY important points.

1: Without Samsung the iPhone would not be anything like as good as it is now from a component quality standpoint.

Without the iPhone, Samsung phones would be worse than they are. Seriously, Samsung had a 130 page book describing iPhone features and comparing them with Samsung features that were subpar.

 

[Mtmspa]

I want Apple to go thermonuclear on Samsung. Bury those SOBs out of existence.

 

[BornAgainApple]

They'll live

 

[Taz Mangus]

No. Samsung killed everything that Sony had, HTC, other companies. And it was never because they made better products.

Just cheap me too copies. It helps when you own the country.

Samsung was also caught doing unfair appliance dumping tactics.

 

[kdarling]

The s5 was a failure by Samsung standards, and they're at their lowest in two years. If that doesn't light a fire under them to stop copying, nothing will.

The Galaxy S5 was not a copy of anything. It was just weird all on its own, with that Band-Aid type cover. Which is why they replaced the design manager.

What Samsung should've done was get inspired by HTC's metal design, like Apple apparently is doing with the iPhone 6.

 

[Taz Mangus]

The Galaxy S5 was not a copy of anything. It was just weird all on its own, with that Band-Aid type cover. Which is why they replaced the design manager.

What Samsung should've done was copy HTC's metal design, like Apple apparently is doing with the iPhone 6.

The gold color did not help its looks either.

 

[Trapezoid]

The Galaxy S5 was not a copy of anything. It was just weird all on its own, with that Band-Aid type cover. Which is why they replaced the design manager.

What Samsung should've done was copy HTC's metal design, like Apple apparently is doing with the iPhone 6.

Well yeah they'd be dumb to copy after losing the patent case and with that we got the Galaxy s5. A poor effort that shows what happens when Samsung doesn't copy.

 

[osofast240sx]

What Samsung should've done was get inspired by HTC's metal design, like Apple apparently is doing with the iPhone 6.

Not sure that would have helped.

 

[Trapezoid]

Not sure that would have helped.

It wouldnt have. Samsung has many more problems than just design.

 

[Piggie]

I want Apple to go thermonuclear on Samsung. Bury those SOBs out of existence.

Riiiiiight.

Like that's going to happen.

Samsung will crash at some point.

Apple will crash and burn at some point.

All Apple makes are a couple of mobile phones, couple of tablets, few laptops, couple of all in one desktop computers and a pro, which is not really a pro, computer for video work.

They could vanish tomorrow and no one would really notice anything.
It's just really toy stuff. Nice looking and well made, but pretty unimportant in the scheme of how the world works.

 

[SwissMac2]

Couldn't happen to a nicer company.

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All Apple makes are a couple of mobile phones, couple of tablets, few laptops, couple of all in one desktop computers and a pro, which is not really a pro, computer for video work.

They could vanish tomorrow and no one would really notice anything.
It's just really toy stuff. Nice looking and well made, but pretty unimportant in the scheme of how the world works.

Err, except they are the number one music retailer, the world's richest company, most profitable mobile phone maker and on top of every CEO's list of Most Admirable Companies.

If anyone's unimportant, it's Samsung.

 

[kdarling]

Without the iPhone, Samsung phones would be worse than they are. Seriously, Samsung had a 130 page book describing iPhone features and comparing them with Samsung features that were subpar.

That report was not about copying the iPhone per se. In fact, it explicitly said in places that they should NOT look so close. It was more about improving the user experience by being fun and easy to use, like the iPhone.

In the end, only about ten items were "copied", and even those were pretty generic stuff like "Show Bluetooth connection types in Bluetooth menu." and "Phone call End button should be larger" and "Make it easier to switch between photo or video camera mode." Not exactly earth-shattering stuff.

Every company does reviews and comparisons, and sometimes takes good ideas from others and uses them. Heck, I'm sure that someone could come up with a pretty long list of UI features that iOS seems to have copied from others.

 

[Mtmspa]

Couldn't happen to a nicer company.

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Err, except they are the number one music retailer, the world's richest company, most profitable mobile phone maker and on top of every CEO's list of Most Admirable Companies.

If anyone's unimportant, it's Samsung.

You can't let these facts stand in the way of a Apple hater.

 

[osofast240sx]

It wouldnt have. Samsung has many more problems than just design.

I guess Samsung's race to the bottom over. Now it's all these Chinese OEM putting out their own products are in the lead.

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Riiiiiight.

Like that's going to happen.

Samsung will crash at some point.

Apple will crash and burn at some point.

All Apple makes are a couple of mobile phones, couple of tablets, few laptops, couple of all in one desktop computers and a pro, which is not really a pro, computer for video work.

They could vanish tomorrow and no one would really notice anything.
It's just really toy stuff. Nice looking and well made, but pretty unimportant in the scheme of how the world works.

Their competition does not even think that so how could you? You have more insight than the CEO of Microsoft? And hundreds of fortune 500 CEOs?

 

[antbikerjl]

Couldn't happen to a nicer company.

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Err, except they are the number one music retailer, the world's richest company, most profitable mobile phone maker and on top of every CEO's list of Most Admirable Companies.

If anyone's unimportant, it's Samsung.

We do not know Samsung Group's capital as it has never been, and never will be disclosed (as it is legally not bound to, nor would they want to disclose). That is the benefit of being a privately owned conglomerate (some of their divisions are publicly traded however). Apple is NOT a privately held company, so it must disclose its capital to its shareholders.

One thing is for sure, the true value, cash-on-hand, or finances in general of Samsung Group is a mystery. I'd wager they have more cash, cash equivalents, total assets available to them than Apple and also have substantially more political power/influence to swing.

Just an easy find, Samsung Electronics (one of a dozen Samsung offshoots) had $30 billion in cash in 2012. That was triple from the previous year. People also need to add to the fact that Samsung's divisions have far greater expenses than Apple. Those nice fab factories the iphone's components are from, they cost money to build/run. Apple does not build anything, that greatly influences their expenses and inflates their profit.

 

[swy05]

Well for their sake we can hope they learned that they need to invest in r&d and not just marketing. You could only play the "our users don't stand in lines" bit a few times (and when your users begin to also stand in line its time to stop).

The s5 was a failure by Samsung standards, and they're at their lowest in two years. If that doesn't light a fire under them to stop copying, nothing will.

In case you've been under a rock, Samsung heavily invests in R&D. Yes, more than 3X of Apple.

So how again has the S5 been a copycat? What is it a copy of?

 

[osofast240sx]

In case you've been under a rock, Samsung heavily invests in R&D. Yes, more than 3X of Apple.

That's because they throw money at the wall! Apple is more strategic and precise on monies spent on r&d marketing ect.

 

[Piggie]

Couldn't happen to a nicer company.

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Err, except they are the number one music retailer, the world's richest company, most profitable mobile phone maker and on top of every CEO's list of Most Admirable Companies.

If anyone's unimportant, it's Samsung.

You do know what Samsung does worldwide as a overall company do you?
They don't just make phones, TV's and some electrical bit you know.

Apple whilst very rich and admired for profits, I'm sorry but they are nobody in the grand scheme of things.

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I guess Samsung's race to the bottom over. Now it's all these Chinese OEM putting out their own products are in the lead.

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Their competition does not even think that so how could you? You have more insight than the CEO of Microsoft? And hundreds of fortune 500 CEOs?

Can you name any company that has stayed at the top forever?

Also closed systems never win out in the longer term.

Now is Apple's time to shine.

 

[osofast240sx]

You do know what Samsung does worldwide as a overall company do you?
They don't just make phones, TV's and some electrical bit you know.

Apple whilst very rich and admired for profits, I'm sorry but they are nobody in the grand scheme of things.

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Can you name any company that has stayed at the top forever?

Also closed systems never win out in the longer term.

Now is Apple's time to shine.

Name one part of Samsung busmiess that do not sell at razor thin margins? That's the difference!
Apple has their own CDN that's the difference!
Apple has their own interconnects at all the major ISP's that's the difference!