Samsung Planning to Diversify Chip Business Due to Apple

[house70]

[citation][nom]ericburnby[/nom]Perhaps you should think before posting. Samsung isn't cutting off Apple - Apple is switching to other suppliers. It says so right in the article:"He admitted that the move is a response to Apple reducing its reliance on Samsung for its chips."Samsung will be scrambling to find other companies. Who else sells as many devices as Apple that could take up the slack when Apple completes their move from Samsung? It's well known that Apple and Samsung completely dominate smartphones and tablets. Samsung sells parts to Apple for iOS devices and they sell to themselves for their own devices. Basically, Samsung Semi provides the chips for 80% of the devices out there (via Samsung and Apple). You take Apple out of that and suddenly the other 20% are going to be able to make up the difference? This is assuming none of them already buy some products from Samsung.There's no way you can spin it - this is bad news for Samsung. Imagine billions of dollars every quarter leaving your company and going directly into the pockets of your competitors who will now use that money to expand their facilities and improve their products with increased R&D spending.[/citation]
Perhaps you should stop putting words in my mouth.
My comment was about Samsung making the right decision. And it was THEIR decision to make. I don't really care what gave them the impulse to do so, but diversification IS the right thing to do. That was it. Period.
Even without the split between Samsung and Apple, diversification IS STILL the right thing to do. Read my first comment. That was all I have said about this subject.
Clear now? Finally?

Geez.

 

[ven1ger]

[citation][nom]robochump[/nom]According to Goldman Sachs, Apple represents about 80% of Samsung's business, around 9.3 trillion won ($8.8 billion or £5.5 billion) of work. This business could fall to 2.5 trillion won ($2.4b, £1.5b) next year.[/citation]

Try looking at what comprises Samsung, follow the link

http://en.wikipedia.org/wiki/Samsung

They have something like 30-40 subsidiaries and affiliated businesses.

Revenue US$ 247.5 billion (2011)[2]
Net income US$ 18.3 billion (2011)[2]
Total assets US$ 384.3 billion (2011)[2]
Total equity US$ 224.7 billion (2011)[2]
Employees 369,000 (2011)[2]

That 80% you're quoting may be representative of one company under the Samsung brand. Though still doesn't make sense since it would be logical for the same company to provide the materials and hardware for Samsung devices, which happens to be outselling Apple products outside the US. The 80% may only represent the numbers based on the materials they sell outside but what others have said, it makes more sense that the 80% represents how much of Samsung materials are in Apples' devices.

 

[ven1ger]

[citation][nom]ericburnby[/nom]There's no way you can spin it - this is bad news for Samsung. Imagine billions of dollars every quarter leaving your company and going directly into the pockets of your competitors who will now use that money to expand their facilities and improve their products with increased R&D spending.[/citation]

I agree with you that this could hurt Samsung, but then it could also hurt Apple. Several things come to mind, when relying on multiple vendors for parts, there is always the issue of not meeting demand and timeliness of parts. Samsung is difficult to replace especially since no one has either the manufacturing capabilities available or are not willing to take on a large order like Apple's, because of their current actions no manufacturer wants to rely on Apple and they do the same thing they want to with Samsung. Other thing, is that Apple will be paying a lot more for these parts as they will have to deal with multiple vendors for the same parts they could get with Samsung but using volume pricing. Next thing, is that because of multiple vendors that Apple has to work with will depend on the quality of the parts that Apple will be receiving.

Not sure as yet which will hurt more in the long run, Apple or the division of Samsung that provides Apple with its parts. There is going to be several years before the divorce between Samsung and Apple are completed, so it remains to see who rebounds from this divorce best.

 

[stickmansam]

From the sam wiki source Samsung electronics itself (not counting the other parts of samsung) has US$ 148.944 billion of Revune from 2011.....

 

[ericburnby]

[citation][nom]house70[/nom]Perhaps you should stop putting words in my mouth. My comment was about Samsung making the right decision. And it was THEIR decision to make. I don't really care what gave them the impulse to do so, but diversification IS the right thing to do. That was it. Period. Even without the split between Samsung and Apple, diversification IS STILL the right thing to do. Read my first comment. That was all I have said about this subject.Clear now? Finally?Geez.[/citation]
Clear that you're a whiny little troll. Basically calling someone stupid and then complaining when someone does the same to you?

And calling people "fAnatics" with the second letter capitalized like all the 12 year olds do with their favorite memes?

 

[ericburnby]

[citation][nom]Stickmansam[/nom]From the sam wiki source Samsung electronics itself (not counting the other parts of samsung) has US$ 148.944 billion of Revune from 2011.....[/citation]
That still includes a gazillion products like memory chips, processors, components, LCD screens, hard drives, phones, tablets, computers, appliances, TV's, cameras and a whole bunch of other stuff. Still a big number, but should be with that many products.

 

[JonnyDough]

[citation][nom]slabbo[/nom]better yet, I wonder if Samsung can just buy AMD for cheap and give Intel a real run for it's money.[/citation]

I'd hate to see another American company belong to Asia.

 

[house70]

[citation][nom]ericburnby[/nom]Clear that you're a whiny little troll. Basically calling someone stupid and then complaining when someone does the same to you?And calling people "fAnatics" with the second letter capitalized like all the 12 year olds do with their favorite memes?[/citation]
Holly. That chip on your shoulder is the size of a truck.
Qui s'excuse s'accuse.

Q.E.D.

 

[Guest]

"Smart move from Samsung. Never put all your eggs in one basket."

Is that kinda like "Don't buy everything from NewEgg. Shop around. Sometimes there is better deals elsewhere."

I kid, but seriously I didn't know Apple was such a big customer for Samsung. Hearing that, I'm surprised at some of the tactics that Samsung took with their smartphones and tablets. I'm a bit of a Samsung fan, but I think they had this coming.

 

[somebodyspecial]

Samsung will not be scrambling to find other companies. Nvidia makes GPU's that are 3x the size of most socs. Combine Tegra4 (5?) with Nvidia Kepler's and you have a crapload of silicon space taken up alone with one company added (test chips popped out in may for project denver if memory serves). Wisely samsung didn't turn away NV. Production of qualcom or AMD stuff would easily make up the rest (AMD makes huge chips compared to socs also). Apple is only paying ~8.8bil. NV sells 4Bil worth of crap and looking to go up this year with Tegra4 finally having a modem to go in a phone. Supercomputers are also catching on more with gpus which should further shove NV's need for silicon. NV alone could require ~3b+ if the moved everything to Apple (arguably a much better supplier than tsmc who is late with everything and crappy yields on everything new also). This will continue to grow and is just ONE customer. Now that apple will fight for TSMC space, qcom wisely heading to samsung also. Add a little AMD gpu space and the 8.8B is already ate up. Samsung will have no problem getting Apple's space used.

Nuff said.