4 ms·

Samsung knows better then to breach a contract with someone like Apple. Especially when they are building $3 billion factory to support it. Also I am sure the d

Samsung knows better then to breach a contract with someone like Apple. Especially when they are building $3 billion factory to support it. Also I am sure the division that designs phones is separate, contractually, from the division that designs/manufactures chips.

nonane 16y ago
That makes sense. It all roses for Samsung - they have their hands in both pots.
- malnourish 16y ago
  As many companies do, those with brand identification and a long history of success tend to ride more than one horse, e.g. Google, Sony, etc
- nonane 16y ago
  Some facts using Samasung's Q42010 earnings release: http://www.samsung.com/us/aboutsamsung/ir/ireventpresentations/earningsrelease/downloads/2010/20110128_conference_eng_2.pdf http://www.samsung.com/us/aboutsamsung/ir/ireventpresentatio... 1) In terms of their revenues, their telecom business is now bigger than their semiconductor business, though from a profit perspective the semiconductor business is about 30% bigger. 2) Year-on-Year growth is slightly higher in the telecom division. 3) Telecom division expects higher than market growth rate mostly fueled by smartphone sets. 4) Telecom has mainly seen very strong growth in their 'strategic' handset models - 40% growth over previous years. Their strategic models are all Android based (5 models in total). Their telecom division is relying on newer revs of these models to drive higher than market returns in 2011. My (very simplistic) reading of this: Apple needs to diversify away from Samsung and create more options (duh). If the Galaxy series turns out to do better than expected next year, it gives Samsung more leverage to raise prices / cut production quotas on Apple's chips.
  - jmtulloss 16y ago
    Every smartphone company wants to diversify away from Samsung, it's never in your interest to be tied to a single supplier. The big problem with this: Samsung is the best. By far. Until their competitors catch up, they're the only reliable game in town.

nonane 16y ago

That makes sense. It all roses for Samsung - they have their hands in both pots.

malnourish 16y ago
As many companies do, those with brand identification and a long history of success tend to ride more than one horse, e.g. Google, Sony, etc
nonane 16y ago
Some facts using Samasung's Q42010 earnings release: http://www.samsung.com/us/aboutsamsung/ir/ireventpresentations/earningsrelease/downloads/2010/20110128_conference_eng_2.pdf http://www.samsung.com/us/aboutsamsung/ir/ireventpresentatio... 1) In terms of their revenues, their telecom business is now bigger than their semiconductor business, though from a profit perspective the semiconductor business is about 30% bigger. 2) Year-on-Year growth is slightly higher in the telecom division. 3) Telecom division expects higher than market growth rate mostly fueled by smartphone sets. 4) Telecom has mainly seen very strong growth in their 'strategic' handset models - 40% growth over previous years. Their strategic models are all Android based (5 models in total). Their telecom division is relying on newer revs of these models to drive higher than market returns in 2011. My (very simplistic) reading of this: Apple needs to diversify away from Samsung and create more options (duh). If the Galaxy series turns out to do better than expected next year, it gives Samsung more leverage to raise prices / cut production quotas on Apple's chips.
- jmtulloss 16y ago
  Every smartphone company wants to diversify away from Samsung, it's never in your interest to be tied to a single supplier. The big problem with this: Samsung is the best. By far. Until their competitors catch up, they're the only reliable game in town.