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It's probably that way because Apple is buying so much stuff from Samsung that losing the contract would be a major hit on their bottom line. So Samsung can't
by cube13 14y ago
It's probably that way because Apple is buying so much stuff from Samsung that losing the contract would be a major hit on their bottom line.
So Samsung can't really afford to lose Apple's business. Apple, on the other hand, does have the freedom to switch suppliers.
- jarek 14y ago> Apple, on the other hand, does have the freedom to switch suppliers. Though it might be a hollow freedom if no one else other than Samsung can give them the volumes and delivery dates they need. Mutually abusive co-dependent relationship, oh boy.
- msbarnett 14y agoApple has enough cash on hand to literally pay upfront for TSMC or GlobalFoundries to expand enough to handle Apple's needs. (Apple tends to pay others to set up this kind of capacity rather than build their own because they don't like being stuck with the long-term upkeep on these uber-expensive facilities). It wouldn't be cheap and it would hurt like hell while they got set up, but it would equally cripple Samsung as their own component costs exploded from all of the suddenly idle capacity in their own foundries. It's enough of a nuclear war scenario that I can't imagine either side is eager to pursue it.