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Putting aside the fact that the fab takes a healthy chunk of profit, the question is one of capacity. A fab is under no obligation to provide Apple with chips,
by Osmium 14y ago
Putting aside the fact that the fab takes a healthy chunk of profit, the question is one of capacity. A fab is under no obligation to provide Apple with chips, and given a choice between one big contract with Apple or diversifying and having a dozen smaller contracts with other manufacturers and I know what I'd pick.
The problem then, for Apple, is that they can't just turn around and get their chips made somewhere else. There just aren't enough fabs in the world to produce them at the quantity Apple needs, especially using latest-generation processes.
- silvestrov 14y agoMac volume is way lower than iPhone volume, so the additional risk is miniscule. It's almost like the Mac is just a big 'hobby' for Apple.
- protomyth 14y agoApple could pay for part of a fab for someone else. They have done this for other components (e.g. displays).
- Someone 14y agoWhich one would you pick? The one with AAA rating that pays half up front that pays well for state of the art stuff, or the dozen smaller ones that seem more concerned about your pricing than about the quality of your products? Yes, I probably am exaggerating, but I do not think the choice is as clearcut as you indicate. There is risk in taking on a customer that is larger than you, but there also is a lot of potential profit there.