Comments on: Apple’s New Samsung Deal Could Keep Competitor Prices High http://gigaom.com/2011/02/14/apples-new-samsung-deal-could-keep-competitor-prices-high/ Sat, 25 May 2013 19:14:51 +0000 hourly 1 http://wordpress.com/ By: timbucktoothed http://gigaom.com/2011/02/14/apples-new-samsung-deal-could-keep-competitor-prices-high/#comment-597992 Mon, 21 Feb 2011 09:13:11 +0000 http://gigaom.com/?p=297610#comment-597992 It makes perfect sense for both companies to help each other. There is no doubt that Samsung would make more money in short term supplying the parts to Apple. It’s important that Samsung get big orders because they fab and they spent billions on their fab plants. Samsung has this huge revenue but poor return on equity because well..that’s what they do. Most importantly, Samsung make best components. Samsung memory units and mobile displays are so ahead of the game in that if Apple don’t use them, their products would be bigger and power hungry because memory unit is too big and display dull while soaking a ton of amps. At the end, Samsung would reviest and make better components. And Apple keep printing money. By the way, buy EWY which is Korean ETF includes investments in Samsung Elec, Hyundai Auto and Posco steels.

]]> By: Massimo Allen http://gigaom.com/2011/02/14/apples-new-samsung-deal-could-keep-competitor-prices-high/#comment-592825 Mon, 14 Feb 2011 20:21:06 +0000 http://gigaom.com/?p=297610#comment-592825 Why is this a big deal, in the first place Comparing Galaxy Tablet with the Ipad is really comparing Apples and Oranges and to get the Galaxy you have to deal with the phone companies at a similar price point to Ipad! Secondly Apple will always be in a similar position with the suppliers, it is only the matter of time when the supplier will be tempted to make their own version of what ever it is they are providing components for. Last but the least the Business is Business, long live “Competition”, it is good for everyone including the manufacturer as it keeps the technology wheel turning.

]]> By: Laughing_Boy48 http://gigaom.com/2011/02/14/apples-new-samsung-deal-could-keep-competitor-prices-high/#comment-592745 Mon, 14 Feb 2011 19:06:24 +0000 http://gigaom.com/?p=297610#comment-592745 Good for Apple. These rival companies keep swearing that they can undercut Apple prices by hundreds of dollars per device. I’d say it would almost be impossible for them to do such a thing unless they cut the quality considerably. Apple is one of the few companies that has enough reserve cash to buy components in huge quantities in advance to ensure the availability of necessary components for tens of millions of devices. If I were a major component manufacturer I wouldn’t even want to deal with smaller companies unless they were willing to pay 100% up front. If their products don’t sell, I wouldn’t want to be stuck with not getting paid.

Samsung could probably make more easy money by just supplying parts to Apple instead of building its own competitor products. They could put their R&D at work on other things. The only drawback would be if Apple suddenly decided to switch component vendors, then it might be a problem. Of course, Samsung could just sell its components to other companies, although not in the same volume as Apple requires.

]]> By: SA APPLE http://gigaom.com/2011/02/14/apples-new-samsung-deal-could-keep-competitor-prices-high/#comment-592739 Mon, 14 Feb 2011 18:57:52 +0000 http://gigaom.com/?p=297610#comment-592739 hey guys

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]]> By: Victor http://gigaom.com/2011/02/14/apples-new-samsung-deal-could-keep-competitor-prices-high/#comment-592719 Mon, 14 Feb 2011 18:26:34 +0000 http://gigaom.com/?p=297610#comment-592719 I’m sure Samsung is such a large company that it’s manufacturing division has little to do with its consumer products division.

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