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  • Trouble at Samsung as Apple Reportedly Considers Pullout


    Consumer electronics giant Samsung has hit a rough patch. Today alone, shares of Samsung Electronics fell 6% percent - a move that effectively swiped away $10 billion from the company's mighty market value.

    The sell-off was sparked by speculation that Apple is planning to drastically reduce its working relationship with Samsung. The iDevice maker is said to have begun placing chip orders with Samsung rival Elpida instead.

    Following compelling reports by the likes of Reuters and the Wall Street Journal, which indicated that Apple has secured the services of several suppliers (none of which is Samsung) to provide new iPhone screens for the next gen-device, many investors went into a panic and dumped the stock.

    "It looks like Apple doesn't want to see Samsung and hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running," Choi Do-yeon, an analyst at LIG Investment & Securities, tells Reuters.

    For now, not surprisingly, neither Samsung nor Apple will formally comment on the matter.

    Source: Reuters
    This article was originally published in forum thread: Trouble at Samsung as Apple Reportedly Considers Pullout started by Michael Essany View original post
    Comments 9 Comments
    1. scroogelives's Avatar
      scroogelives -
      I wouldn't be surprised to see apple buy one or two of the other company's to reduce its over heads! And say a big **** you to Samsung
    1. GmAz's Avatar
      GmAz -
      I'm not worried about Samsung. If they no longer have to product Apple's components, they are free to product for so many other companies. Apple takes up a large portion of their sales and they have issues producing stuff for their own equipment. Samsung is one of the highest quality producers. Let apple go to some 2nd rate company.
    1. Beastly L92's Avatar
      Beastly L92 -
      Quote Originally Posted by GmAz View Post
      I'm not worried about Samsung. If they no longer have to product Apple's components, they are free to product for so many other companies. Apple takes up a large portion of their sales and they have issues producing stuff for their own equipment. Samsung is one of the highest quality producers. Let apple go to some 2nd rate company.
      But, Apple has the cash reserves and the market share to put Sammy's lights out. What happens when Apple dumps a few billion in Elpida and then hands them a 150 million unit per year contract? Apple will buy a glass factory just to build their stores. I guarantee when the dust settles, Apple won't be settling for anything. My guess is when it's all said and done, Apple will have invested enough in whoever builds their components to optimize production in Apple's favor. Apple has done it before. They aren't scared to invest heavily or buy out companies to create state-of-the-art facilities. Bottom line? Samsung has WAY more to lose here than Apple.
    1. jbardi's Avatar
      jbardi -
      Quote Originally Posted by GmAz View Post
      I'm not worried about Samsung. If they no longer have to product Apple's components, they are free to product for so many other companies. Apple takes up a large portion of their sales and they have issues producing stuff for their own equipment. Samsung is one of the highest quality producers. Let apple go to some 2nd rate company.
      LOL are you being serious? If you are, you need to do more research ROFL... And take your lack of understand and fan boyism elsewhere you dult!
    1. adam9ka's Avatar
      adam9ka -
      Quote Originally Posted by Beastly L92 View Post
      But, Apple has the cash reserves and the market share to put Sammy's lights out. What happens when Apple dumps a few billion in Elpida and then hands them a 150 million unit per year contract? Apple will buy a glass factory just to build their stores. I guarantee when the dust settles, Apple won't be settling for anything. My guess is when it's all said and done, Apple will have invested enough in whoever builds their components to optimize production in Apple's favor. Apple has done it before. They aren't scared to invest heavily or buy out companies to create state-of-the-art facilities. Bottom line? Samsung has WAY more to lose here than Apple.
      Apples genius extends well beyond their foresight into what the consumer will want in the future and their designs. Their supply change approach is brilliant. As you said they have the cash to invest in companies or buy them outright and then help them improve their manufacturing to reduce cost. Your starting to see this strategy more and more with companies who do have cash such as Delta (I think it was them) buying a refinery to control their fuel destiny. Samsung, and their investors do have a lot to fear. Not only the business but Apple helping another factory produce better parts for less cost!
    1. firetwuck's Avatar
      firetwuck -
      Quote Originally Posted by GmAz View Post
      I'm not worried about Samsung. If they no longer have to product Apple's components, they are free to product for so many other companies. Apple takes up a large portion of their sales and they have issues producing stuff for their own equipment. Samsung is one of the highest quality producers. Let apple go to some 2nd rate company.
      If it had any potential customers, they wouldn't be potential customers. They cannot replace that revenue easily.
    1. Painkiller006's Avatar
      Painkiller006 -
      Many people forget Samsung makes a lot of different things. You have chips, displays even ships...even if they loose apple, Samsung will still be doing fine.
    1. Kaospassageraren's Avatar
      Kaospassageraren -
      They Will be doing fine but they Will Loose alot if Apple make the change..
    1. vicx's Avatar
      vicx -
      Samsung it's a larger Co then apple , apple must invest a lot of money to creat their own factory and also it's still a myth that they will do cheaper! So take care icostumer!ty