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  • Cutting Ties with Samsung? Not So Easy, Apple


    It's been a recurrent headline throughout 2012. The bitter rivalry between Apple and Samsung has made it increasingly difficult - if not impossible - for the two tech giants to continue working so closely with one another. For months, speculation has mounted that Apple and Samsung are mutually excited about the prospect of cutting most - if not all - ties.

    In particular, Apple is "in a hurry" to end its reliance on Samsung for the manufacturing of its mobile processors. But it's going to be immensely difficult to do anything "in a hurry" given how complex and convoluted the process of transitioning away from Samsung could prove to be for a company the size of Apple.

    RBC Capital's Amit Daryanani said Friday that Apple's list of "go-to providers" isn't necessarily stellar in the absence of Samsung.

    It's not going to be easy to switch suppliers, he writes. Apple did most of the heavy lifting on the A6 chips in the current generation of iPhones and iPads -- designing the processors in-house and paying Samsung to manufacture them.
    Daryanani describes the process of Apple moving its business to a different foundry as a venture that would require "a complete redo" lasting 12 to 18 months, "cost a fortune," and - worst of all - not produce "marketable chips" before 2014 at the earliest.

    So who are Apple's potential partners in place of Samsung? Intel, TSMC, GlobalFoundries, and Go Vertical. But according to the rumor mill, it sounds like Intel is the most likely candidate. Other sources at RBC have been cited by Fortune indicating that "Intel already in talks with Apple to build iPhone processors."

    Source: Fortune
    This article was originally published in forum thread: Cutting Ties with Samsung? Not So Easy, Apple started by Michael Essany View original post
    Comments 10 Comments
    1. bigboyz's Avatar
      bigboyz -
      Well, Apple has a ca$h hoard so $$ is not an issue. Im wondering of the affect if any on products produced from here on out. Guess time will tell which way the ball bounces.
    1. Alluziion's Avatar
      Alluziion -
      Quote Originally Posted by bigboyz View Post
      Well, Apple has a ca$h hoard so $$ is not an issue. Im wondering of the affect if any on products produced from here on out. Guess time will tell which way the ball bounces.
      They may have a great deal of cash but they also have a great deal of greedy shareholders who all want a piece of the cake.
    1. scroogelives's Avatar
      scroogelives -
      This is why apple has been buying up company's so they can move away from Samsung may not be today or tomorrow but they will move away! And at the same time Samsung will need to find new customers to make up for the money apple takes with them! Won't likely be a situation that really suits both sides but since they can't play nicely together its most likely the best option!
    1. Mrteacup's Avatar
      Mrteacup -
      Its only been a couple years since the lawsuits started. (at least the media centered lawsuits, because millions of millions of tech lawsuits happen and dont get 1/1000 of the attention apple and samsung do)Apple can't severe ties with them until the contract is up and another supplier can confidently and efficiently produce for apple.
    1. Silverado1987's Avatar
      Silverado1987 -
      Quote Originally Posted by scroogelives View Post
      This is why apple has been buying up company's so they can move away from Samsung may not be today or tomorrow but they will move away! And at the same time Samsung will need to find new customers to make up for the money apple takes with them! Won't likely be a situation that really suits both sides but since they can't play nicely together its most likely the best option!
      +1 true that.
    1. Lohand's Avatar
      Lohand -
      "I Wish I Knew How to Quit You!" - Tough tech cowboy on the outside, soft and Apple fruity on the inside.
      Darn right it wont be so easy. Samsung will own those Apple seeds for at least 4 more years "Gangnam Style"...

      PS Yea, keep making those safe reliable and boring Toyota Camry iPhones Apple while Samsung starts to move next gen flexible OLED devices next year...
    1. SepticTank's Avatar
      SepticTank -
      Samsung smart phones > Apple smart phones...
    1. Alluziion's Avatar
      Alluziion -
      Quote Originally Posted by SepticTank View Post
      Samsung smart phones > Apple smart phones...
      That post has no relation to the subject; topic is not about who has the better phone and if you do think that then you're on the wrong forum.
    1. SepticTank's Avatar
      SepticTank -
      Quote Originally Posted by Alluziion View Post
      That post has no relation to the subject; topic is not about who has the better phone and if you do think that then you're on the wrong forum.
      Get over yourself. Thank you....
    1. Colwood's Avatar
      Colwood -
      Quote Originally Posted by SepticTank View Post
      Get over yourself. Thank you....
      like he said your on the wrong forum