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back to article Samsung and Apple finally divorcing after years of court battles

Apple has signed a deal with a new chip manufacturer which could see its troubled relationship with Samsung finally brought to an end. Cupertino has reportedly inked an agreement with the Taiwan Semiconductor Manufacturing Company (TSMC) which will eventually see it take over full production of mobile processors for all iOS …

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Since I doubt neither TSMC nor Apple will confirm this, I think I'll wait until someone pulls an Apple product apart and xrays the CPU before calling this a done deal.

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Anonymous Coward

No mention of who makes the screens then?

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Silver badge
FAIL

How sure is this?

"Reportedly" 3 times in the first 3 paragraphs?

Same story that's been recycling for 3 years now?

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Anonymous Coward

So when consumers start buying non-Samsung phones and their phone competitors are probably going to avoid buying components from Samsung - then Apple stop buying their components - that's a lot to lose for Samsung.

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Anonymous Coward

Samsung is a danger

Samsung make a far wider range of Electrical and Tech goods than Apple will ever do.

They are (IMHO) are getting close to being a virtual monopoly in some markets.

I've stopped buying Samsung kit wherever possible.

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Anonymous Coward

Re: Samsung is a danger

"They are (IMHO) are getting close to being a virtual monopoly in some markets."

You do know what monopoly means, right.....?

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Anonymous Coward

Re: Samsung is a danger

They make a lot of 'stuff' but all at low margins apart from the phone / mobile business - when people start buying non-Samsung Android phones, other phone makers may be wary of using samsung as a supplier (not wanting to repeat potential copying etc.) and they lose Apple as a major customer things could dry up.

Apple on the other hand can pick and choose suppliers and have a much more loyal (some might say locked in) customer base. You buy a Samsung you are effectively a Google customer - no reason to buy Samsung next time.

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Anonymous Coward

Pulling the plug might mean just that.

When Apple decided to pull the plug on Samsung it probably put it's lights out too. TSMC are a chip manufacturer and probably it's R&D is not as well developed as Samsung. As chips develop can TSMC's research department keep up with the pace. Samsung is outselling Apple probably due to Android being geared on open source and open source leads to development. No open source = no easy route to development. In a vastly moving day and age people want to control everything thing in the world with their smart-phone and Apples stubbornness to connect to anything other than an Apple product might be it's downfall. Oh! that and and the Apple tax of course. Greed will plant the seed but cash won't make it grow....needs water too.

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The risk is not with Apple

By going to another supplier, especially a smaller one, Apple have more exclusivity and may well be able to demand more and may be more innovative. The risk is not with Apple, it's with the company that makes the components for them, especially if all eggs are in one basket.

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Who is pulling the plug on who?

I suspect Apple needs Samsung more than Samsung need Apple and if Samsung decided not to renew its contract with said fruity firm, then they'd be left high and dry without anyone to fab their chips for them.

Better for Apple to jump ship now and find a new partner than wait until Samsung to decide enough is enough and pull the plug on their relationship with Apple.

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Anonymous Coward

Re: Pulling the plug might mean just that.

What 'Apple tax' - I recon the TCO (which is the important issue) is lower for Apple than Samsung. Spend the same today on an iPhone 5 and a Galaxy S4 - the iPhone will probably still be going in 3-4 years+ (if the many 3GS handsets I see are proof of that) whereas suspect most S4s will be replaced and near worthless after 18-24 months.

See how many iPhones are for sale on eBay - 50%+ of their original price after about 2 years means the real cost of ownership may be significantly lower. Also consider support - you break your iPhone or it breaks out of warranty - pretty sure Apple replace it for about £130 - you break your S4 and unless you have insurance that could be a £400-500 replacement.

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Holmes

Re: The risk is not with Apple

Apple design/spec their own chips. Any competent chip fab. with the available capacity can make them.

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Re: Pulling the plug might mean just that.

TSMC are *just* a chip manufacturer. Yup, Apple already have in-house chip design teams (see purchases of PA Semi and Intrinsity in the last few years) and are no longer reliant on Samsung for any chip design. By the same token, they are also wise to shift production away so that Samsung can't see and are therefore not able to steal any of their chip design innovations.

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Silver badge

Re: Pulling the plug might mean just that.

I don't see any 3GS phones, I do see older other kinds of phones.

I don't get why second hand sale is an indicator - I wish I thought of these arguments back in the last days of the Amiga, "A £2000 Amiga 4000 is a much better buy, as you can sell it for almost as much". I don't know if your second hand price comparisons are true, but higher second hand prices are usually an indicator of less progression and advancement in newer models, as there's nothing new to drive the price down of older models.

Anyhow, if you're someone who needs to care enough about making money back on second hand price, go buy a much cheaper (but still better than iphone 5) Nexus 4.

"pretty sure Apple replace it for about £130 - you break your S4 and unless you have insurance that could be a £400-500 replacement."

No, they don't, unless you have their insurance too.

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Anonymous Coward

Re: Pulling the plug might mean just that.

" they are also wise to shift production away so that Samsung can't see and are therefore not able to steal any of their chip design innovations"

Oh dear. What a truly fact devoid posting.

What "chip design innovations" would you be referring to?

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Silver badge

Re: The risk is not with Apple

Apple has risk too. If the company can't make its components, or its R&D staff aren't up to the challenge for new components Apple don't have a steady supply of chips. That's been part of Apple's problem with Samsung: it's one of the few outfits who can produce chips in the quality and quantity Apple need. If people see too much of an issue with being able to get a new iPhone, that might be cause enough to jump ship, which could start an unending death spiral. Not likely, but still a risk.

I concur that for a small chip outfit, their risk is more likely and more catastrophic.

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Re: Pulling the plug might mean just that.

So what's this in my pocket? Oh, it's a 3GS. Oh, and it's working perfectly.

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Anonymous Coward

Re: Pulling the plug might mean just that.

>Yup, Apple already have in-house chip design teams (see purchases of PA Semi and Intrinsity in the last few years) and are no longer reliant on Samsung for any chip design

PA Semi's expertise was elsewhere - the custom core design at Apple is headed up by Jim Mergard - Apple hired him from Samsung late last year - Samsung had the option to block his appointment but did not take it.

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The Patent Tit-for-Tat Circus

The longer it goes on the more Apple (who started it) seems like a spoilt brat having a trantrum that everyone ignores.

Props to Samsung for staying with it to show up Apple for what they really are.

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Anonymous Coward

Re: The Patent Tit-for-Tat Circus

Samsung are just as bad and remember many would say they threw the first punch by starting all this (i.e. which resulted in litigation). Guess Samsung never sue?

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Anonymous Coward

Re: The Patent Tit-for-Tat Circus

"staying with it"

Meaning what exactly?

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Anonymous Coward

Re: The Patent Tit-for-Tat Circus

For the record, Nokia started it...

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