Apple is worried Samsung won't make enough chips for the iPhone because the Galaxy S6 is suddenly doing better than expected

[Victorious Secret]

 

 

 

While Samsungs manufacturing arm might see shortages because they are simply getting so much business, I think this article is a tad off the mark with how procurement of chips works, especially when it comes to orders on this scale. 

 

For those who don't know, Samsung manufacturing is entirely separate from Samsung Mobile. They truly don't give a damn who they sell too. Apple and Samsung Mobile likely have proper contracts that account for additional units and promised ones before that. I highly doubt Samsung manufacturing will play favourites, they never have before. 

 

 

Apple is worried that if Samsung's manufacturing unit will prioritize its Galaxy range over its orders.

 

Samsung needs all the good news it can get — its sales after the launch of the older Galaxy S5 models went into decline, so if the S6 range really is taking off — as Kuo says — then Samsung is likely to favor its own phones over those of Apple.

 

Kuo says that Samsung is expected to raise its shipment guidance for both the S6 and S6 Edge for the full year by roughly 40%, to 50-55 million units (up from 35-40 million units.) In the note, Kuo says the main driver is strong demand for the higher-end Galaxy S6 Edge device, which has a curved screen.

 

The success of the Samsung Galaxy S6 range is surprising for two reasons: Both phones are expensive and are up against record-breaking iPhone 6 and 6 Plus sales. And the Galaxy S6's predecessor the Samsung Galaxy S5 missed sales projections by miles in large part because the iPhone 6 blew it out of the water.

 

 

http://www.businessinsider.com/ming-chi-kuo-samsung-galaxy-s6-sales-worrying-apple-2015-4

[Thebman712]

Wait. Apple is letting their arch rivals build their chips.

That is the stupidest thing apple has done

[ShadowCaptain]

Wait. Apple is letting their arch rivals build their chips.

That is the stupidest thing apple has done

 

This has been the case since the first iPhone - its nothing new

 

Samsung Chip manufacturing is completely different to Samsung devices - they have different management and its totally seperate from their phone and tablet department

[Thebman712]

This has been the case since the first iPhone - its nothing new

 

Samsung Chip manufacturing is completely different to Samsung devices - they have different management and its totally seperate from their phone and tablet department

i thought apple made their own chips

Shows how much i care

[ShadowCaptain]

i thought apple made their own chips

Shows how much i care

 

Nope its their design, Apple manufacture it

Apple do not manufacture anything in the iPhone, its normally Samsung chips, Foxconn and they have a contract with Pegatron. The Camera is a sony sensor etc

 

but those parts are exclusive to Apple and using apples designs and instructions - they only take care of the physical fabrication since apple do not own the manufacturing plants

[Sauron]

Imagine the confusion when we'll have an s6 and a 6s competing though.

[ChineseChef]

Imagine the confusion when we'll have an s6 and a 6s competing though.

 

Someone should release a 6s6 version and a s6s version.  just to mess everyone up.

[AlwaysFSX]

If there's a contract for a specific number of chips to be produced then Samsung can't break that or they'll face penalties.

[TheRetiredSlave]

Wait. Apple is letting their arch rivals build their chips.

That is the stupidest thing apple has done

Uhh yeah. Apple doesn't have chipbuilding capabilities..

Intel is the one of the only companies that exclusively builds their own chips. Everybody else buys chips made by Samsung, TSMC, Global Foundries, Hynix, or other chipbuilders.

[ChineseChef]

If there's a contract for a specific number of chips to be produced then Samsung can't break that or they'll face penalties.

 

While this is a "problem", the penalties could potentially be very minor compared to doing better for their own business.  The real reason companies like Samsung don't skimp on their deals with companies like Apple and others for the sake of making their own products better is due to market forces.  If Samsung ever let a contract fail just to boost their own product line, all the other companies they do business with would start to use Samsung's competitors.  The fear would be not knowing if Samsung would cut you off next, so you would use someone else.  This would kill their long term business.  This is why big companies who hate each other can work very well together, free market options and reputations are very very important at those levels.

[Guest]

You may want to change the photo.

 

Every 'photo' of the A9 I can find is the picture in the OP with the 8 shopped to a 9.

[jck1997]

I can't believe apple use Samsung chips ! I thought they made their own, I've always been a android fan anyway

[Simons]

Wait. Apple is letting their arch rivals build their chips.

That is the stupidest thing apple has done

 

They have that for many years, hence why I find it extremely funny when my idiotic Apple fan friends, tells me Samsung is shit.

[Victorious Secret]

They have that for many years, hence why I find it extremely funny when my idiotic Apple fan friends, tells me Samsung is shit.

 

Samsung Mobile and Samsung Manufacturing are two separate companies. 

 

So who is the idiot now? 

 

I could probably put up a post that Apple cured cancer and you children would still shitpost about it. 

[Xsilent(X)]

I can't believe apple use Samsung chips ! I thought they made their own, I've always been a android fan anyway

 

made their own? damn the iphone is a chinees product everything is made in china. thats why you pay that much

[jck1997]

I thought china stuff was cheap which is why the manufacture there? I'm using a Nexus 6 however my next phone will probably be Samsung phone. Depends on the time and what's on the market.

[Simons]

Samsung Mobile and Samsung Manufacturing are two separate companies. 

 

So who is the idiot now? 

 

I could probably put up a post that Apple cured cancer and you children would still shitpost about it. 

 

He referred to Samsung as whole, whos an idiot now? He is one of those fan boys, who does not care how shit his product is, he will find a way to make it look good.

PS - If you do not understand why I call him an idiot, you are undoubtly one.

[Peepnbrick]

If I were Apple, I wouldn't be too worried. Even if they run a little short on chips now, their phones are not in extreme demand.

 

Now if they were to release a new iPhone at the same time as a new Galaxy, then they would have a serious problem. But, the hype of the s6 will have died down by September, so things will be business as usual by then.

[MblaZe7run]

Taiwan Semiconductor Manufacturing Company Limited, or TSMC, makes the A8 (Apple System on a Chip) not Samsung. You may want to change the photo.

Also LG makes the display and Sony makes the camera. Just because they compete in the same market doesn't mean they won't sell to one another.

Samsung also makes them. Both TSMC and Samsung manufacture the chips, however, Samsung manufactures the bulk of them, if memory serves.