This week's article read:
http://news.msn.com/science-technology/stalemate-between-apple-samsung-in-smartphone-wars
So I was received this article through my Google Alert this week. While reading it, I was a bit shocked. Not because Apple is suing Samsung and vice versa (I mean come on, that's pretty old news), but by the fact that Samsung actually manufactures a lot of parts of Apple's iPhone, iPads, iWhatevers. I find it interesting that Apple chose to pick up a fight with the guys who make parts for their phones (I mean...their phones wouldn't work without Samsung). And I'm pretty surprised that Samsung hasn't dropped them from their clients (okay, I guess having Apple as one of your clients is a pretty huge money maker, but wouldn't it be a giant f***k you to apple?). It's interesting to see how to companies hate each other, sue each other, want the other company to not succeed, and yet still work together to produce products.
A bit silly I think. Thoughts?
It is kind of silly. I think from Apple's point of view (and Samsung's) is that Samsung is actually getting a hefty amount of money from the supplies that Apple uses to make their products. Think of this as a another revenue source. However, I think that Samsung should yank the supply ocntract because then they will control the smartphone market.
ReplyDeleteGood points. I agree it is a little silly that these enormous corporations have these extensive legal wars with each other. Also, it's interesting that Samsung's role as Apple's supplier for the smartphone business gave them key insights when they decided to launch their own product.
ReplyDeleteIt's definitely an interesting dynamic. There's also been news that their supplier agreements for a variety of components are starting to change. For example, Samsung recently stopped supplying Apple with display components for iPads and MacBooks. I'm sure other components will be affected in the future too. Here's the article I found on it - http://techcrunch.com/2012/10/22/samsung-to-cut-the-cord-end-lcd-panel-supply-relationship-with-apple/
ReplyDeleteI think their relationship is definietly a bit shaky like i said in my blog. But i think Samsung has an advantage on this since they know exactly what parts are going into their products and to have that knowledge i think gives them an advantage cause they can always do better than what they are selling them. But i do believe they stopped selling a lot of products to Apple. This is going to be a really interesting battle between these two companies.
ReplyDeleteThe role of history in strategic games tends to iron out as we deal with large entities. Say it's a 1-to-1 trade, and you betrayed me. I might not be so quick to strike a deal, even if it may be beneficial to me. In the business word, this sense of fairness and justice diminishes and evens outs as corporations are more likely to behave in rational and calculated steps. This may help understand why Apple and Samsung still have forms of partnerships even if they "Hate" each other.
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