Apple to buy $11bn worth of components from 'sworn enemy' Samsung in 2012

Apple to buy bn worth of components from 'sworn enemy' Samsung in 2012

Let's face it: we're all guilty of over-dramatising the mobile industry at times, depicting large corporations as comic superheroes – or villains, depending on your allegiances – locked in mortal combat and determined to do whatever it takes to come out on top.

Take Apple and Samsung, for instance. It's good fun to talk about them as sworn enemies trying to beat each other into submission at every turn. But $11bn of Apple's money says differently.

That's what Apple is expected to be sending Samsung's way this year for Korean-made mobile bits and pieces to stick inside its all-conquering iDevices – primarily processors and Retina Display panels. That's compared to $7.8bn last year.

So says an unnamed Samsung exec tapped up by The Korea Times for some inside info. According to the source, agreements already in place guarantee $9.7bn will change hands in 2012. But if Apple does unveil a smaller iPad variant later this year – as many are expecting – the figure could rise by more than a billion by year end.

“Samsung is the only parts maker in the world ideally positioned to meet all of the critical conditions – better pricing, technolgically enhanced products, on-time delivery and the capability to immediately respond to any emergency situation,” the Samsung insider says.

Some are reporting the comments as unofficial confirmation that the iPad mini is indeed real, though it's hard to say for sure without knowing just how senior the exec being quoted actually is.

Time will tell, but in the meantime we'll go back to thinking of Apple and Samsung as contestants in some kind of corporate Celebrity Death Match. It's just more fun.

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4 comments

JanSt / MOD  Mar. 14, 2012 at 10:06

STOP STOP STOP... rewind: oh, sorry, nothing new - corporations are amoral...

Stelph  Mar. 14, 2012 at 10:26

Ah its such a shame, I read that samsung are the sole provider of the new iPad's screen, they could do Apple some serious damage by refusing to supply the screen and yet they never would as Samsung are making serious money out of the deal I am sure

So we just have to put up with both companies acting like spoilt brats I guess

jmarcelino  Mar. 14, 2012 at 11:08

I think the article missed this bit:

"Apple CEO Tim Cook agreed with Samsung Electronics Chief Operating Officer (COO) Lee Jay-yong to use the Korean firm’s components until the end of 2014"

socialjeebus  Mar. 14, 2012 at 11:56

Ah its such a shame, I read that samsung are the sole provider of the new iPad's screen, they could do Apple some serious damage by refusing to supply the screen and yet they never would as Samsung are making serious money out of the deal I am sure

So we just have to put up with both companies acting like spoilt brats I guess


The reality is as you say, they make too much money. Another issue is that whilst Samsung is a conglomerate, the various divisions are also separate entities (Samsung part-own Tesco's Homeplus stores in Korea, whilst Renault produces Samsung-branded cars).

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