“Samsung is reportedly looking at splitting off its chip fabrication business from the design aspects, to try and gain traction for the division after Apple abandoned it in the iPhone 7, and possible the future, in favor of TSMC,” Mike Wuerthele reports for AppleInsider.
“According to a report from Business Korea, the four-segment Samsung LSI is being examined for a re-organization,” Wuerthele reports. “The ‘system-on-a-chip’ segment, and the design team will combine to form one entity, with the foundry business being spun-off into its own entity.”
Wuerthele reports, “The evaluation allegedly came after Apple migrated all of its business for the A-series processor to TSMC.”
MacDailyNews Take: Better Apple steps down hard on Samsung’s neck way, way late, than never.
Here’s hoping Apple CEO Tim Cook plans to kick some Samsung ass someday, for a change, and is working very hard to alleviate, not maintain, or Jobs forbid, increase, Apple’s dependence on Samsung going forward. If not, perhaps Tim Cook, not to mention Apple shareholders, should “wake up.”
Here’s a question for Apple Inc. shareholders to ask their employee, Mr. Cook (tcook@apple.com):On which planet do companies get paid billions to stamp out parts for competitors’ products and then, once they’re assembled, turn around and repeatedly piss all over them while churning out an unending stream of knockoffs of the very products that they publicly denigrate?
(Obviously, and unfortunately, Mr. Cook thinks that planet is named “Earth.”)
Here’s a shorter question for Apple Inc. shareholders to ask their employee, Mr. Cook:WTF are you doing any business at all with Samsung?
Did Mr. Cook, operations genius, really get Apple so dependent on one company that Apple cannot live without them?
Samsung has been ripping off Apple for nearly half a decade now. How long, exactly, does it take to stop doing business with them? – MacDailyNews Take, April 26, 2012
—
You want to know what’s really unbelievable? That, after half a decade, at least, of Samsung’s slavish copying, Apple continues to do billions of dollars of business with Samsung. Apple, which has enough money to build or bankroll anything they want, like a chip fab, or a touch screen display factory, or anything they could ever need.
“Oh, you copied our iPhone, our iPod touch, our iOS home screen, our icons, and our Mac mini? Here’s another three endless German lawsuits and, oh yeah, by the way, a $10 billion contract for touch screens.”
Something just does not compute here. If you get mugged, do you buy the leather for a new wallet from your mugger while pressing charges? If you’re Tim Cook, you do.
Apple could have – and should have – dropped Samsung like a bad habit years ago. Not one red cent should be going from Apple to Samsung today. It’s a travesty. It’s poor planning. And it’s bad business. The only conclusion we can draw is that Tim Cook, operations genius, boxed Apple in and is now stuck; beholden to a den of thieves. That sort of “decision making” doesn’t bode well for Apple’s future. It really doesn’t.
Here’s the question Walt Mossberg should have asked Cook onstage at D10: “Excuse me, Tim, but WTF are you still doing any business at all with Samsung?”
Wouldn’t you love to hear the answer to that one? Walt could use Keynote to flash all of Samsung’s knockoffs of Apple’s designs on the big screen behind Tim while he sputtered and stammered.
Next shareholders’ meeting or conference call, somebody might want to ask Mr. Cook that one. – MacDailyNews Take, June 1, 2012
I wholeheartedly agree, chefpastry. MDN’s Takes are sometimes rather extreme and ridiculous. As we have seen, it can take years to develop new sources of high-end electronic components, but the results are worth the wait.
MDN: “WTF are you doing any business at all with Samsung?”
The answer, MDN, is that for many years Samsung was the best or only volume source of quality components that Apple needed for its iOS devices. Apple had a choice – deal with Samsung or produce a lesser iPhone design – and Apple chose wisely. Every penny that Apple has spent on Samsung components has paid back many times over, and Apple has used some of those profits to develop alternate suppliers for key components, such as displays, CPUs, etc. The open market is taking care of Samsung’s phones – Apple is pulling in nearly all of the profits – and, now, Apple is also transitioning away from Samsung as a component supplier. Apple is stronger than ever with a bright future, and Samsung is floundering badly.
Who got the last laugh? Tim Cook, the supply chain genius, that’s who. Eat crow, MDN. You are due a hearty helping for your hubris, for certain.
MDN must be full of supply chain geniuses who understand manufacturing of highly complex electronic devices. With all that knowledge, one has to wonder why they work in news and not in manufacturing, where things are really made and capital is really produced.
It’s quite obvious that the guys (I’m assuming they’re guys, as women are usually more level headed than they are) who run MDM have no idea as to what they’re saying. This is nothing new. They make a lot of dumb statements, and run with them. Occasionally, just due to luck, they’re right in some opinion.
But they clearly have no understanding of what’s happening here. Samsung has been a good partner to them in the SoC fab business. There has been no evidence that Samsung has broken any rules in designing their own chips. That is, they’ve not used any Apple technology in their own chips. That’s really very clear.
If Apple has decided to move elsewhere, it isn’t because of that. If Apple feels that they want to take their business elsewhere because of actions done elsewhere in Samsung, that’s fine. If they feel that TSMC has a better process, that’s fine. But it’s not because Samsung has done anything wrong in the chip business. Certainly not “ripping Apple off”.
The schizophrenic nature of many of the MDN Takes® indicates that several people have their hand in creating them. The older Takes were generally more on target with respect to Apple, as well as more contemplative and humorous. SteveJack, in particular, offered witty and insightful commentary. The drivel that often passes for an MDN Take nowadays is a poor descendant of the Takes of old.
MDN, you have harped a lot about Apple’s performance in recent years, but you had best turn a critical eye to your own fiefdom. Rocks…glass houses…MDN.
They do design their own chips. They just don’t manufacture them. And TSMC getting up to speed happened much faster than building their own foundry would have.
My wife has a life-long friend who a few years ago married a really horrible guy. Even though she is every bit as lovely as she previously was, we now rarely see her because we don’t like how her husband behaves. It was initially rather painful, but we now spend our time with other friends.
It’s a bit like that with Samsung. The chip division has been OK for Apple, but it’s other half is an absolute asshole.
As it happens, Apple’s relationship with TSMC has been very constructive and has worked brilliantly for both partners. TSMC know that they are only where they are now because Samsung behaved so dishonourably and Apple felt obliged to look elsewhere, even though there wasn’t a ready to go alternative at that time. TSMC can be in no doubt that if they were to ever abuse their relationship with Apple, Apple would move on again, but I don’t think that their is any danger of that because TSMC has entirely different values to Samsung.
I’m at a loss to work out what Samsung is likely to achieve by splitting off the foundry business. They won’t be getting Apple back. TSMC are delivering great results and the chips they make for Apple are world-beating. Why would Apple turn it’s back on a loyal and rewarding partner like TSMC? The only way that I could see Samsung winning contracts from Apple would be for second string production in order to meet massive demand. Samsung would have to offer very attractive rates to make that worthwhile for Apple, which means that it wouldn’t be a very profitable business. It would be the sort of contract that keeps the plant running, rather than being a catalyst to propel the business forward.
Maybe Samsung believes that by spinning off the foundry business, it will attract new customers, but there’s only one major customer with a really huge problem with Samsung and that’s Apple. I don’t think that other potential customers will feel that a spun-off foundry will make any difference to their purchasing decisions one way or the other.
We can enjoy observing the schadenfreude of Samsung suffering as a direct consequence of it’s own dishonourable actions, but I really can’t see what difference it makes to other customers if their foundry division were split off.
Friendships are far too valuable to allow someone else to get in the way. With respect to your wife’s life-long friend, I suggest that she try to find a way to arrange outings with her friend without the friend’s husband. If the friend’s husband makes it difficult to do that, then try harder. That probably means that the friend needs her friendship and support even more desperately. She may be trapped with that horrible guy and feel like there is no way out.
I think the problem is what MDN is saying is exactly how many of us Apple geeks feel because we are so passionate abut this company
The slavish copying feel as personal as if it had been done to us. I truly boiled over just reading MDN’s take because samsung are the thieves Apple continue to deal with and in the big picture are holding back Apples true domination of the market.
People think because Apple is wining financially then all is good but many of us live by principles and money takes a back seat . Thieves should be hung drawn a quartered not supported.
Yes I know Apple have to keep their options open but really?
With all that money now, Apple should be the ones building that new fab plant for TSMC and doing it the USA, killing many birds at the same time.
It’s time for Tim to do something that makes us feel like its not all about sitting on the fence and trying to be nice to everyone because I feel if Tim wants to keep the moral stance he so champions
its his moral duty to stand up against Samsung wrong doing
Take a side.
If Principles are how you want to be judged so do it!
We are all waiting for Apple to kick Samsung where it hurts.
The legal rout has achieved nothing show some balls Apple!
I feel your pain. I really do. As a loyal Apple supporter I certainly share your outrage. But Cook and Apple cannot throw the corporate badge on the table in defense of principles at the sacrifice of the company.
Apple made the right choice – a more reasoned and measured response that strengthened Apple and its supplier alternatives while also gradually weaning Apple from its dependencies on Samsung. It took years, but revenge is a dish best served cold.
That’s the dumbest MDN take I have seen in a long time. Had other feasible choices been available earlier, Apple would have left earlier.
I wholeheartedly agree, chefpastry. MDN’s Takes are sometimes rather extreme and ridiculous. As we have seen, it can take years to develop new sources of high-end electronic components, but the results are worth the wait.
The answer, MDN, is that for many years Samsung was the best or only volume source of quality components that Apple needed for its iOS devices. Apple had a choice – deal with Samsung or produce a lesser iPhone design – and Apple chose wisely. Every penny that Apple has spent on Samsung components has paid back many times over, and Apple has used some of those profits to develop alternate suppliers for key components, such as displays, CPUs, etc. The open market is taking care of Samsung’s phones – Apple is pulling in nearly all of the profits – and, now, Apple is also transitioning away from Samsung as a component supplier. Apple is stronger than ever with a bright future, and Samsung is floundering badly.
Who got the last laugh? Tim Cook, the supply chain genius, that’s who. Eat crow, MDN. You are due a hearty helping for your hubris, for certain.
MDN must be full of supply chain geniuses who understand manufacturing of highly complex electronic devices. With all that knowledge, one has to wonder why they work in news and not in manufacturing, where things are really made and capital is really produced.
It’s quite obvious that the guys (I’m assuming they’re guys, as women are usually more level headed than they are) who run MDM have no idea as to what they’re saying. This is nothing new. They make a lot of dumb statements, and run with them. Occasionally, just due to luck, they’re right in some opinion.
But they clearly have no understanding of what’s happening here. Samsung has been a good partner to them in the SoC fab business. There has been no evidence that Samsung has broken any rules in designing their own chips. That is, they’ve not used any Apple technology in their own chips. That’s really very clear.
If Apple has decided to move elsewhere, it isn’t because of that. If Apple feels that they want to take their business elsewhere because of actions done elsewhere in Samsung, that’s fine. If they feel that TSMC has a better process, that’s fine. But it’s not because Samsung has done anything wrong in the chip business. Certainly not “ripping Apple off”.
The schizophrenic nature of many of the MDN Takes® indicates that several people have their hand in creating them. The older Takes were generally more on target with respect to Apple, as well as more contemplative and humorous. SteveJack, in particular, offered witty and insightful commentary. The drivel that often passes for an MDN Take nowadays is a poor descendant of the Takes of old.
MDN, you have harped a lot about Apple’s performance in recent years, but you had best turn a critical eye to your own fiefdom. Rocks…glass houses…MDN.
i think mdn is right. on this one.
apple has all the money and more to start its own foundry and design their own chips – what is taking so long ?
samsung behavior has been absolutely egregious.
unforgivably so.
time to wrap them in a cement overcoat and give them the old heave -ho
Start… their… own… foundry…
Well, put in such simple terms, it makes PERFECT sense…
Apple doesn’t want to do anything. Nor did they want to spend the money.
They do design their own chips. They just don’t manufacture them. And TSMC getting up to speed happened much faster than building their own foundry would have.
MDN take…Where’s that damn shark…I need to j….
I saw this on a poster and it seemed appropriate to your post…
My wife has a life-long friend who a few years ago married a really horrible guy. Even though she is every bit as lovely as she previously was, we now rarely see her because we don’t like how her husband behaves. It was initially rather painful, but we now spend our time with other friends.
It’s a bit like that with Samsung. The chip division has been OK for Apple, but it’s other half is an absolute asshole.
As it happens, Apple’s relationship with TSMC has been very constructive and has worked brilliantly for both partners. TSMC know that they are only where they are now because Samsung behaved so dishonourably and Apple felt obliged to look elsewhere, even though there wasn’t a ready to go alternative at that time. TSMC can be in no doubt that if they were to ever abuse their relationship with Apple, Apple would move on again, but I don’t think that their is any danger of that because TSMC has entirely different values to Samsung.
I’m at a loss to work out what Samsung is likely to achieve by splitting off the foundry business. They won’t be getting Apple back. TSMC are delivering great results and the chips they make for Apple are world-beating. Why would Apple turn it’s back on a loyal and rewarding partner like TSMC? The only way that I could see Samsung winning contracts from Apple would be for second string production in order to meet massive demand. Samsung would have to offer very attractive rates to make that worthwhile for Apple, which means that it wouldn’t be a very profitable business. It would be the sort of contract that keeps the plant running, rather than being a catalyst to propel the business forward.
Maybe Samsung believes that by spinning off the foundry business, it will attract new customers, but there’s only one major customer with a really huge problem with Samsung and that’s Apple. I don’t think that other potential customers will feel that a spun-off foundry will make any difference to their purchasing decisions one way or the other.
We can enjoy observing the schadenfreude of Samsung suffering as a direct consequence of it’s own dishonourable actions, but I really can’t see what difference it makes to other customers if their foundry division were split off.
Great post, alanaudio! Clear and cogent.
Friendships are far too valuable to allow someone else to get in the way. With respect to your wife’s life-long friend, I suggest that she try to find a way to arrange outings with her friend without the friend’s husband. If the friend’s husband makes it difficult to do that, then try harder. That probably means that the friend needs her friendship and support even more desperately. She may be trapped with that horrible guy and feel like there is no way out.
I think the problem is what MDN is saying is exactly how many of us Apple geeks feel because we are so passionate abut this company
The slavish copying feel as personal as if it had been done to us. I truly boiled over just reading MDN’s take because samsung are the thieves Apple continue to deal with and in the big picture are holding back Apples true domination of the market.
People think because Apple is wining financially then all is good but many of us live by principles and money takes a back seat . Thieves should be hung drawn a quartered not supported.
Yes I know Apple have to keep their options open but really?
With all that money now, Apple should be the ones building that new fab plant for TSMC and doing it the USA, killing many birds at the same time.
It’s time for Tim to do something that makes us feel like its not all about sitting on the fence and trying to be nice to everyone because I feel if Tim wants to keep the moral stance he so champions
its his moral duty to stand up against Samsung wrong doing
Take a side.
If Principles are how you want to be judged so do it!
We are all waiting for Apple to kick Samsung where it hurts.
The legal rout has achieved nothing show some balls Apple!
I feel your pain. I really do. As a loyal Apple supporter I certainly share your outrage. But Cook and Apple cannot throw the corporate badge on the table in defense of principles at the sacrifice of the company.
Apple made the right choice – a more reasoned and measured response that strengthened Apple and its supplier alternatives while also gradually weaning Apple from its dependencies on Samsung. It took years, but revenge is a dish best served cold.
Best way to get back at Samsung is not to use them to provide anything for your products. Besides they will just catch on fire now anyways.
halo world