Comments on: Apple and TSMC – Forgotten reality

By: windsorr

windsorr — Tue, 16 Oct 2012 07:16:37 +0000

Agreed. second source makes sence but when you take a 10% margin hit as a result, its something you would lthink about very carefully!

By: windsorr

windsorr — Tue, 16 Oct 2012 07:14:55 +0000

Hi Adam…Its the other way round. Samsung would love to keep Apple on board. Its a question whethr Apple leaves or not. Apple spends a VAST ammounts with Samsung. Around 8% of its COGS or so is the latest estimste which equates to a staggering $9bn in 2012!!!!!

By: Adam Nealis

Adam Nealis — Mon, 15 Oct 2012 15:49:52 +0000

I agree with the comment on Samsung keeping its businesses separate.
It’s only businesslike/ rational.
I don’t know how much revenue goes to Samsung from Apple’s chip orders, but it would be cutting off their nose to spite their face if they were to drop Apple.

By: Tim Nash

Tim Nash — Mon, 15 Oct 2012 09:44:34 +0000

– Apple will use about 250 million ARM chips this FY for iPhone, iPad, iPod
– it therefore makes sense to second source with TSMC (or another major foundry)
– given TSMC capacity constraints, Apple may use its cash to finance the new line(s)
– as TSMC wouldn’t have to risk capital and would have guaranteed sales it could give Apple a better margin than its other customers