Apple and Samsung will want to maintain their component deal

Samsung and Apple need one another

Despite the on-going patent battles between the two, Apple and Samsung’s co-dependent partnership over components is still a priority

Not true. A break would mean short term losses for Samsung until it's devices fill the void left by Apple. Apple on the other hand will need to find a new fabrication partner and would set back the release of any new devices by 3 to 4 years. However I am sure there are ironclad contracts between the 2 to ensure that Samsung cannot do this. Why else would Apple be so arrogant.

Jeremy Proome said:

Samsung and Apple need one another

Despite the on-going patent battles between the two, Apple and Samsung’s co-dependent partnership over components is still a priority

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And that, my friend, is the state of current technology.

/shakes head in bewilderment.

HBee said:

Not true. A break would mean short term losses for Samsung until it's devices fill the void left by Apple. Apple on the other hand will need to find a new fabrication partner and would set back the release of any new devices by 3 to 4 years. However I am sure there are ironclad contracts between the 2 to ensure that Samsung cannot do this. Why else would Apple be so arrogant.

Click to expand...

Well you are right and wrong
a) Yes Apple and Samsung have long term contracts that Samsung couldn't escape. They also wouldnt want to. What Apple does is pay well in advance to lock in the components at a good price. When there was a component shortage (think it was memory or screens) Samsung had to supply Apple before their own telephone arm

To give you an idea Apples often spends more than a Billions in advance to lock in components well in advance
These contracts are very profitable for Samsung. They would not want to lose this contract

b) So Apple always have a long lead time to negotiate these things. They couild switch component suppliers but they probably wouldnt want to because change equals risk

Havig said that if Samsung jacked up priices they would move

c) So Samsung wouldnt really fill any hole because Apple would get their components.
Samsung would lose their component profits.
It would mess Apple around though. Transition costs money and effort

BUT they both need eachother.
And behind the scenes the Execs can separate the battles.
Component Division no issue. Phone Division hassles

also the "phone division hassles" are likely a result of internal competition within Samsung - the guys in charge of the phone division have a specific mandate and agenda

HBee said:

Not true. A break would mean short term losses for Samsung until it's devices fill the void left by Apple. Apple on the other hand will need to find a new fabrication partner and would set back the release of any new devices by 3 to 4 years. However I am sure there are ironclad contracts between the 2 to ensure that Samsung cannot do this. Why else would Apple be so arrogant.

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Amazingly you made that sound as though Apple needs Samsung's fabs more than Samsung needs Apple's business. But alright since it's just speculation in any case, here's a simple enough point: Everyone sues everyone in computers. Nokia already sued Apple for 600mil over IP and won, and nobody calls them arrogant. Microsoft goes around suing any app developer who apparently infringes on one of their arbitrary UI patents to the point that they make a solid standalone business out of Android royalties alone. And Oracle sued Google (and lost). Somehow Apple is held to a higher standard than them I guess because by now they are the leading incumbents or something like that. It's just business and good businessmen learn to compartmentalize and act in their own best interests rather than their wounded feelings.