Samsung has to raise that $1 billion that it owes Apple somehow.
In the end though, Apple will still insist that the carriers sell the iPhone for the same price as high-end Android devices despite the inevitable increase in wholesale price, and everybody will have to subsidize iPhone users even more by paying higher monthly service rates.
On top of that, Apple is going to pay Samsung damage fee for their misleading appoligy on their website.
@Bass: Yes, surprising on several levels. The most unexpected fact was that Apple couldn't find another supplier for the chip. Given the prospected quantities, it's hard to believe that nobody would be interested; either a cartel, or Samsung arm wrestling everybody else seems a lot more likely.
Which is just food for further lawsuits...
@Blue Ink: Cartel? Apple, itself, is a cartel. They have so many component suppliers by the short hairs, that they can dictate what percentage of a component manufacturer's output can go to Apple's competitors
So all these "I won't sue you if you don't sue me" agreements are illegal? To me it feels like a cartel.
I believe a cartel would require something like "let's cross-license our patents then use them to kick everybody else out of the market so we can charge ridiculous prices". Good luck proving that, though; it's difficult to distinguish between a company protecting its IP from one consipring with others to distort competition.
Not so sure about this one. Apple and Samsung signed a deal (so many millions of chips at a certain price) until 2014. If it is true then it's because Apple is no longer entitled to volume discounts because they've cut the supply orders.
Since Apple's chip design division has scored a major hit with the A6 line, they could be thinking now was is a good time to seek new partners.
@Ray7:Apple can't find a new AP provider, so instead they seek other memory chips provider...
From my previous experience when working with computer shop, Samsung is one of the better brand in terms of memory module stability and compatibility (with motherboards). Sometimes brands like Kingston will produce memory modules that made with Samsung chips when their production line schedule is tight.
I think Apple will have a hard time finding memory chips provider that'll provide better C/P value than Samsung... Or let's see whether iPhones produced a few month later will have a higher frequency of "hang".
Samsung introduces 10nm process, leaving Apple few options for now, if it wants to have the latest technology.
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