Apple’s Severing All Manufacturing Ties With Samsung, It’s Now Hate All The Way Down

Apple’s Severing All Manufacturing Ties With Samsung, It’s Now Hate All The Way Down

You mess with the bull, you’re going to get the horns. Google discovered this when they launched Android, their own competitor to iOS, a move which ultimately resulted in Apple jettisoning the search giant’s products almost entirely from iOS 6. Now Samsung is finding out the same thing: not only has it been found guilty of infringing Apple’s intellectual property and been told to pony up a $1 billion fine, but now Apple is now taking away their portion of Samsung’s multi-billion dollar manufacturing business.

Samsung’s long been one of Apple’s most industrious manufacturing partners, having supplied previous iOS devices with many of their components from their systems-on-chip to other components, like the display. Samsung’s made a lot of money manufacturing these components for Apple, which was what made it always a risk that Apple would pull away their manufacturing business from Samsung as soon as they could in response to the IP infringement of the Galaxy series of smartphones and tablets. After all, why continue to build your products in a competitor’s factories when all that results in is giving them an early look at your products?

According to The Korean Times, this split is now definitely happening. According to a senior Samsung official, there used to be a dichotomy in the Apple-Samsung relationship: Apple and Samsung were bitter adversaries when it came to releasing smartphones and tablets, but happy partners in the manufacturing realm. Now Apple has indicated that Samsung’s manufacturing arm will no longer have their business.

The Samsung official said that “Samsung’s agreement with Apple is limited to manufacturing the A6 processors. Apple did all the design and we are just producing the chips on a foundry basis.”

In addition, Apple’s made the iPhone 5 almost entirely without help from Samsung. For example, previous iPhones had displays supplied by Samsung; this time around, Sharp, LG and Japan Display are the ones supplying the screens.

Samsung is, of course, doing well with its Galaxy series of smartphones, especially the Galaxy SIII, which managed to briefly outsell the iPhone 4S back in August. But is it worth it? Apple’s taking billions away from Samsung at this point between legal fines and manufacturing deals. Long term, of course, becoming an Apple-sized presence in the smartphone and tablet market is worth far more to Samsung than keeping its relationship with Apple intact, but can Samsung ever get there?

  • FriarNurgle

    NO SOUP FOR YOU.

  • Jdsonice

    Well since Samsung (and Google as a proxy) will no longer have early access to Apple products the chances are that Samsung (and Google by proxy) will no longer be able to copy Apple products effectively. Hopefully that should stop them from stealing and cheating in the market.

  • Len Williams

    While having Apple’s chip designs and manufacturing screens for Apple does give Samsung a bit of information on Apple’s products, Samsung doesn’t actually build the iPhone. They don’t have a solid idea of what each new version of iPhone and iPad will contain or look like. Samsung is much like everyone else who has to wait for leaks from China to see the assembled product.

    Joking aside, it’s long overdue that Apple cut manufacturing ties with Samsung. It’s like finding out your roommate is sleeping with your girlfriend and stealing money from you, while continuing to live with them and handing over the rent money each month. Very awkward. I would imagine that Samsung has been waiting for this shoe to drop ever since they came out with their very first iPhone clone. Ideally I’d like to see Apple eventually build their own manufacturing plants for chips and screens in several locations around the world, redundantly splitting them up so that local natural disasters won’t destroy their entire production. Apple definitely has the cash to do this, and I’m surprised they haven’t bought up and retooled factories and assembly plants before now.

  • theonlycog

    Cutting their ties with Google has not been too successful so far (Maps!). Let’s hope they pull off the Samsung severing a little smarter

  • Bob Smogango

    What I find amusing is that according to a Forbes article on IPads, Korea’s own Korean Telecom bought 32,000 iPads. I wonder why they didn’t just automatically buy Samsung products, being that Samsung is Korea’s largest electronics company. Maybe, they SUCK. haha.

  • iSteve

    Cutting their ties with Google has not been too successful so far (Maps!). Let’s hope they pull off the Samsung severing a little smarter

    Stop OK about Maps.

    Maps work fine and only 5% of users are impacted.

  • extra_medium
    Cutting their ties with Google has not been too successful so far (Maps!). Let’s hope they pull off the Samsung severing a little smarter

    Stop OK about Maps.

    Maps work fine and only 5% of users are impacted.

    The denial phase has set in, mark it down.

  • extra_medium

    Well since Samsung (and Google as a proxy) will no longer have early access to Apple products the chances are that Samsung (and Google by proxy) will no longer be able to copy Apple products effectively. Hopefully that should stop them from stealing and cheating in the market.

    So you’ve gone straight to just injecting the kool-aid?

  • Shaun Green

    I’m sure the folks at Samsung have factored in the loss of Apple’s business against the potential revenues from making their own competing smartphones and tablets. Didn’t they just post record numbers recently. It’s probably about time Apple took more control over it’s key components rather than relying on buying in everything.

About the author

John BrownleeJohn Brownlee is a Contributing Editor. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.

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