Apple Twists The Knife In Samsung

Take that Samsung! TSMC is going to be the exclusive supplier for Apple's ARM A10.

Take that Samsung! TSMC is going to be the exclusive supplier for Apple’s ARM A10.

TSMC set to be sole supplier of ARM A10

Things keeps going from bad to worse as Apple twists the knife in Samsung yet again. I can’t get over how “tone deaf” the management of the South Korean company seems to be. I’m sure they “hear” all the negative commentary surrounding their refusal to settle with Apple, pay the judgements and move on to new business opportunities with the iMaker. I’m also sure that don’t understand they can’t win in this game.

Apple was willing to give Samsung the benefit of the doubt. The Cupertino powerhouse demonstrated its good faith by using both TSMC and Samsung to produce the new ARM A9. Evidently, this move by Apple was lost on the folks over at Samsung Mobile.

How did Samsung show its gratitude? The South Korean company’s lawyers dumped a ridiculous number of motions and demands on Judge Lucy Koh. The judge was not very happy. She informed both companies to essentially “knock this s*#t off!”

Earlier this week, Apple introduced the new iPhone 6S, iPhone 6S Plus and the iPad Pro, all powered by the ARM A9. Exact details regarding the production split are not known. Rumors had indicated that TSMC was producing as much as 65% of Apple’s iPhone orders. The company’s ARM A9 may be the exclusive chip powering the iPad Pro,

Word came out yesterday that Apple is going to rely exclusively on TSMC for production of the next generation ARM A10 due for next year’s iPhone 7 models as well as new iPads. That represents a staggering loss for Samsung. At the very minimum, Apple will sell 200 million iPhones this fiscal year. It’s reasonable to expect a minimum growth rate of 15%. That would represent sales of 230 million iPhones.

Most analysts looking at Apple’s Bill of Materials speculated the ARM A9 costs $37 each. That represents a total cost to Apple of $8.5 Billion Dollars. According to the reports, not a single dollar is expected to be transferred to Samsung. Did I just hear the Korean equivalent of “Ouch?”

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