What If Samsung Stopped Supplying Parts For the iPhone 4?

Illustration for article titled What If Samsung Stopped Supplying Parts For the iPhone 4?

This is all hypothetical, but what would happen to the iPhone 4 if Apple's vigorous legal campaign against Samsung caused an irreparable rift between the two companies?

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Several key components of the iPhone 4 including the Flash Memory, DRAM memory and applications processor come from Samsung. Together, these account for $45.68 in parts which is 26% of the final component cost of the iPhone 4.

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If Samsung were to turn its back on Apple, who would supply these components, how much would they cost and how quickly could another company supply them? We don't often think about it, but Samsung supplies these critical components to Apple at a reasonable price and it supplies them at a volume few companies could match. Remember, Apple shipped 20 million iPhones last quarter which is a lot of processors and flash modules in a relatively short amount of time.

Thankfully, there's no sign Samsung is ready to walk away from one of its biggest customers. But with Apple winning injunctions left and right against the Galaxy Tab, you can't help but wonder, what if? [The Economist]


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DISCUSSION

What if? Apple will find other suppliers (maybe multiple), pay a little more for their components, and still make a killing selling iPhones. On the other hand, Samsung would be raping their own butt; which would be convenient since the management will all get new a-holes bore into them by the shareholders for severing ties with one of their biggest customers.

And Apple would *still* sue Samsung's ass for infringement.

Yeah, what if. What if Samsung did the stupidest thing they could ever do :-P