Apple 'punishes' Samsung for 'gaffe'
updated 07:05 pm EDT, Wed May 31, 2006
Gaffe costs Samsung
Apple's penchant for all things secretive may have cost Samsung some business. The EE Times reports that Apple's has "punished" the South Korean semiconductor giant for revealing details about the forthcoming iPod before they authorized it. The report says that an apparent "gaffe" by an executive from Samsung Electronics has cost the South Korean semiconductor giant some of Apple's iPod chip business. The company has since decided to stick with SigmaTel, according to an analyst. "Despite signs that Samsung was taking over the iPod chip business, struggling SigmaTel has managed to hold on to its key chip design within Apple's current — and new — iPod Shuffle MP3 line, said Craig Berger, an analyst with Wedbush Morgan Securities Inc. (Los Angeles)."
"We have increased confidence that SigmaTel will continue supplying the MP3 processor into the Apple Shuffle in 2H '06, after a Samsung executive commented publicly that Samsung supplanted PortalPlayer in the next-generation iPod Nano," the said in the report. "It is not surprising that Apple would 'punish' Samsung for commenting publicly about its position within the iPod Nano follow-on, and we believe that SigmaTel is likely to be the resulting beneficiary of the Samsung executive's gaffe."
Apple current uses SigmaTel's media processor chip in its current entry-level, flash-based iPod shuffle and uses PortalPlayer's media processor chip within its current iPod nano line. The analyst said that Samsung will supply the media processor for Apple's new iPod nano, but not the next-generation Shuffle.
Last month, Samsung said it had landed a contract to supply some of the internal components on the next generation iPod, days after longtime iPod supplier Portal Player said that Apple would not use its chips for its future high-end iPods, The contract was said to be the largest LSI chip order for the company and was purportedly at the expense of Portal and other suppliers such as SigmaTel, Actions, and LSI Logic--all of whom were were also considered front-runners for the new iPod processor contract.
PortalPlayer
05/31, 10:34pm reply
They aren't all based on PortalPlayer? I thought that was the kit and kaboodle.
ccsccs7
Mac Enthusiast
Joined: Nov 2001
What?
05/31, 11:32pm reply
What do they base the following statement on?
"It is not surprising that Apple would 'punish' Samsung for commenting publicly about its position within the iPod Nano follow-on, and we believe that SigmaTel is likely to be the resulting beneficiary of the Samsung executive's gaffe."
Did someone from Apple state this? Was it known that the shuffle wasn't already going to continue to use STs chips? etc.
This sounds like nothing but a lot of speculation on what really has transpired... report with facts or keep quiet IMHO.
shawnce
Fresh-Faced Recruit
Joined: Nov 2000
um...
06/01, 09:48am reply
If you read all the little word thingies in the article, you note it says SigmaTel makes the MP# chip for the shuffle, while PortalPlayer makes the MP# chip for the rest of the iPods, so, no, PortalPlayer isn't the kit and kaboodle.
Report facts or keep quiet? Hehe, then there would be pretty much no 'news,' since anymore it's speculation, or speculation based on someone's speculation, or... And if you're questioning Apple 'punishing' Samsung, just look back at Apple's history of slitting the throats of those who cross them in any way...
chulitomio
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Joined: May 2004
can you say ATi?
06/01, 10:48am reply
I knew you could...
zac4mac
Senior User
Joined: Oct 1999
in a similar story . . .
06/01, 11:14am reply
Apple has decided not to go with Victoria Secret supermodel Giselle after she revealed she is in a new Apple comercial.
Apple has decided to replace her with Joan Collins.
I understand Apple has to make a point but sometimes I wonder . . . are they sacrificing quality by going with another chip just to punish Samsung?
benhur
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Joined: Jan 2001
@benhur
06/01, 11:56am reply
LOL!!!!
milhouse
Mac Enthusiast
Joined: Jan 2001
More likely
06/01, 12:38pm reply
Apple did not want Samsung to have too much "clout" in its iPod business. This "punishing" scenario seems like speculation that sounded like interesting "news" so it's getting repeated in the media outlets. Samsung is no ATI; it's a powerhouse supplier Apple wants on its side. It's a very good thing when Sansung wants iPod to succeed.
kw99
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Joined: Nov 2001
a*** DEFONCE a*** ECARTE
07/26, 09:08am reply
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