[HN Gopher] Samsung and Apple is tech's "unhappiest marriage"
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       Samsung and Apple is tech's "unhappiest marriage"
        
       Author : retskrad
       Score  : 61 points
       Date   : 2023-03-06 17:27 UTC (5 hours ago)
        
 (HTM) web link (9to5mac.com)
 (TXT) w3m dump (9to5mac.com)
        
       | peoplearepeople wrote:
       | At what point does Apple just buy Samsung?
        
         | justanother wrote:
         | Given the percentage of Korean GDP for which Samsung accounts,
         | and the political influence they wield, they're effectively a
         | state institution. We can assume they're not for sale, ever.
        
         | tpmx wrote:
         | Antitrust laws in US/EU make that unlikely. Maybe they could
         | buy Samsung Display though, if Samsung the conglomerate got
         | desperate enough?
        
           | eklitzke wrote:
           | Even if they could do this they'd probably be forced to stay
           | in the same business as Samsung supplying displays to third
           | parties (e.g. all of the Google Pixel phones have Samsung
           | displays). It's really hard to imagine Apple would want to be
           | in the business of doing display R&D and then selling the
           | technology to competitors.
        
             | tpmx wrote:
             | True.
        
           | cududa wrote:
           | I highly doubt South Korean regulators would approve a sale
           | of their largest single GDP contributor
        
             | tpmx wrote:
             | Yeah. I meant from an antitrust perspective.
        
           | tcmart14 wrote:
           | They maybe could, but I think it would be pretty unlikely. A
           | lot of Asain companies strive to bring everything in house.
           | Samsung Display is not just for making TVs, but also internal
           | B2B as a supplier for Samsung phones, and such. This allows
           | them to evade or not take as much of a hit by the value added
           | tax I believe? If Samsung sold their display division, they
           | would would then have to pay the 10% VAT on each display to
           | make their phones. Right now, Samsung display can make the
           | screens and they don't have to pay VAT.
           | 
           | My understanding of S. Korean VAT could also be wrong.
        
             | qilo wrote:
             | Businesses always pay VAT on purchases, and collect VAT on
             | sales, but can reclaim the paid VAT if purchase was done
             | for business purposes. This basically means that the
             | ultimate wholly VAT payer is always the end consumer
             | (person, not business).
        
               | tcmart14 wrote:
               | So while costs are added on to the customer, it would
               | result in a price raise resulting in lessening their
               | competitive advantage. While they may not eat costs, it
               | may cause them to loose out on potential customers, so
               | they would still feel the VAT, just not directly then,
               | correct?
        
         | dragonwriter wrote:
         | Apple has 57.1% of the US Smartphone market, Samsung has 29.3%,
         | the next competitor has less than 5%.
         | 
         | I know antitrust regulators are _mostly_ asleep at the switch,
         | but they might wake up for that.
         | 
         | (And the US isn't the only jurisdiction and smartphones aren't
         | the only market regulators might have concerns about.)
        
         | gjsman-1000 wrote:
         | Samsung is like what happens if Microsoft Office, Microsoft
         | Windows, Microsoft Xbox, and all of these divisions were
         | actually separate companies with a very loose federation
         | underneath the name "Microsoft" even though the real
         | "Microsoft" doesn't have much power over any of the individual
         | members.
         | 
         | As a result, you've got Samsung Display putting screens in
         | iPhones and occasionally screwing over Samsung Electronics
         | which is a completely separate company, that is still within
         | the loose federation (and, due to the unusual legal structure
         | and antitrust concerns, Samsung Display can't offer even the
         | slightest of unfair deals to their own Samsung Electronics
         | group, for example). And on the fringe ends you have Samsung
         | Life Insurance, Samsung Skyscraper Construction, and Samsung
         | Medical.
        
           | zeusk wrote:
           | A while ago I learnt that Samsung made artillery guns as
           | well.
           | 
           | https://en.wikipedia.org/wiki/K9_Thunder
           | 
           | I wonder if it runs bixby.
        
             | MikusR wrote:
             | CPU is i486 and it runs DOS. Also Samsung subsidiary that
             | made it was sold 9 years ago. So no Bixby.
        
           | Miraste wrote:
           | My favorite recent one is how the mobile division started
           | refusing to use new Exynos chips from the semiconductor
           | division. Imagine if Apple designed and built an A16 chip and
           | then put Qualcomm SoCs in the iPhone.
        
       | jseliger wrote:
       | URL should be https://www.theinformation.com/articles/how-apples-
       | need-for-...
        
         | pseudostem wrote:
         | Some of it is paywalled, seems interesting... Got another link
         | perhaps?
        
       | inconceivable wrote:
       | before samsung it was adobe. a friend of mine who used to work
       | for adobe described the marriage as "staying together for the
       | benefit of the kids."
        
       | tatrajim wrote:
       | True or not, in the past there was a persistent rumor going
       | around Seoul that every time Apple had scouted out a good
       | location for its first store in Korea, Samsung would mysteriously
       | learn of it and manage to block the transaction. Definitely a
       | scorched earth competitive relationship.
        
         | seatac76 wrote:
         | If True that is really petty and goes to show the competition
         | was at a different level all together.
        
         | gjsman-1000 wrote:
         | Samsung and Apple were in court for 7 years over patent
         | infringement claims. Apple won, but then they were in court for
         | many more years trying to determine what the damages should be.
         | 
         | They finally settled outside of court in an anti-climactic
         | ending.
        
       | jhickok wrote:
       | Honestly the anecdotes seem like the sort of thing that happens
       | all the time. I don't have access to the article cited but the
       | two have brought so many products to market together that a bit
       | of friction seems unavoidable.
       | 
       | As an aside, I am excited to see what Apple can do when they
       | start making displays in-house.
        
       | rsynnott wrote:
       | > Apple has tried and failed many times over the years to ditch
       | Samsung. One such attempt occurred when Apple had hoped to use
       | microLED display technology instead of OLED in the iPhone X
       | 
       | This sounds a _bit_ far-fetched? It's really, really, hard to
       | imagine a phone-scale MicroLED being practical at _any_ price
       | _now_, never mind when the iPhone X came out or at a price anyone
       | could afford.
        
         | toast0 wrote:
         | That depends on if it's a microLED backlit LCD or microLED
         | direct emissive. For a backlight, it seems possible, for direct
         | emission, all I've heard about those so far have rather large
         | pixels, so it wouldn't work for a phone.
        
         | ladberg wrote:
         | > This sounds a _bit_ far-fetched? It's really, really, hard to
         | imagine a phone-scale MicroLED being practical at _any_ price
         | _now_, never mind when the iPhone X came out or at a price
         | anyone could afford.
         | 
         | This sounds a _bit_ far-fetched? It's really, really, hard to
         | imagine a phone-scale LiDAR being practical at _any_ price
         | _now_, never mind when the iPhone 12 Pro came out or at a price
         | anyone could afford.
         | 
         | (For reference, LiDAR cost tens of thousands of dollars and
         | took a ton of space before being miniaturized in iPhones)
        
           | cronix wrote:
           | > (For reference, LiDAR cost tens of thousands of dollars and
           | took a ton of space before being miniaturized in iPhones)
           | 
           | Samsung, LG and Huawei all used lidar in phones before Apple.
           | I don't believe any of them still do due to lack of adoption.
           | Basically not many used it to justify the cost.
        
             | ladberg wrote:
             | Not trying to argue, but do you have a source for that? I
             | can't find any examples of handheld consumer LiDAR before
             | Apple.
        
               | rootusrootus wrote:
               | This seems to be a misunderstanding. Samsung had some
               | time-of-flight camera technology it used on a few models,
               | but not LIDAR. I've seen some tech articles blur the
               | distinction enough that people think Samsung was
               | including LIDAR on smartphones like the S20.
        
         | [deleted]
        
       | crazygringo wrote:
       | What is it that makes Apple so reliant on Samsung displays?
       | 
       | It uses TMSC to make chips which is a "neutral" company.
       | 
       | Is there no "neutral" equivalent of display manufacturing?
       | 
       | Is Samsung just so advanced in displays that nobody else can
       | catch up?
        
         | AlotOfReading wrote:
         | Korea simply ate Taiwan's lunch when it came to displays.
         | Samsung got a big boost from Sony and LG from Philips and
         | quickly grew to massive scales with the mobile boom. Samsung
         | invested heavily in OLED and gathered a huge war-chest of
         | patents / near complete market dominance, then managed to
         | escape the worst of the political fallout from the LCD price-
         | fixing scandal [0]. Their Japanese and Taiwanese competitors
         | didn't invest as early or heavily, so they fell far behind.
         | Apple spent millions propping up Sony's mobile display division
         | in particular as a second sourcing option (as well as buying
         | their production equipment), but Samsung was simply too far
         | ahead and reinvesting too much to compete. LG is a strong
         | competitor today and chinese competitors are really starting to
         | narrow the gap though.
         | 
         | [1] https://en.wikipedia.org/wiki/TFT-
         | LCD_(Flat_Panel)_Antitrust...
        
         | tagyro wrote:
         | Just one data point:
         | 
         | I bought a Samsung Odyssey G9 Neo - a 1600+ euro monitor - in
         | April last year. It's been more than 3 months that I try to get
         | it fixed because of multiple issues:
         | 
         | - random "ticking" sounds
         | 
         | - screen corruption when using it via DP (random glitches)
         | 
         | - when using picture-by-picture, via the 2 HDMI connections, it
         | randomly switches left and right inputs, when waking the
         | computer from sleep
         | 
         | - 2 dead/stuck pixels (which Samsung support said doesn't
         | qualify for a repair/replacement - it must be more than x pixel
         | in a certain y area!?)
         | 
         | (yes, I've changed the DP/HDMI cables, tested on
         | Windows/macOS/Linux, updated to the latest firmware).
         | 
         | Is Apple a shitty customer? Most probably. Are Samsung displays
         | good? Abso-f**ing-lutely no!
         | 
         | I know it's just one data point, but I will never purchase
         | another Samsung product (willingly/knowingly).
        
         | Miraste wrote:
         | Yes, at least in smartphone displays. I believe the closest
         | competitor is LG, and their displays are noticeably, visibly
         | worse.
        
           | samtho wrote:
           | LG seems to have focused in the appliance business (TV
           | screens, domestic consumer electronics, etc) and they white
           | label 99% of the OLED panels coming off of their assembly
           | line, with some making their way into Samsung TVs. While
           | Samsung has a superior panel for small displays, LG's focus
           | consumer electronics has given it a small lead in the larger
           | display race. They have better SDK/HDKs, more power efficient
           | screens, and an array of tiers of displays to sell to their
           | customers. If you bought a Sony, Vizio, or Sharp branded TV
           | in the last 5 years, it for sure has an LG display in it.
           | Other brands use LG as well but those three have an exclusive
           | contract.
           | 
           | The dynamics of this business is fascinating.
        
             | MikusR wrote:
             | No Samsung tv has LG Oled panel. Last year Samsung released
             | their first Oled tv since 2013 with their own panel. Also
             | top of the line Sony TVs started using Samsung QD-Oled last
             | year.
        
           | formerly_proven wrote:
           | Apple also used BOE OLEDs (12th and 13th I think?) and the
           | iPhone 12 OLED displays have just some of the worst viewing
           | angles I've ever seen out of _any_ display, including cheap
           | TN panels like those IBM and Lenovo liked to put into
           | Thinkpads. Though apparently there is quite some sample
           | variation to that... also tons of purple /green fringing but
           | apparently that's considered normal for phone OLEDs.
        
             | MikusR wrote:
             | That purple/green thing is also on LG tvs and samsung
             | amoled phone/tablet screens.
        
               | Miraste wrote:
               | Yes, it's not because of the OLED tech but due to the
               | weird pixel arrangements many of them use.
        
       | deafpolygon wrote:
       | Disagree. More like symbiotic parasitic relationship. They
       | wouldn't exist without each other, at this point.
        
         | lotsofpulp wrote:
         | South Korea's government would surely prop up Samsung.
        
           | sangnoir wrote:
           | The Obama administration vetoed an ITC ruling that would have
           | blocked the importation of some iPhones and iPads after
           | Samsung won a patent case against Apple.
           | 
           | Governments thumb the scales for hometown heroes.
        
       | gtvwill wrote:
       | Lol apples relationship with the world is like being with an
       | abusive partner. They want to control everything you do, control
       | who you interact with, control how you spend your money. Apples
       | toxic af and the red flags have been flying for years.
        
       | znpy wrote:
       | Clownish from apple people to complain about other companies
       | protecting their engineering secrets.
        
       | webaholic wrote:
       | Absolutely the right thing to do given what Apple did to previous
       | collaborators like Imagination Technologies for GPUs and what
       | they tried to do to Qualcomm for modems.
       | 
       | https://mashable.com/article/apple-imagination-takeaway
       | 
       | https://news.ycombinator.com/item?id=25673631
       | 
       | https://www.digitaltrends.com/mobile/apple-office-near-imagi...
        
       | nerdjon wrote:
       | It kinda feels like the situations mentioned here may be
       | attention grabbing, but also not really all that surprising?
       | 
       | I mean "marriages" like this don't really seem all that uncommon
       | in tech today.
       | 
       | For example, Sony makes laptops that sell Windows which really
       | just further cements Microsofts stake in gaming while also
       | putting the playstation up against xbox (also they signed an
       | agreement in the Cloud for gaming).
       | 
       | Apple has the relationship with Google for search and at one
       | point maps.
       | 
       | AWS is adding more and more ties to other cloud systems like
       | Azure.
       | 
       | I am sure there are plenty of other examples of companies using
       | other companies products even though somewhere else they are
       | competing. And then when they need to share information they are
       | very careful or borderline hostile.
       | 
       | But these companies have such a large portfolio that you can't
       | shoot yourself in the foot (put out a poor product) at the cost
       | of not doing business with someone who may have a conflict of
       | interest.
        
         | SSLy wrote:
         | > _Sony makes laptops that sell Windows_
         | 
         | Not the case for ... (checks notes) 9 years.
        
           | jjtheblunt wrote:
           | it looks like 9 years or so ago they spun off but own
           | branding and other parts?
           | 
           | https://us.vaio.com/
        
             | MikusR wrote:
             | They sold Vaio and spun off Bravia.
        
           | nerdjon wrote:
           | Huh... you are right.
           | 
           | Well my bad, I have never been in the market for a non gaming
           | windows computer so didn't think to check. I just assumed
           | that was still part of their business.
        
       | kurthr wrote:
       | To be fair, the "second unhappiest marriage" is between SEC (the
       | parent OEM Samsung) and their associated Samsung display and IC
       | companies (SDC and SLSI). Samsung is run a different way (hyper
       | competitive - search for their annual VP promotion/firing -
       | battle royale) and sees it's suppliers and customers as
       | competitors. It's like Amazon from an earlier era on steroids.
       | Every possible source of margin is theirs to take.
       | 
       | For clarity, you really have to distinguish the OEM from the
       | display manufacturer. They compete internally for margin. Also,
       | it's not just Apple that is excluded from display fabs... that's
       | like everyone unless you're invited by a VP. Even then expect
       | them to take away every device (including pencil and paper) you
       | have in addition to your passport. It's not surprising Apple
       | engineers would work from their hotel rooms.
       | 
       | Expert advice: If they take your passport and won't return it,
       | call the US embassy and say you are being held against your will.
        
       | bob1029 wrote:
       | I recall Apple being a very "aggressive" customer during my time
       | at Samsung's semiconductor manufacturing lines in ATX.
       | 
       | Lots of ridiculous lot priority schemes were foisted upon us. I
       | suspect due to Apple iterating their LSI designs like they owned
       | the place.
        
         | tiffanyh wrote:
         | Care to share more details.
         | 
         | Would make for a fascinating read.
        
           | asciii wrote:
           | +1 for more details in a blog
        
         | bastardoperator wrote:
         | Apple is aggressive with all their vendors. If you're taking
         | money from Apple they want to call all the shots and they don't
         | have any problems holding your feet to the fire or acting
         | borderline unprofessional when it comes to demands.
        
       | [deleted]
        
       | tpmx wrote:
       | _In general, Apple suppliers have to take the "financial risk of
       | storing and absorbing the cost of unneeded parts," but that's not
       | the case for Samsung._
       | 
       | Good job standing up to a bully, Samsung! I imagine TSMC is the
       | one other supplier that manages to do that.
        
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