Samsung hints Apple may release 7.85-inch iPad in 2012, spend $11 billion on Samsung parts

Samsung hints Apple may release 7.85-inch iPad in 2012, spend $11 billion on Samsung parts
Apple is in hot war over intellectual rights with Samsung but its dependance on the Korean hardware giant’s production is just going to grow in 2012. While in 2011 Apple spent nearly $7.8 billion on Samsung-made parts, in 2012, this number will grow further to $11 billion.

“The amount of the current contract is around $9.7 billion, butis expected to rise to $11 billion by the end of this year as Apple is planning to release a smaller iPad, probably with a 7.85-inch screen, and to sell more of its MacBook Air PCs using Samsung’s faster solid state drive storage,” a Samsung executive told The Korea Times speaking on the condition of confidentiality.

Now, while the focus of the executive’s message the fact that Apple will spend more on Samsung parts, having a confirmation of the real possibility for a 7.85-inch iPad from a Samsung official is probably even bigger news.

Samsung is known for making computer memory chips, NAND flash memory, mobile processors and displays. It’s said to be investing more into new screen technologies, a key to a company’s success on the mobile market.

Apple is tied in contracts with Samsung until 2014, and the sum that it spends on hardware is likely to only increase by that time. So while on one hand Samsung shouldn’t be pleased with the success of the iPad over its Galaxy Tabs and Notes, on the other hand, it’s still making profits out of Apple’s gadgets as well.

source: Korea Times via SlashGear

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26 Comments

1. andro.

Posts: 1999; Member since: Sep 16, 2011

R.i.p ipod touch,or is it welcome ipod touch xl?! All this collaboration with Samsung makes apples court case attacks on Samsung look even more silly

21. Lucas777

Posts: 2137; Member since: Jan 06, 2011

samsung and apple both jointly agreed to keep their manufacturing side out of the dispute.. eventually it might deteriorate but shortly i would say no.. and somehow i just dont see apple making a smaller ipad… yes they would make fabulous amounts of money, but idk where it would fit into the pricing scheme of their products… maybe it will go for 250-300

25. bayusuputra

Posts: 963; Member since: Feb 12, 2012

yeah, it's quite silly when you try to bite the hands that feed you..

2. itiswhatitis

Posts: 423; Member since: Jan 23, 2012

Seems like,it really is nothing personal just business!

3. clevername

Posts: 1436; Member since: Jul 11, 2008

I don't know much about international business law, but here in America this is a huge no no for a contractor to release info like that. Will there be any fallout I wonder?

5. Pdubb

Posts: 249; Member since: Aug 08, 2011

If true I bet it will be a big stink in the end!

17. clevername

Posts: 1436; Member since: Jul 11, 2008

It should be. This is is basically insider trading. People get time in prison for it. Although usually insider trading is meant to make an individual money, in this case it would be to further the company and not the individual. Same premise tho.

18. PaulNotFromSweden

Posts: 55; Member since: Sep 16, 2011

Insider trading is buying and selling securities (like stocks) based on information that is not available to the general public. This information from Samsung has nothing to do with insider trading. They may be revealing trade secrets, in which case I would expect Apple's legal department to gently remind Samsung of the terms of their contract.

19. clevername

Posts: 1436; Member since: Jul 11, 2008

Ah thx for the correction, don't know what I was thinking.

4. Pdubb

Posts: 249; Member since: Aug 08, 2011

With Apple's private nature it would seem someone at Samsung is about to be in some trouble. Maybe this is how their relationship ends.

6. itiswhatitis

Posts: 423; Member since: Jan 23, 2012

Or maybe apple is paying them to create rumors, you never know what happen behind the scene!

7. cellphonator

Posts: 298; Member since: Oct 29, 2011

That's crazy, all these fights in which we take part of one rather than the other one and then they do business like old buddies like nothing is happening. That's business, I know but it makes you think...

8. good2great

Posts: 1042; Member since: Feb 22, 2012

this is funny... you guys on here dont look at the big picture with all this apple vs samsung... while yall cry your hearts out picking sides these two companies are great business partners. Samsung has contributed a lot to Apple's success. and Apple is making Samsung rich as well...

9. gallitoking

Posts: 4721; Member since: May 17, 2011

I learned my lesson . no more attack to Samsung. we fighting here and then shaking hands depending on one another,..

10. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Well really Apple depends on Samsung's high quality products. Imagine what an iPhone 4S or a new iPad would look & perform like if it didn't have the Samsung DNA in its body. It would be an ugly, poor working machine! I mean an iPhone or an iPad are just Samsung products with an Apple logo on them! lol

12. good2great

Posts: 1042; Member since: Feb 22, 2012

you are absolutely right! apple needed the "best" manufacturer to make their products... apple's beef isnt with Samsung... its with Android... software vs software remember Steve's dying wish...

13. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

'Imagine what an iPhone 4S or a new iPad would look & perform like if it didn't have the Samsung DNA in its body.' It would probably look like a Kyocera Echo™ and perform like a Windows Mobile 5, 6, 6.1, 6.5, 7, 7.1 phone.

14. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

LMAO!!!!

22. Lucas777

Posts: 2137; Member since: Jan 06, 2011

there is no windows mobile 7/7.1…. its windows phone.. which performs better in real life than almost any other phone and apple creates all their tech… samsung just puts it on an assembly line… its not like apple uses samsung amoled screens and such…

23. chadrick0814 unregistered

You are right, Apple goes to LG for its IPS screens. If its as simple as "putting it on an assembly line," why do they pay Samsung and LG billions when they can pay their workers at Foxconn 2 slices of bread and 3 cents an hour to do it?

24. Lucas777

Posts: 2137; Member since: Jan 06, 2011

well i would hope samsungs and lg's and sharp's assembly lines are a little more well kept.. i dont think foxconn could produce the quality of tech needed by apple-- they use foxconn for easier things and for assembly

26. bayusuputra

Posts: 963; Member since: Feb 12, 2012

apple didn't create all the tech, they just created the spec sheets.. it is Samsung who made them reality.. so it's not as simple as putting it on assembly line..

11. dragonnub99

Posts: 14; Member since: Nov 23, 2011

why is all phonearena news talking about apple product

15. Obviously

Posts: 29; Member since: Feb 29, 2012

Take a wild guess.

16. jmoita2

Posts: 930; Member since: Dec 23, 2011

Ponearena is starting to suck,it reads and feels more like Apple.com every day...

20. gallitoking

Posts: 4721; Member since: May 17, 2011

the irony on your statement is that here is filled with fandroids... 5-1 at least

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