News
SigmaTel to keep iPod shuffle socket, Samsung ‘punished’
SigmaTel will likely remain the chip supplier for Apple’s iPod shuffle, after a Samsung executive revealed publicly that the company had won a contract to supply chips in future iPods. According to Wedbush Morgan Securities, Apple may be “punishing” Samsung for the leaked news by keeping SigmaTel as the iPod shuffle chip supplier. “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,” wrote analyst Craig Berger in a report Tuesday.
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1
Loose lips sink ships….....
Posted by SouthernGothic on May 31, 2006 at 6:54 AM (PDT)
2
As much as Apple hates secrets getting out, I don’t think Samsung is being punished. It would be very dumb to stop a contract to a winning company whose design has proven superior (if not superior equal and cheaper) on the premise that they let it slip, and award it to second best to prove a point. That’s just playground economics. Its more likely that in the original samsung statement they simply meant future nano’s and NOT Shuffle’s….. hence now SigmaTel getting the Shuffle gig.
Posted by Piarco75 on May 31, 2006 at 9:03 AM (PDT)
3
Yeah, billions of dollars over spite. That’s not how you get to #1, and it’s definitely not how you stay there.
Whatever.
Posted by Gordy. on May 31, 2006 at 9:25 AM (PDT)
4
Yeah, billions of dollars over spite.
And you have some insider information that there were actually “billions” to be had in chosing Samsung over Sigmatel?
If the two bids were close to begin with, why not choose Sigmatel over Samsung if only to send a blunt message to Samsung? It’s not being petty or spiteful, but making a point that if one is going to work with Apple, then you do it The Apple Way. If not, then there’s always Creative.
Posted by flatline response on May 31, 2006 at 9:37 AM (PDT)
5
<<<<do it The Apple Way
Isn’t this the Wal-Mart way?
Posted by Mark on May 31, 2006 at 9:58 AM (PDT)
6
It isn’t like this is anything new…I’m sure some old-time Mac users remember how Apple “punished” ATi by going with nVidia graphics chips on the Power Mac G4 several years ago.
Posted by rampancy on May 31, 2006 at 12:02 PM (PDT)
7
Samsung should’ve known this. Apple is notorious for doing things this way. And to say that it is not the way to run their business is so contrary to a model that has proved successful. Apple’s sole edge in the industry is their innovation. If they feel that their innovations are being compromised by leaking information, then they punish companies. One year at a convention nVidia or ATi announced that Apple would be using their chip, not only were they banned from the convention, even after all the flyers and placecards had been printed up (which I might add were individually crossed out in marker as an added insult), but the product was no longer offered as a stock option on their models. Respect the way that Apple does business and you’ll get on fine.
Posted by Bamboo Brown on June 4, 2006 at 8:12 PM (PDT)