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Dmick90 on 08 March 2013
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GamersAreTrash said:
Dmick90 said:
JoeTheBro said:
I understand buying apple but I doubt they will ever have the money in the bank to buy Samsung.


Apple is worth many billions more than Samsung. And Sony could never buy Apple, they are much, much bigger than Sony. Apple was contemplating the purchase of Sony a few years ago actually. Samsung will never be bigger than Apple because first of all the majority of their profits come from Apple! Apple is Samsung's biggest customer because they manufacture the processors, graphics chips, and other components for the iPhones, iPods, and iPads. If Apple were to totally cut them off which they wil be soon when they switch to Intel chips for the iPhone, it would be devastating. It will cut off Samsung's money supply which they need for marketing, design, research, new technologies, etc. The only reason Samsung is as big as it is today is because of Apple. Apple also has a slew of new products on the way with the Apple TV set (likely to put a dent in Samsung TV marketshare), the rumored iWatch, new iPhones coming to China mobile which is the biggest carrier in China. The only direction Apple can go is up, Apple gets bigger and bigger every day. 

This is blatantly false. The only area where Apple is worth billions more than Samsung is in market cap, which is just based on what *Analysts* think your company can make in the future. It's not a valid indicator of of how much assets you have or how much money your company is making right now. Just look at Amazon's ridiculous 900 P/E ratio.

Also, Apple may be Samsung's biggest customer, but to say most of Samsung's profits are from Apple's orders is just ridiculous. The Samsung Empire is composed of more than 80 companies that are involved in almost everything under the sun. Samsung Electronics alone made $22 billion in profits for 2012. 30 of the other companies made $21 billion. And note that the $43 billion in profit (Which is greater than Apple's $41 billion) was just from 31 of the 80 companies in Samsung.

"Dow Jones Newswires briefly reports on an article from the Korea Economic Daily claiming that Apple is set to sign contracts that would see Samsung providing $7.8 billion in parts for Apple's mobile devices this year, making Apple Samsung's largest customer." Simple math tells us that more than a third of Samsung's profits come from Apple. Apple is a much more profitable company than Samsung. Samsung is bigger by revenue and assets but Apple is far bigger in profits. What Samsung makes on TVs, Computers, Galaxy phones/tablets, and refrigerators (lol) is peanuts compared to what Apple makes. Apple made double what Samsung made in profits for 2012.

Many of those 80 different companies operate under the Samsung name as separate entities and are simply affiliates or alliances with other companies. The majority owned which are the subsidiaries, where most of the revenue and profits come from are Samsung Electronics, Samsung Life Insurance, Samsung Heavy Industries, etc.