Commodity items are not immune to mass production prices. Today Apple is the #1 flash memory user in the world thanks to the ipods,iphones and macbooks airs.
It is not only "negotiating power", it is as simple as making 10 million iPad processors make them more than 10 times less expensive than those that have not sold even a million. Having a semiconductors line(processor, LCDs...) are roughly the same fixed cost if you make 1 unit or a million.
Samsung is one of the few companies that could compete with Apple as the processor design is theirs, have great LCD and ram tech, but they have not a single product that compete with Apple in numbers.
Comments
Commodity items are not immune to mass production prices. Today Apple is the #1 flash memory user in the world thanks to the ipods,iphones and macbooks airs.
It is not only "negotiating power", it is as simple as making 10 million iPad processors make them more than 10 times less expensive than those that have not sold even a million. Having a semiconductors line(processor, LCDs...) are roughly the same fixed cost if you make 1 unit or a million.
Samsung is one of the few companies that could compete with Apple as the processor design is theirs, have great LCD and ram tech, but they have not a single product that compete with Apple in numbers.