How Apple Plans to Leverage Intel's Foundry
Tim Cook’s strategy to disengage from Samsung as a supplier of LCDs, memory and processors while simultaneously creating a worldwide supply chain from the remnants of former leaders like Sharp, Elpida, Toshiba and soon Intel is remarkable in its scope and breadth. By 2014, Apple should have in place a supply chain for 500M iOS devices (iPhones, iPADs, iTVs and iPODs). Add in the near term foundry relationship with TSMC and it spells not just freedom but a true Vertical Operations independent from its number 1 competitor. Add to this the fact that Apple may soon be lower in cost, an inconceivable thought to most observers. How can Apple have lower cost than Samsung? This is the story of 2013-2014 as Tim Cook is attempting to put the last pieces in place to build affordable $200 iPhones and $250 iPAD Minis for the other half of the world that is currently unaddressed today (eg China Mobile and India).
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