Report: Apple punishes Samsung for iPod gaffe, SigmaTel may benefit

“After an apparent ‘gaffe’ by an executive from Samsung Electronics Co. Ltd., Apple Computer Inc. has reportedly ‘punished’ the South Korean semiconductor giant by maintaining its MP3 chip alliance with SigmaTel Inc., according to an analyst,” Mark LaPedus reports for The EE Times. “At present, Apple uses SigmaTel’s media processor chip within its current iPod shuffle product, an entry-level, flash-based MP3 player. Apple also uses PortalPlayer Inc.’s media processor chip within its current iPod nano line, a mid-range, flash-based MP3 player. But there have been signs that both SigmaTel and PortalPlayer lost the business at Apple. Last month, an executive from South Korea’s Samsung said the company won the MP3 media processor business for Apple’s next-generation iPods. At the time of this disclosure, ‘there was a good possibility that Samsung won both the [next-generation] Shuffle and Nano businesses,’ Berger said.”

“’We have increased confidence that SigmaTel will continue supplying the MP3 processor into the Apple [iPod] shuffle in 2H ’06, after a Samsung executive commented publicly that Samsung supplanted PortalPlayer in the next-generation iPod nano,’ he said in the report,” LaPedus reports. “‘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,’ he added.”

Full article here.

MacDailyNews Take: You think that’s punishment? We’d suggest asking the Time Canada Webmaster about Apple-branded punishment, but nobody (outside of a few fish perhaps) has seen or heard from him since January 2002.

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Related article:
Samsung claims to have won contract for next-gen Apple iPod chip design – April 26, 2006

23 Comments

  1. Wealthy Industrialite:
    They published the article about the new iMac G4 (with the swivel screen) on their website before the announcement (and before the issue hit newsstands.)

    Jobs alluded to the leak during the announcement by saying something like “if you haven’t seen it already…”

  2. badumpump…

    And for my next joke:

    Apple punishment? Sauce!

    But seriously, folks… Apple pun-ish? Has an “app” ever “pulled” your chain?

    Ok, I’ll quit now. ” width=”19″ height=”19″ alt=”tongue rolleye” style=”border:0;” />

  3. It is one thing to be upset with a leak but quite another to have a new business partner brag about something which has not been announced. My 75-year old mom knows Apple is secretive — this guy must have been a real idiot. I suspect he is now unemployed.

  4. Pennypacker,

    Without making you search for an answer, TC released upcoming-issue-photos of the lampy-Mac a full day before The Steve got to.

    This made The Steve cross. Don’t do that. It will be bad for you.

    Unfortunately Apple needs to keep it’s product pipeline under wraps. Unlike M$ — who can introduce VaporWare2005 in 2000, but then actually release it in 2007 — with 75% of it’s promised features missing, and still sell 50 million copies.

    Welcome to Bizarro World!

  5. That’s just dumb. Decisions on components suppliers should be made on cold, hard economic calculations, not on whether their executives were a little prematurely boastful. (What, they’re proud of winning our business?! Off with their heads!!)

    Let it never be said that there is a snub too petty for Steve Jobs.

  6. How childish if it is true. Some wally from Samsung saying they had a contract is so, ‘ummm, so what’. The flash has to come from somewhere and Samsungs gaffe makes no difference to anything, so why react to it.

    The whole thing is stupidly illogical. If Apple were considering Samsung, they must have thought they had a good product. Sooo, spitting the dummy and denying them their chance hurts who? Eh, maybe you and me as consumers.

    Stupid story and even more stupid Apple if it is true.

    Leo

  7. Once again…

    Unfortunately Apple needs to keep it’s product pipeline under wraps. Unlike M$ — who can introduce VaporWare2005 in 2000, but then actually release it in 2007 — with 75% of it’s promised features missing, and still sell 50 million copies.

  8. ” It´s all about Steve´s ego.”

    Maybe it’s because by introducing products they way they do, it creates huge buzz they wouldn’t get otherwise. I think you all are being too harsh about Apple’s secrecy. I think you just don’t get it.

  9. “Maybe it’s because by introducing products they way they do, it creates huge buzz they wouldn’t get otherwise.”

    Q: And exactly how much of that buzz is based on the media processor chip manufacturer that will be used?

    A: Zero.

  10. “”Maybe it’s because by introducing products they way they do, it creates huge buzz they wouldn’t get otherwise.”

    Q: And exactly how much of that buzz is based on the media processor chip manufacturer that will be used?

    A: Zero.”

    You’re missing the point. It the fact that they hinted at a new (revised) product and a timeline for said product.

  11. “But there have been signs that both SigmaTel and PortalPlayer lost the business at Apple”

    I don’t buy it.

    SigmaTel is also used in the new intel machines for their audio chips. Sounds like they didn’t lose anything but gained a whole lot.

  12. me,

    The point wasn’t missed at all, just a different approach. So Samsung hinted at a new/revised product which immediately discounts the desire for the old one. So, Apple introducing products the way they do creates a buzz that isn’t ordinarily present because of the surprise. And until that surprise is revealed, demand for the old inventory remains higher that it would otherwise.

    The silicon wasn’t the point, it was the hint of products to come that was. Samsung immediately caused an inventory glut which it must otherwise dispose of (costly Apple more money). So, Apple caused Samsung to lose money.

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