The hot story today is about the deal that Samsung and Apple are about to sign. Over the next year, Samsung will provide $7.8 billion worth of components for the iPad and iPhone. this deal would make Apple the single largest customer of Samsung.
I’m sure you’re thinking “wow, that’s a lot of money. Maybe Apple should merge with Samsung.” That was my first thought, but then I decided to see much this deal matters to Samsung.
It’s not as big as you think. According to Wikipedia, the Samsung Group earned revenues of $172 billion in 2009. This deal is only worth about 5% of Samsung’s revenues. It’s big, yes, but not overwhelming. In fact, I wouldn’t be surprised to discover that Samsung’s retail operation in the US were worth nearly as much.